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Gift Aid

Volume 506: debated on Thursday 4 March 2010

To ask the Chancellor of the Exchequer (1) how much the Government contributed to charities through the Gift Aid scheme in each of the last five years for which figures are available; and how many people made charitable contributions through the scheme in each such year; (319949)

(2) what steps he has taken to increase the number of charitable donations made using the Gift Aid scheme.

HMRC does not collate figures for the total number of people giving using Gift Aid. However, donations using Gift Aid, and the amount of Gift Aid tax relief paid to charities over the last five years, are set out in the following table.

Amount donated using Gift Aid (£ billion)

Repayments of tax to charities through Gift Aid (£ million)

2004-05-

2.8

626

2005-06

3.4

751

2006-07

3.8

830

2007-08

4.1

898

2008-09

4.3

1947

1 £947 million includes £56 million paid as Gift Aid transitional relief supplement.

Source:

http://www.hmrc.gov.uk/stats/charities/menu.htm

(tables 10.1 and 10.3)

Following the Gift Aid consultation in 2007, the Government announced a package of measures in Budget 2008 aimed at increasing the take-up of Gift Aid, including:

improved HMRC guidance for charities and donors;

a new Gift Aid toolkit to help charities set up and run successful Gift Aid schemes;

extension of the tax effective giving initiative delivered through the Institute of Fundraising;

a small charities training programme, to ensure that small local charities can access guidance and training on Gift Aid;

promoting the use of local umbrella charities to help community and voluntary groups access Gift Aid;

a new online Gift Aid mentoring forum for charities.

In February 2010, HM Treasury set up a Gift Aid forum to consider further improvements to Gift Aid, informed by recent Government-sponsored research into the effect of tax incentives on charitable giving. The forum will come up with recommendations by September 2010.