George Osborne’s second budget promised some real changes to aid philanthropic giving, particularly to the arts but with potential wide ranging effects for the charity sector in general. So will it make a difference and encourage more people to give, more money and more regularly to charity in the UK?
Of course, time will tell but the Gift Aid reforms – essentially simplifying the system and enabling charities to ‘thank’ donors more effectively – certainly seem to be a move in the right direction that will help charities receive more money in without getting bogged down in too much administration. A good thing for small charities in particular who often struggle with the complexity and additional layers of administration that Gift Aid can bring. It will also help those who are perhaps not in receipt of major gifts but receive many smaller gifts, as the system will become more simple.
I am cautiously optimistic about these reforms and they are definitely a move in the right direction. However, they are unlikely to have an immediate impact on giving and need to be supported by government investment.
What do you think? Can you see a potential difference to your organisation’s future philanthropic income as a result of these reforms?