Age Cymru is warning that the public debate about the tax ploys of the super rich and the UK Government’s ‘charity tax’ is overshadowing a financial threat facing Welsh charities.
We're concerned that the charity tax will mean less cash for the voluntary sector from organisations that provide grants.
Richard Nicholls, Our Director of Income Resources comments:
“Recent headlines about the so called ‘charity tax’ have focussed on the bigger individual donations - big, one-off donations, which are usually the preserve of universities, museums and the very biggest charities in the UK.
“There’s also been lots of talk about tax avoidance tactics of the super rich, but this debate so far has largely overlooked two important points that could adversely affect Welsh charities.
“Smaller individual gifts could get snared up in the cap on tax relief - if over time these exceed the tax limit, then donors still won’t get the tax relief, so charities in Wales receiving smaller donations are likely to be impacted.
“The majority of the very big donations that are made go to grant making foundations and the change in tax on donations could prevent the very big donors from adding to these pots, which will in turn mean less money for charities later down the line.”
Age Cymru is calling on the UK Government to introduce measures to encourage the public to give money to good causes, as Richard Nicholls says:
“We are all feeling the pinch at the moment and there is less money to go around.
“This is why it is particularly important for government to be encouraging people to give to charities, rather than impose restrictions on donations.
“Age Cymru is adapting to the economic environment by increasingly concentrating on income generation through avenues such as selling insurance products for older people.
“We also have a string of charity shops in Wales, and we actively encourage the public to donate goods – such as coats and books, to Age Cymru shops.
“Age Cymru is also a lead charity partner in Wales for the Big Jubilee Lunch, and we’re giving away free packs to anyone who wants to hold their own event and help raise a few pounds for us in the process.”
Age Cymru is backing the Give It Back George campaign, which is calling on the Chancellor to reverse his decision and exempt charitable donations from the plans to cap personal tax reliefs.