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Simple reforms could unlock £74 billion for charity

Cass Professor proposes schemes to make charitable giving more attractive in the UK

Monday, 11 January, 2010

A new report from the Centre for Policy Studies led by Paul Palmer, Professor of Voluntary Sector Management at Cass, proposes two straight forward reforms that could unlock for charity some of the £740 billion held by reasonably well off Britons.

The first reform would enable individuals to set up 'Remainder Trusts' in which sums of £50,000 or more could be settled. Donors would retain control over the capital, and could reclaim it if they wished, during their lifetime.
The second reform would be the creation of a new type of charity, the 'Personal Charitable Trust'. These would enjoy the benefits of "a light touch regulation" free of many of the onerous reporting burdens imposed on larger charities. They would also offer donors the option of anonymity.
Professor Palmer believes that, if implemented, these reforms could unlock up to10% of the £740 billion held by 820,000 Britons with a net wealth of more than £500,000.
Professor Palmer said: The current economic difficulties are likely to put pressure on the level of public donations. At the same time constraints on government spending will also constrict charities’ income in the years ahead. With this in mind it is vital to find ways of making charitable donations more attractive.
The report can be downloaded from the Centre for Policy Studies website

Permanent link to this story: https://www.cass.city.ac.uk/news/2010/january/simple-reforms-could-unlock-74-billion-for-charity

Paul Palmer, Professor of Voluntary Sector Management at Cass

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