'As you will appreciate, there is a clear danger that this measure could have the unintended consequence of disincentivising the donation of large gifts to charity.'
Following the angry reaction of charities to the Budget, which proposed a cap on income tax relief, affecting how much philanthropists may want to give, Spear's has exclusively obtained a letter sent today from the heads of charitable bodies to George Osborne:
We write regarding the cap on income tax reliefs announced in the Budget and specifically regarding their negative impact upon donations to charity.
As you will appreciate, there is a clear danger that this measure could have the unintended consequence of disincentivising the donation of large gifts to charity. Charities rely heavily on major philanthropy of this kind, and any reduction in giving could be devastating for the many vulnerable people who rely upon our services. The measure also is clearly at odds with the Government's commendable efforts to promote philanthropy, sending the wrong signal to major donors who have thus far been encouraged to give more.
We know you will want to avoid such an outcome, and we are keen to work with you to do so.
Sir Stephen Bubb, ACEVO
Caron Bradshaw, Charity Finance Group
Peter Lewis, Institute of Fundraising
John Low, CAF
John Hemming, Charity Tax Group
Sir Stuart Etherington, NCVO
The government appears to have badly misjudged the effect the income tax relief capping will have on charities and face a revolt from the third sector.