Philanthropy on Darling Budget agenda

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.

To read more click here