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Are “Supporting Giving” Andy Jones Gift Aid - It’s alive and kicking.

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Presentation on theme: "Are “Supporting Giving” Andy Jones Gift Aid - It’s alive and kicking."— Presentation transcript:

1 Are “Supporting Giving” Andy Jones Gift Aid - It’s alive and kicking

2 Bringing you up to date April 2005 Merger of HMIT and HMCE Now - Her Majesty’s Revenue and Customs or HMRC - a single point of contact for charities Over-riding theme is “Supporting Giving” Breakdown perceived barriers Increase charities using tax relief’s Increase amount of repayment to charities

3 What will you see - the future. The Policy Charity tax policy developed with an understanding of the sectors needs. The Practice More consultation with the sector (Charities Advisory Group CAG) and providers. Extension of ‘helpline’ to include charities as employers. Changes to claims process - automation?

4 Working in Partnership Small office of just over 100 staff - limitations We need help. On subjects Institute of Fundraising - Payroll Giving Umbrella groups (Stewardship) On specialist sectors UKF - Channel to professional, respected advice Software - Access to service providers

5 Gift AidA new scheme! Gift Aid now in it’s 6th year In 2004/2005 Gift Aid of £652m was repaid to charities Almost 400,000 claims made in year Incentives for donors (tax relief, carry backs) Many mistakes - not registered, arith and transposition, wrong forms, wrong signatory Many charities using it - many not - why not?

6 Gift Aid - The art of alchemy Magic Box

7 Gift Aid - The art of alchemy Donate £10 Get £12.82 Get £10 Donate £10 & declaration Policy Rules Process Magic equation: Cash + declaration = Gift Aid = 28% more cash

8 Paid £652m To pay £900m? £1.5bn+ Success Real success

9 So why is it so difficult? Givens Legislation Rules Process Unchanged Problems Inventive Complicated Confusion Time Understanding Fear Guidance Solutions Understanding Knowledge Automate Trust Use others

10 Gift Aid - When to use it WhatY/NComment Donations (money)Yes Donations (other)No SponsorshipYesOrganisation AuctionsYes/NoCare/Risk Events (Gala’s etc)YesCare/Risk Raffles etcNoEntry Payment Debt waiversYes/NoTake care

11 You earned it make sure you keep it Regulatory role 2004/2005: 326 Audits Recovered £3.84m 1700 AdjustmentsStopped £1.21m 575 EnquiriesRecovered £1.46m 2601 in total compared to No of charities/claims adjusted by advice given and assistance obtained.

12 Basic principles Audit trail - three simple steps. Money - follow it all from receipt to use Declaration - Ensure they are retrievable Retention - Current year + 6 earlier ones. Consider automating as much as you can.

13 Using others HMRC - good source of information and advice and are approachable. Gather and share knowledge from around the sector. Third parties - independent, shared knowledge, practical easy to use processes. Have an established relationship with HMRC and are defining new processes. Help manage records you need.

14 Measuring success. How much money can you take from us? We would like to see: All tax schemes (Gift Aid, Payroll Giving, SA Donate) more widely used to encourage giving in different ways. Role for charity and advisors Those schemes used to their maximum e.g. converting more donations to Gift Aid. What could you do? Set yourself targets, use SORP to build a plan.

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