Charities benefit from the Budget

There were several pieces of good news coming out of the Budget for Charities explains Charities partner Harri Lloyd Davies.
The first is the simplification of gift aid rules.  Gift aid on small donations which total up to £5,000 per annum can now be claimed without filling in all of the paperwork.  This should reduce the administrative burden and help charities who have not taken full advantage gift aid previously to increase their income.

The Government has offered fundraisers and charity finance professionals a bit less of a headache when it comes to saying thank you to donors, or incentivising them to give in the first place. The rise in Gift Aid benefits limit to £2,500 from £500 offers greater flexibility for charities in the scale of packages they offer their major donors whilst still being able to claim Gift Aid.

There was also a new relief to encourage people to leave more of their estates to charity in their will.  A 10% reduction in the inheritance tax rate for all estates that leave 10% or more  to charity should be a useful tool in helping charities to increase their legacy income.

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