The government should take care when cutting funding to voluntary sector organisations and should encourage local authorities to do the same, according to the Charity Finance Directors' Group.
In its submission to the comprehensive spending review, the group calls for a reduction in red tape for charities, a simplification of the Gift Aid regime and a fresh look at the impact of VAT and trading regulations on charities.
The groups calls for:
- A more strategic approach to cuts, including identifying the work done by charities working with hard-to-reach groups and identifying local needs.
- Encouragement to local authorities to work in partnership with the voluntary sector.
- A more consistent commissioning process that allows for full cost recovery.
- More transparency and accountability in the process of cutting services, so that the sector does not have to waste resources planning for cuts that might not take place.
- A reduction in the regulatory burden for charities.
- An examination of different sources of funding, such as the Big Society Bank.
- Simplification and updating of the Gift Aid regime.