Following a yearlong campaign, the Charity Retail Association and Charity Tax Group have welcomed the announcement  in the Budget of a relaxation of the rules surrounding retail Gift Aid letters.

Currently charities must write to donors of Gift Aided second-hand goods every year to tell them of the proceeds resulting from their donation, no matter how small those proceeds are. After extensive lobbying by the Charity Retail Association and the Charity Tax Group, the Chancellor has accepted that such letters need only be written every three years, provided that the proceeds are less than £20 per year.

Charity Retail Association Chief Executive Robin Osterley said:

“Although this may seem like one of the smaller and less dramatic announcements of the budget, the impact it will have on charities is actually very substantial, saving hundreds of thousands of pounds per year across the charity retail sector, and relieving charities of a considerable administrative burden. We are very pleased that our lobbying efforts, together with our partners the Charity Tax Group, have brought about this very beneficial change”.

Charity Tax Group vice-chairman Richard Bray said:

“For charities, contacting supporters can be an expensive process in terms of time or money. Many charities have also received negative feedback from donors about them “wasting charity resources” by sending letters about Gift Aid claims for a small sums. These new rules are therefore a very welcome practical change and we are grateful to HMRC for listening to our concerns. We look forward to continuing to work with the Charity Retail Association to make the Retail Gift Aid process as straightforward and effective as possible for charities, donors and HMRC.”

The change will be implemented next year, and more details on procedures and methods will follow when known.

CTG’s full summary of Budget developments relevant to charities can be read here.

The Charity Retail Association press release on this issue can be read here.