Charity Commission Funding
The Commission's funding will remain at the current level of £20.3 million until 2019-20. Whilst this is a 'freeze' and not a 'cut' in funding, William Shawcross, Chair of the Commission, recognises that this will put increasing pressure on staff.
Gift Aid Small Donations Scheme (GASDS)
Under GASDS, charities and community amateur sports clubs have been able to claim top-up payments on small cash donations. Claims made under GASDS have been much lower than originally estimated, and GASDS will be reviewed to ensure that it is operating as effectively as possible. A call for evidence is expected to be published before the end of the year.
A new fund which is expected to make £15 million a year (equivalent to the VAT raised on sanitary products) will be created to support women's charities.
A further £25 million from fines imposed on banks over the next three years will support military charities and other causes.
Corporation Tax Relief
The introduction of corporation tax relief for museums and galleries will be 'explored'.
At the 2016 Budget, the government will consult on expanding the circumstances in which a corporation tax deduction can be made for contributions to grassroots sport.
Social Investment Tax Relief (SITR)
The SITR scheme was expanded in the 2015 Budget so that investments in community energy organisations would become eligible for SITR from the date the scheme was expanded. The government has now confirmed, however, that such investments will not become eligible for SITR when the scheme is enlarged.
Social Impact Bonds
£105 million will be invested over the Parliament to help deal with issues such as homelessness, poor mental health and unemployment with £80 million being provided to the Cabinet Office to uplift funding for locally designed schemes.
National Citizen Service
Up to 30,000 places will be delivered in an expanding National Citizen Service by 2019-20 to support charities and third sector providers.
For more information, please contact Michael Halsey in our Employment Law team on 020 7665 0842.