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18 March 1999
YOU GIVE: WE GIVE
The Chancellor and Eddie Izzard Launch Gift Aid 2000 Campaign to Boost Charitable Donations
A Government campaign to encourage charitable donations to education and anti- poverty projects in the world's 80 poorest countries and to make the donations go further was launched today by the Chancellor Gordon Brown and Eddie Izzard.
Gift Aid 2000 will promote the Millennium Gift Aid scheme and will focus, in particular, on young people aged 18-34, who are not regular charitable givers.
The scheme means that when someone gives a gift of £100 or more to charities working on education or anti-poverty projects in the world's poorest countries, the Inland Revenue gives to the charity as well.
It will be backed by an advertising and telemarketing campaign which includes:
- television commercials on independent and satellite channels, starring Eddie Izzard, which will begin screening tomorrow;
- national press inserts;
- reminders on cinema tickets and beer mats;
- a paperless direct debit system that makes it easy for young people to give small instalments. There will be a phone number - 0845 075 2000 - which donors can ring to give their donations; and
- a website which gives more information on the charities participating in the scheme.
External links
Launching the campaign the Chancellor said:
"I want to mark the Millennium in the best way possible, by making the Year 2000 the Giving Year.
"This will be our opportunity to turn our good intentions to good deeds for millions of people around the world who desperately need our help. And what makes it even more special is that if you give the tax man will give as well making your contribution go further."
Tax relief is available on donations of £100, given as a single cash gift or in instalments, which are given to support anti-poverty or educational projects in the world's poorest countries.
The Chancellor also announced that legislation will be brought forward in the Finance Bill to improve the Millennium Gift Aid scheme. Where a Millennium Gift Aid donation is made by instalments the tax that charities can reclaim will be calculated at the basic rate of tax for the year in which the first instalment is paid.
NOTES TO EDITORS
1. There is a local rate phone number - 0845 075 2000 - which people can call from today to make their donations. People who wish to give by instalments of £5 a month or more can set up a direct debit over the phone without the need to sign a form. Donations can also be made by credit card, debit card or cheque.
2. Millennium Gift Aid was introduced by the Chancellor Gordon Brown in his 1998 Budget. It provides tax relief on donations of £100 or more by an individual to support education and anti-poverty projects in the world's 80 poorest countries.
3. Donations under Millennium Gift Aid may be made in a single payment or by instalments. The total donation must reach at least £100 by 31 December 2000 in order to qualify for the tax relief. The Inland Revenue adds basic rate tax to the donation, so that every £100 donated is worth almost £130 to charity.
4. At present there are 80 countries which can benefit under the scheme. These are the countries eligible for lending either by the International Development Association (IDA), or jointly by the IDA and the International Bank for Reconstruction and Development, both organisations of the World Bank.
5. Recent research has shown that the number of people giving to charity is falling. The trend is greatest among younger people. The Gift Aid 2000 campaign will focus on young people in the age range 18-34 and will aim to encourage them to start giving regularly to charity.
6. At present donations made by instalments are aggregated and treated as a single donation, made on the date of the last instalment. Charities get tax relief at the basic rate in force at that date. The rules are being changed in this year's Finance Bill so that the tax that charities can reclaim will be calculated at the basic rate of tax for the year in which the first instalment is paid. This way, donors and charities will know from the outset at what rate tax relief will be available.
7. The consultation document for the Review of Charity Taxation, published on 9 March 1999, contains a number of options for improving and simplifying the tax system for donors and charities. As the Chancellor mentioned in his Budget speech on 9 March, one of the proposals in the consultation document is to extend the advantages of Millennium Gift Aid to apply to all charities, after the end of December 2000.
8. Media enquiries on this news release should be made to Fiona Hamilton in the Treasury Press Office on 020 7270 5185 or Jane Ashton/Clare Merrills at the Inland Revenue Press Office on 020 7438 6692/6706/7327 (Out of hours: 0860 359544).
9. Non media enquiries should be made to the Inland Revenue on 020 7 438 6420/6425 (office hours only).