Budget response concerning tax relief on charitable donations from the Association of Guernsey Charities
Submitted by Steve on 14:32, 6th Oct, 2016 |
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The Policy and Resources Committee decision not to introduce Gift Aid and Payroll Giving in the 2017 budget, following the review promised at the end of 2015 has been met with dismay by the Association of Guernsey Charities, which has been calling for change since April 2013.
Peter Rose, AGC Chairman, has indicated “this is clearly a slap in the face for local charities, and undoubtedly conflicts with the terms of the Social Compact between the States of Guernsey and the Charity sector, signed only two years ago.”
The Association of Guernsey Charities is distinctly aware that many local charities are finding it increasingly hard to raise the funds required to enable them to undertake their work; some being significantly hampered or restricted by living a hand to mouth existence. By introducing Gift Aid to allow charities to reclaim tax on all donations, and a scheme for Payroll giving, the States would substantially and effectively raise the overall value of donations to charities, and increase the prospect of regular contributions from the working population.
Peter Rose said “It is high time that the States stopped taking advantage, and helped introduce a more sustainable financial environment for Bailiwick charities. We are calling on States Deputies to defy Policy and Resources, and do the right thing by Bailiwick charities when the Budget is debated in the States.”
“I find it very hard to understand the position of the States” said Mr. Rose
“We are in the top 20 wealthiest per head jurisdictions in the world, and yet:
charities get no Gift Aid (Jersey and the UK do)
charities get no Payroll Giving (Jersey and the UK do)
the Cheshire Home gets no funding (Cheshire Homes in Jersey and the UK do)
charities get only the proceeds of the Christmas Lottery (Jersey and the UK get the whole proceeds), and
we pay less than a fifth of our fair share (0.12% versus 0.7% of GDP) in Overseas Aid to Lesser Economically Developed Countries”
“We have been pressing the States to introduce Gift Aid and Payroll Giving for many years. In Jersey and the UK, the governments didn’t have to be asked or pushed to do this, they just did it because it was the right thing to do to make sure charities were properly funded. Jersey and the UK clearly recognise the importance of a sustainable and properly funded charity sector.”
“We understand that members of the Policy & Resources Committee believe that the States is not in a position to bring in Gift Aid and Payroll Giving, however we estimate the cost at only around £900,000, just over 0.2% of the States’ annual revenue budget, only 23p out of every £100 of tax taken from us. The value of this to the charity sector would be disproportionately significant, together with the message of support it would send to organisations at a time when they struggle for funds, and when the States is asking them to assist in reducing States cost by taking over important elements of social policy.”
“It signifies to us that the States has no intention of keeping their commitment to Bailiwick charities under the Social Compact signed in September 2014, in particular the commitment to “foster and encourage the development of the Third Sector”, and to “work constructively with voluntary and charitable sector organisations”.
“Ahead of the Budget debate, the AGC will contact every States Deputy to explain in simple terms what our Gift Aid and Payroll Giving proposals are, what it will cost, and how charities, and the vulnerable and disadvantaged they support, will benefit. We will ask for expressions of support from them, and we will subsequently publish a list of all Deputies who support, and those who do not (or fail to respond) so that the electorate can see how their elected members feel about support for Bailiwick charities and voluntary organisations.”
At the GSPCA as with many charities in Guernsey raising the funds to carry out the work needed with no States Aid is a challenge and an introduction of a gift aid scheme such as this would certainly help not only the GSPCA but many of the charities in Guernsey.
To run the GSPCA costs over £1600 a day to care for thousands of animals every year, investigate cruelty to animals, provide an animal ambulance service and operate the Animal Shelter where we have over 300 animals at any time as well as much more that we do.
We are always working hard to raise the funds needed to run the GSPCA and appreciate all that support us and there are many ways to donate from the links below to calling us on 257261.
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