Funding news

How the Budget looks to affect the voluntary sector - 24 March 2010

Progress on tax reliefs and social investment wholesale bank, but no movement on Gift Aid or substantial donor legislation.

A possible easing of VAT restrictions for charities, progress towards a social investment wholesale bank and an extension of tax relief on charitable giving between EU countries were among the announcements made in today's Budget.

There was also additional support for community lenders, such as community development finance institutions, and a pledge to increase by 15 per cent the volume of central government contracts carried out by small and medium-sized enterprises, a definition expected to include third sector organisations.

But there was no announcement on Gift Aid, other than to point out that a working party is developing a report for ministers that is expected to be completed in September. There was no mention of whether or not transitional relief would be extended until April 2011. There was also no firm announcement on reform to substantial donor legislation, apart from a reiteration of the Government's intention to replace the current rules.

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