Forum Brief: Charitable donations

A government plan to persuade companies to give to charity has backfired, according to new research by the Charities Aid Foundation.

Chancellor Gordon Brown indicated that changes to tax relief, announced in his 2000 budget, would boost charitable donations.

But, according to the research, within a year of the reforms being put in place corporate donations fell by £78 million.

Forum Response: SANE

Marjorie Wallace, chief executive of SANE, told ePolitix.com: "Like most other charities, SANE is profoundly disappointed that initiatives, far from encouraging companies to give more, have actually meant less corporate giving.

"With the drying up of other sources of funding, this has meant a serious loss of income, putting valuable services at risk."

Forum Response: RSPCA

A spokesman for the RSPCA told ePolitix.com: "The RSPCA is not a great recipient of the sort of corporate donations referred to but companies are obviously having a hard time with stock value losses and a potential slowdown in the economy and will be looking to review their charitable associations anyway.

"It is unfortunate that a potentially beneficial tax change in a part of their business which is not always top of mind should this have coincided with more pressing concerns."It's a difficult time for all at the moment, but well run charities will weather the storm in the same way that well run companies will. The sad out come though is that many charity beneficiaries across the full spectrum of charitable work will not receive the help they need."

Forum Response: Charity Commission

A spokesman for the Charity Commission told ePolitix.com: "Charities can benefit from returning to their treasury management policy. In particular, diversification and money management issues are well worth evaluating periodically.

"We have recently authorised the establishment of a new Common Investment Fund which will invest in a diversified portfolio of 25 different hedge funds. Hedge funds are not for everyone, but when used with care, can provide an extra degree of diversification."

Forum Response: Institute of Directors

A spokesman for the IoD told ePolitix.com: " The decline in corporate charitable donations probably owes more the current difficult economic conditions than a growing parsimony among UK companies.

"Market economics has never been about the unbridled pursuit of self-interest. Philanthropy should play an important role in corporate decision making. Businesses know that, ultimately charity is good for business. "

Forum Response: The Disabilities Trust

David Eggleston, marketing and fundraising manager at the Disabilities Trust, told ePolitix.com: "It is obviously disappointing to see the downward trend in charitable donations from companies, as revealed by the CAF research.

"However, it is worth pointing out that whilst offering potentially lucrative returns, currently only five per cent of total charitable giving in the UK comes the corporate sector.

"Charities like the Disabilities Trust need therefore to be alive to the current climate which requires a greater emphasis on developing more sustainable, long-term partnerships with companies, rather than relying on philanthropic giving, in order to achieve meaningful returns."

Forum Response: British National Temperance League

A spokeswoman for BNTL told ePolitix.com: "We don't raise funds from corporates as we rely purely on individual donations and investments. However, while attending the charities aid foundation conference last week, I noticed that several charities were commenting on the recent fall on corporate donations."

Forum Response: Shelter

Liz Monks, head of fundraising at Shelter, said: "The economic downturn has meant charities have to be better and more pro-active in trying to stimulate corporate giving, with the bigger organisation in the sector focusing on developing 'partnership' arrangements with businesses.

"We are having to invest in more senior and better qualified staff in an effort to target what is a diminishing pot."