Navigation: Funding Advice > Tax Reliefs
Some organisations finance their day-to-day work by ongoing, small-scale local fundraising efforts, and reserve their approaches to the sources listed on this website for support with the occasional large-scale project. It is most important that organisations with charitable status should be aware of current regulations governing charitable giving, whereby it is possible to recover tax on donations under a broad range of circumstances. Full details are explained in a booklet (Getting Britain Giving to Culture: An introduction to the new tax regime for giving to cultural charities) available from the Department for Culture, Media and Sport.
In order to encourage all donors to contribute to the fundraising effort in the most tax-efficient manner possible, higher rate taxpayers can be invited to make a larger gross donation than standard rate taxpayers. Because of the way in which tax relief is calculated on payments made under Gift Aid, the net cost to the donor will be the same in either case, but the charity will receive a greater contribution in the former case. Thanks to current Gift Aid regulations, many fundraisers have the considerable satisfaction of knowing that the largest single contributor to their appeal is the Inland Revenue!
Alleviation of VAT
Alleviation of VAT on repairs to historic buildings is not generally available at the present time. However religious bodies should take note of the partial VAT alleviation which is available on repairs to listed places of worship under the Listed Places of Worship Grant Scheme (see further information in the detailed listing section).
Further useful information regarding fundraising is contained in notes prepared by the Association of Preservation Trusts (APT). In particular, their Finance and Funding Note G6 (Fundraising) introduces the principles of fundraising, draws attention to available tax reliefs and discusses other methods of giving. It concludes with helpful suggestions for further reading.
[Note: This page is under construction; further material will be added from time to time.]
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