Home » APPG on Philanthropy and Social Investment report on “Unleashing the potential of philanthropy and social investment”

APPG on Philanthropy and Social Investment report on “Unleashing the potential of philanthropy and social investment”

The APPG on Philanthropy and Social Investment has just published a report on “Unleashing the potential of philanthropy and social investment”.

There are some references to Gift Aid and an indirect namecheck for the CTG Future of Gift Aid project.

Key long-term proposals that have been made by the philanthropy sector to increase the use of Gift Aid by donors are: 

  • Introduce a Universal Gift Aid Declaration Database allowing donors to fill in one online Gift Aid declaration to cover all donations. The database could then be checked by charities and HMRC.
  • Public education campaign to highlight the ways in which Gift Aid can be used to increase donations to charity, including targeted information for professional advisers.

 There is also work currently underway, led by the Charity Tax Group, to offer recommendations to ensure Gift Aid achieves its potential.

 The core proposals are:

  1. APPOINT A PHILANTHROPY AND SOCIAL INVESTMENT CHAMPION AS A SENIOR POST WITHIN THE CIVIL SERVICE
  2. BUILD CIVIL SERVICE KNOWLEDGE OF PHILANTHROPY, MATCH FUNDING AND SOCIAL INVESTMENT BLENDED FINANCE
  3. KEEP REGULATIONS ON VALUES-BASED INVESTMENT UNDER REVIEW
  4. WORK WITH CHARITY COMMISSION AND FCA TO DEVELOP GUIDANCE AND TARGETED REGULATION
  5. SUPPORT INITIATIVES TO DEVELOP DATA ON THE ECONOMIC AND SOCIAL CONTRIBUTION OF PHILANTHROPY AND SOCIAL INVESTMENT
  6. EXTEND DCMS GROWING PLACE-BASED GIVING PROGRAMME
  7. DEVELOP MATCH FUNDS ON PRIORITY THEMES
  8. REVIEW INCENTIVE FOR SOCIAL INVESTMENT LEARNING LESSONS FROM SITR
  9. OFFER LONG-TERM COMMITMENT TO GOVERNMENT GUARANTEE SCHEME FOR SOCIAL LENDING
  10. OPEN DIALOGUE WITH HM TREASURY ON PROVIDING SUPPORT FOR STRUCTURES FOR GIVING THAT USE EXISTING RELIEFS

The philanthropy sector has proposed a number of valid structures, notably:

  • Charitable remainder gifts (equivalent to “Living Legacies”, an established structure in the US)
  • An extension of the cultural giving scheme
  • Charitable ISAs A wider range of structures would enable professional advisers to support regular, lifetime giving across the UK.

The high-growth rate of giving through donor advised funds, which saw charitable assets surpass £1.9 billion in 2020, shows the potential for increasing giving when donors are supported by advisers with appropriate structures.

HM Treasury should consult with representative organisations within the philanthropy sector to extend the range of charitable structures available in the UK.