Posted on 24th March 2011
Consultation on the government’s Green Giving Paper closed on 9th March, with over 450 responses received. These will now be considered and feed in to the Giving White Paper, expected in May.
The Paper itself has been welcomed by respondees as a recognition of the importance of giving and philanthropy, and some of its recommendations have been applauded. However, there is strong criticism that it does not address the call for more tax incentives or the need to provide means to measure impact.
Philanthropy UK in its response says that while the Paper advocates increased volunteering and more generic giving, it has not addressed two important aspects of philanthropy. One is the need for an agency to which aspiring donors, new to the field, can turn for help in negotiating the complexity of choosing causes. Another is the need for donor guidance, education or assistance in selecting different ways to make a philanthropic contribution, for example: through a straight donation to a charity, or through an investment in a social impact bond; through setting up a permanent foundation or a sunset foundation; through funding via a local community foundation, or investing in a charitable loan scheme.
The Association of Charitable Foundation's (ACF') response naturally reflected its members’ concern with the proposal for mandatory payout for foundations as set out in the Green Paper.
Charities Aid Foundation (CAF) offers key recommendations to government, several of them involving tax incentives to increase giving. These include the introduction of lifetime legacies, promotion of gifts in shares, and exploration of incentives to encourage higher take-up of payroll giving. It also calls for the government to lead by example and to “show leadership in establishing social norms including encouraging a UK version of the Gates and Buffett ‘Giving Pledge’ – primarily this should be led by philanthropists but a pledge by ministers to give a percentage of their income would set a bold precedent”.
John Low, CAF chief executive says: “We now need [government] to set a strategic direction, and to improve, expand and promote good tax-effective mechanisms. Charities also need [government] to give practical help such as investing in new ways for donors to measure how effective their donations are to help build confidence and encourage giving.”
The Directory of Social Change (DSC) also broadly supports the Government’s aim to “increase levels of giving and mutual support in our society and to catalyse a culture shift that makes social action a social norm”, but believes the discussion “should not just be about giving more– it also needs to be about how we can give better or give well”. There also needs to be a consideration of where generosity is weakest and why, and how efforts to improve giving could be best focused, DSC argues.
DSC makes 10 recommendations to improve giving, including one to resist calls for a 5% payout as reported here.
The Institute of Fundraising (IoF) is among the many respondents calling for changes in the tax system, notably the simplification of tax reliefs to encourage wider usage of Gift Aid and payroll giving. IoF also argues for additional research into motivations for giving to underpin the recommendations made in the Green Paper.
The Institute emphasises the importance of “making the ask” and highlights the need for effective impact reporting. It tackles the need to remove barriers to giving, eliminating red tape, and declares that new technologies – a major focus of the Giving Green Paper – are “a useful tool but do not compensate for engaging donors in a sustainable long-term relationship”.
It suggests that the government is in danger of over-simplifying the state of giving in the UK by looking to the United States for solutions; arguing that the difference in culture between the two countries means a direct comparison is often not appropriate.
In its response, the National Council for Voluntary Organisations (NCVO) reiterates some of the recommendations of its Funding Commission report published in December. These include the setting up of an ‘Increasing Impact Fund’ andestablishing a 'Better Asking' Campaign to improve the quality of fundraising, promote the work of voluntary and community organisations and develop innovative forms of'asking' people to give their time and money to voluntary organisations
“Better asking is essential to securing more giving. Nudge theory should be used as part of an effort to increase giving. The approach should particularly focus on establishing giving as a social norm at a young age and at points where people transition through different stages of their lives,” says the response.
NCVO is also among those calling for incentives to improve the take-up of payroll giving and simplification of Gift Aid – a significant step in this process was announced in Wednesday’s Budget.
