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Community groups and social enterprises benefit from the budget, but income tax drop will eat into Gift Aid
By Paul Jump and Helen Warrell, Third Sector Online, 21 March 2007
The Chancellor's eleventh budget has promised to bolster community organisations with an £80m fund, and to conduct a Government review to help charities maximise their take up of Gift Aid.
But the fall in the basic rate of income tax from 22 to 20 pence in the pound will reduce the amount that Charities can reclaim through Gift Aid. The loss to charities could be as high as £71m, according to the Charities Aid Foundation. The greatest losses are likely...
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