Will Help for the Big Society be Big Enough?

George Osborne’s budget proposal of “Big Help for the Big Society” has been welcomed by charities; however there was still an air of scepticism over whether it would be enough to help charities who are facing serious financial difficulties.

Osborne has hailed the measures as bringing "the most radical reforms to charitable giving for more than 20 years”. The basis of the changes lie in a dramatic simplification of Gift Aid, meaning charities can lodge donor’s details online and also claim Gift Aid on small cash donations, up to £5000 per charity year but without the Gift Aid declaration form. Osbourne believes it could save £240 million, with up to 100, 000 charities reaping the rewards.

Also present in the budget were changes to inheritance tax, which would see people who leave 10% of their estate to charity having their inheritance reduced from 40% to 36%. Osbourne stated that he wanted to create a culture where, "giving 10% of your legacy to charity is the new norm in our country".

Martin Sime, chief executive of the Scottish Council for Voluntary Organisations, commented on Osborne’s budget proposals;

“The Budget certainly doesn’t fix the serious financial difficulties faced by charities and voluntary organisations across Scotland. But long-awaited reforms to the Gift Aid system are welcome news.  A new scheme allowing charities to claim Gift Aid on small donations up to £5000 without any bureaucratic form-filling will be particularly welcome news for smaller charities.”

Cathy Ferrier, Oxfam's fundraising and supporter marketing director said the Chancellor was, "giving with one hand and taking away with another".

Source: Herald

Tags: Fundraising, Policy, Voluntary organisations