charitable donations on the up
Figures from HM Revenue and Customs show that charitable
donations from the public have increased by more than 60% over the
past five years, despite the recent recession and fears of rising
unemployment.
The figures show that in the year to April 2005, the total value
of Gift Aid donations was £2.82 billion, but that by last year that
figure had risen to £4.57 billion. Donors who tick the 'Gift Aid'
box when they donate can reclaim basic tax rate relief from HMRC,
and by this scheme alone, HMRC made donations of over £1 billion
last year, compared with £626 million five years ago.
The increase in charitable donations is being linked to
increased use of the internet, which makes it easier and quicker
for individuals to donate to good causes and to assess their Gift
Aid eligibility. Currently only 2% of charitable donations are made
online, but there are calls for the sector to promote online
donations in order to increase charitable giving.
This comes at a time when charities, like savers, are feeling
the effects of recent interest rate cuts, and are consequently
receiving little interest on monies held in savings accounts. It is
therefore essential that they try to cut costs and improve
efficiency. Charities are encouraged to shop around to try to find
the best rates available.
