Charities in Wales could pull in an extra £27 million a year if they took full advantage of the benefits of tax-efficient giving.
According to The Giving Campaign Wales, which was launched on 5 March, it is vital that Welsh voluntary organisations start promoting tax-efficient giving tools such as Gift Aid, payroll giving and share giving if they want to start operating more effectively.
Research by the Welsh Council for Voluntary Action found that more than £210 million was donated to charities in Wales in 2001/02. The Giving Campaign Wales estimates that around 80 per cent of these donations were not given using tax-efficient methods.
The body decided to launch a separate organisation for Wales after securing an agreement with the National Assembly. It hopes that by establishing the division, more Welsh charities will be encouraged to start working with The Giving Campaign on fundraising reforms.
"The Welsh voluntary sector has a markedly different make-up to the voluntary sector in England and we felt it was appropriate to launch a branch of The Giving Campaign that dealt specifically with issues faced by charities in Wales," said Peter Gilheany, communications manager at The Giving Campaign.
"Charities in Wales rely on a smaller donor base and need specialist knowledge to help them make a difference through the promotion of tax-efficient giving."