Earlier this month, the chancellor said he wanted to ‘encourage people who are in a position to do so to donate more to the public good’, and advisers believe reclassifying sponsorship rules for charities is an obvious reform to make.
‘A contribution made to a charity in return for a company’s name being associated with the charity is treated as sponsorship and taxed as services income.
This sponsorship could be treated as a tax-free donation instead,’ said Pesh Framjee, head of Deloitte’s not-for-profit unit.
Any moves to encourage philanthropy will be welcomed by organisations such as the UN, which has had to curtail food aid because of rising food prices.
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