{"id":156,"date":"2007-05-06T12:34:52","date_gmt":"2007-05-06T12:34:52","guid":{"rendered":"http:\/\/dalelane.co.uk\/blog\/?p=156"},"modified":"2009-05-17T18:45:56","modified_gmt":"2009-05-17T18:45:56","slug":"budget-2007-effect-on-gift-aid","status":"publish","type":"post","link":"https:\/\/dalelane.co.uk\/blog\/?p=156","title":{"rendered":"Budget 2007 effect on Gift Aid"},"content":{"rendered":"

Budget 2007 was a little while ago now, but I’ve only recently started to have a look through some of the finer details. In particular, I’m looking out for the sections which will affect charities. <\/p>\n

One change jumps out of a lot of the analysis produced by groups involved in charities: the effect of changes in income tax rates.<\/p>\n

The basic rate of income tax was reduced in the budget. At first glance, this sounds like a good thing, but it has a knock-on effect on Gift Aid<\/a> – the scheme where charities can reclaim the tax paid on donations received from UK taxpayers. For many charities, Gift Aid makes a significant difference to the income that they receive. <\/p>\n

By reducing the basic rate of income tax the Budget has essentially reduced Gift Aid claims from 28.2% to 25% (from next April). After a little maths, this works out to meaning that (in order to keep the same level of income that they currently receive) charities will need each of their donors to add 25p to every pound that they currently give. <\/p>\n

Or in other words, imagine a donor who currently makes a monthly direct debit of \u00c2\u00a35. They will now need to increase this to at least \u00c2\u00a37.20 a month for the charity to get the same amount of income (allowing for tax change and inflation). <\/p>\n

Our imaginary donor may be unwilling to do this, which means that charities like us need to start planning now on how to handle this impact on fund-raising.<\/p>\n","protected":false},"excerpt":{"rendered":"

Budget 2007 was a little while ago now, but I’ve only recently started to have a look through some of the finer details. In particular, I’m looking out for the sections which will affect charities. One change jumps out of a lot of the analysis produced by groups involved in charities: the effect of changes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-156","post","type-post","status-publish","format-standard","hentry","category-charity"],"_links":{"self":[{"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=\/wp\/v2\/posts\/156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=156"}],"version-history":[{"count":0,"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=\/wp\/v2\/posts\/156\/revisions"}],"wp:attachment":[{"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dalelane.co.uk\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}