Samples of articles
As an example of the information that LMSC subscribers receive we have listed 3 sample articles, chosen at random, from our recent archive.
Third Sector Review
On 18 October the House of Commons debated the Third Sector Review and much of the debate was consensual in nature. Ed Miliband began by stressing the value of asset transfers from local authorities to small organisations and the importance of stable funding for the health of small voluntary sector organisations. The Government had made available £30 million to help to fund innovative projects but more work needed to be done. He conceded that there could be issues of accountability when assets were transferred to community organisations, but
We need to encourage local authorities to see voluntary organisations not as the enemy, as they are sometimes seen, but as an ally in helping to improve local communities.
The Government was driving the move to three-year funding through central Government, and when local authorities were examined (presumably by the Audit Commission) on how they spend their resources, for the first time one of the issues would be whether they funded third sector organisations for a number of years or for just one year at a time.
He also emphasised the importance of volunteering. Youth volunteering was clearly a priority, but he also talked about intergenerational volunteering as a means of helping to bring young and old people together.
A big issue in many communities up and down the country is about a feeling that goes both ways: young people's suspicion of the old, and elderly people's fear of the young.
He also stressed the message from the review about third sector organisations' ability to be advocates for social change. Third sector organisations often spoke up for those who had the least representation in society; however, they were sometimes deterred from campaigning partly because of the perception of the rules, and partly because they feared that if they were funded by the Government, they might endanger their funding by criticising the Government. He noted the Charity Commission's statement in April 2007 about self-censorship by trustees in undertaking campaigns, and the Commission's suggestions that trustees might not be aware of the extent to which they could campaign.
The law did not allow charities to be set up for political purposes; and he emphasised that the law should not be changed in the future. He was not in favour of organisations being able to set up for a political purpose simply to campaign to change the law; the problem was, what charities thought when they were conducting their activities and trying to fulfil their charitable purposes. The ability of charities to speak independently should be made clear in law. The present situation was confusing.
Speaking from the Opposition Front Bench, Francis Maude said that the principles of the Compact were important but that many in the sector now doubted their effectiveness.
Full cost recovery, prompt payment and multi-year funding were simply not happening on anything like the scale envisaged. The dependence of third sector organisations on the State had increased through the increased use of contracts rather than grants, with strict constraints on what can be done with the money. That increase reflected a mindset that saw the third sector as a means of outsourcing Government activities rather than finding different and better ways of helping people and communities. In particular, he criticised the way in which the Department of Work and Pensions had treated voluntary sector bidders for contracts under the pathways to work scheme. The tendering process for phase 1 of the scheme was aborted less than three hours before the original deadline for tenders in February as a result of the Government revising the specifications. A new deadline was set for 25 April, requiring significant additional resources to be devoted by the bidders - and when the results of phase 1 were announced, only two of the 16 regional contracts went to the voluntary s
Article information
- Date: 22 October 2007 (Posted: 22 October 2007)
Of additional interest:
New EDM: Impact of Regulations on Village Halls and Community Centres
Commons Early Day Motion (EDM) no 66, Impact of Regulations on Village Halls and Community Centres, sponsored by Brian Cotter MP on 13 November 2002, draws attention to the impact of health and safety regulations and the lack of funding. A link to the Commons EDM database is given below.
Article information
- Date: 15 November 2002 (Posted: 20 November 2002)
Of additional interest:
Gift Aid: Fanning Report
HM Treasury has published the Fanning Report on Gift Aid (GA) and has also published an official response from Justine Greening MP, Economic Secretary, who is responsible for charity taxation. Peter Fanning had submitted his report on 13 October. At the meeting of the Gift Aid Forum on 30 November Justine Greening outlined the Government’s initial response to the recommendations. She confirmed that there was ‘much in the report that could be taken forward’. The Fanning Report can be downloaded from this link.
The main points of the Economic Secretary’s response are summarised below.
Taking Recommendations Forward: Charity Tax Forum
The Minister recognised that Gift Aid has been a success but said that it was important to build on this success. She announced that HMRC will be setting up a Charity Tax Forum which will have wider membership than the Gift Aid Forum to look at wider issues, including VAT, but will also have a useful role in progressing some of the recommendations in the Fanning report. She concluded that the Forum had been useful in identifying the concerns and priorities for different parts of the charity sector and that the Fanning Report would help the Government in the reform process.
Simplification and administrative improvements to GA
- HMRC will “move quickly” on a number of recommendations where guidance could be improved or clarified, with, for example, oral declarations, split payments and sponsored events.
- The cost and benefits of online filing for Gift Aid claims will continue to be explored and the sector’s views will be sought through the HMRC Charity Tax Forum.
- There is strong support for a Gift Aid Database which would have real advantages for charities. HMRC is unable to fund such the creation of such a database currently but it will be able to work with the sector to ensure that it meets legislative and audit requirements. As the Minister notes, the Charity Tax Group has been exploring the development of a database with potential suppliers.
- ‘Intelligent forms’ for charities will be launched in the New Year.
- The sector is to keep HMRC informed of new technological innovations so they can advise how Gift Aid can apply.
Higher-rate relief redirection
- HMRC has been asked to take forward consideration of a system of redirecting the higher-rate relief to the charity as part of its work with the HMRC Charity Tax Forum.
Promotion of Gift Aid
- There is recognition that there is work to be done both to raise awareness of Gift Aid – particularly among donors – and to improve the knowledge and capability of charities. There is support for the Fanning report proposal that tax professionals might volunteer time and skills to help charities benefit from Gift Aid.
Measures which will not be introduced
- Gift Aid should not apply to money equivalents such as donated goods and donated expenses, because the Treasury argues that it would take Gift Aid away from being a relief on donations and increase complexity.
- Couples will not be able to claim Gift Aid when only one of them donates on behalf of the couple as it risks severing the link between the individual donor and the tax they have paid. This in turn could risk Gift Aid being reclassified as expenditure rather than a tax relief
Payroll Giving
- The Treasury will not bring Payroll Giving into Gift Aid but will consider ways of improving it and encouraging its use.
Small Charities
- Recommendation 6 of the Fanning Report was that Ministers should have regard to the particular needs of small charities in the implementation of these proposals and give them priority when there is less pressure on public expenditure. The Minister’s reply does not appear directly to address this recommendation.
Transitional relief
Justine Greening also confirmed that the current transitional relief will not be extended:
It was introduced to address a particular problem resulting from the change in the basic rate of tax and was always intended to be temporary”. The Treasury recognises that many charities are finding it hard in the current economic climate but feels that transitional relief is not the most effective way of addressing this. The £100m transition fund that was announced in the Budget “will better target those charities in most need.
Article information
- Date: 03 December 2010 (Posted: 03 December 2010)
Of additional interest: