December 2011

There has been a sustained decline in private sector support for the arts, according to the first UK Arts index published by the National Campaign for the Arts (NCA). Business and individual giving fell by 17% and 13% respectively from 2007/8 to 2009/10 it shows.

An extra £10m for tax relief on gifts of pre-eminent objects to the nation was announced by the Chancellor in his recent autumn statement, taking the total relief to £30m per year. The aim is to stimulate lifetime giving. Objects can be loaned or given to appropriate institutions including certain charities and museums for safe keeping and to provide public access. In return donors will receive a reduction in their UK tax liability based on a percentage of the value of the object they are donating.

The Chartered Institute of Taxation (CIOT) has launched a new Gift Aid resources website. The aim is to provide a full summary of Gift Aid and related issues for use by charities and tax advisors to philanthropists. HM Revenue & Customs (HMRC) pays around £1bn a year to charities and other qualifying bodies through Gift Aid.

Although the proportion of donors who gave more than £100 to charity last year is just 7%, their donations account for 45% of the total amount given. This is a key finding in the latest report UK Giving 2011 as part of the long-running study of charitable giving, commissioned by the Charities Aid Foundation (CAF) and the National Council for Voluntary Organisations (NCVO).