Putting up the price of philanthropy
Community foundations have for many years been a vehicle for major giving by philanthropists from all walks of life who are passionate about a place – whether that be their home, where they do business or just somewhere they love. Many local causes depend on the funds established by these donors which provide grants here and now and, through endowments, for generations to come.
Encouragement to give larger amounts is provided through income tax relief as part of Gift Aid. But in his March 2012 budget, the Chancellor announced a cap on such tax reliefs. The problem is that doing so puts up the price of philanthropy. So, the biggest donors – who account for the most given to charity in the UK, may well give less. But it is not just about the very wealthy. People are in a position to give larger amounts for all sorts of reasons – because they themselves have come into a legacy for example – and the risk is they will be put of giving altogether because something simple is made to seem complicated.
We at the Community Foundation Tyne & Wear and Northumberland have given our backing to a campaign led by organisations including NCVO, CAF and our own national network, to have this problem tackled by exempting charitable donations from the Chancellor’s plans.
The campaign is called Give it back George. I hope you will take time 10 minutes to read about it, and consider giving it your support. Today’s major gifts are tomorrow’s community grants.