We can make Gift Aid go further – here is how
CAF responds to Treasury Committee inquiry: “Tax after coronavirus” and makes representation to the Comprehensive Spending Review
1 October 2020
In this time of unprecedented uncertainty and instability, civil society continues to do vital work across society. It is at the heart of community responses to the crisis: helping the most vulnerable to withstand the impacts of the pandemic; releasing pressure on our public services; continuing to provide vital support, and connecting people and communities across the country.
But many charities are struggling enormously in the face of a “double hit” - as their income drops due to cancelled fundraising activities, closure of charity shops and changes to funders’ activities; whilst at the same time demand for their services increases due to the impact of Covid-19 on their beneficiaries. Social distancing and other measures are also forcing changes in operations and resulting in increased costs. CAF’s charity polling three months into lockdown found that demand for charity services was still increasing, and that half of those surveyed were reporting that they would not survive more than a year without further support.
The initial £750m charity support package, and the broader furlough scheme (which has now been replaced by the job support scheme), were both welcomed and will help charities. However, the gap between support provided and need remains vast (with a potential £10.1bn funding gap for the sector opening up for the second half of 2020). And while direct Government stimulus will be crucial, the importance of philanthropy and giving as additional sources of longer-term support for civil society in a post-Covid-19 world cannot be underestimated.