But there was also a rather disappointing and somewhat disturbing undercurrent running through most of the proceedings, and before looking at this it is useful to review some of the background to New Gift Aid.

New Gift Aid was introduced by Gordon Brown in April 2000 as part of the Get Britain Giving campaign The main objective was to increase the ½ to ¾% of our Gross Domestic Earnings that we as a nation give to charity closer to 1½ to 2% that is given by Americans. In the invitation to participate in the Consultation on Gift Aid , Dawn Primarolo, the Paymaster General states “ This consultation will provide a valuable opportunity to .. explore ways to increase the tax up of Gift Aid.”

So the object of Gift Aid is not to increase funds into the coffers of charities – this is the effect– it is to increase donations and promote a culture of giving. If the august bodies responsible for organising this consultation simply wanted to get charities more (tax) money, this could easily be achieved by changing the Gift Aid rate, simplifying the claims procedure, or automatically allowing tax claims on donations – all of which were suggested in one form or another.

Here is an amazing opportunity for us to get free money...

And this is what is disturbing – the fact that, based on what was seen at the seminar, charities seem to feel that it is the system that is to blame for the low take up, not the charities. The feeling is that Gift Aid should be made easier, the money should drop into their pockets and the object of increasing take up largely ignored. So instead of looking at the situation and saying ‘ here is an amazing opportunity for us to get free money – how can we best achieve it’ the approach seems to be ‘its too hard, please make it easier or else we will just give up’.

The situation is not helped by the fact that there seems to be a feeling that all aspects of fundraising must stay within fundraising. Charities generally would not think of handling there own legal problems, or preparing their own accounts. If they had an electrical problem or leaking pipes they would not hesitate to call in a plumber or electrician. So why do they believe that they should be dealing with their own Gift Aid recovery? And whilst I must declare my own interest as a Gift Aid recovery specialist, there are plenty of other organisations, including accountants, charity consultants, software supplies and other financial specialist who are more than capable to undertake this function. Not only would charities receive additional funds, they would also free up their valuable, often volunteer resources to focus on the real objectives of the charity.

Whilst I think that the objectives of a nationwide Gift Aid consultation process are good and useful and that there will be a lot of reform and changes emerging, I also believe that there is a very simple short term at least fix to the problem. Instead of trying to educate and train fundraisers in all 185,000 charities, rather ensure that those financial and other advisors are able to offer a full Gift Aid recovery service. In most cases the operation would be self funding, as the fees would be paid for from the Gift Aid recovered. And as any schoolboy could tell you 80% of something is better than 100% of nothing.
Barry Gower

GAIN

About GAIN

GAIN is a specialist Gift Aid consultancy, specialising in recovery as well as innovative Gift Aid implementation. In addition to normal Gift Aid on regular donations and qualifying charity memberships GAIN has developed some more unusual approved Gift Aidable fundraising methods such as Gift Aid on charity dinners, fundraising event ( golf) days and recycled cartridges.

Barry Gower, Managing Director GAIN (Gift Aid Recovery Consultants)
51 Love Lane
Pinner
Middlesex
HA5 3EY
tel: 0208 868 1307
Mobile: 07910 391653
e-mail: bg@gain.me.uk
www.gain.me.uk