A report by New Philanthropy Capital on the distribution and impact of charities across England, includes a recommendation that the Government should look at the charity tax system, especially Gift Aid and consider how it can help ‘left behind’ areas.

This follows data in the Charity Tax Commission report that found that Gift Aid claims were concentrated in the south of England (for completeness it should be noted that the author of the report, NPC Chief Executive, Dan Corry, was one of the Charity Tax Commissioners).

While the intentions are laudable, CTG has always expressed concern at any proposals to redistribute Gift Aid, arguing that there are more appropriate mechanisms available (including grant funding). A central tenet of Gift Aid is the link between the donor and the tax they have paid to cover the Gift Aid claim – any disruption in this link risks the relief being classified as public expenditure and subject to change.

It is also important to remember that Gift Aid will always be highest where there are most donations and many national charities process Gift Aid claims at a London HQ, despite the donations being made locally, in other parts of the country.