Charities call for review of tax regime

The Charity Finance Directors’ Group (CFDG) has launched its election manifesto, calling for reforms in the tax system and regulations, as well as the development of a social investment wholesale bank, in order to help charities fulfil their aims.

CFDG is asking for a root-and-branch review of the charity tax regime, for fundamental reform of the Gift Aid system within one year, and for charities to be able to undertake joint ventures without attracting a VAT penalty.

A Level Playing Field also challenges the government to focus on assessing the impact of regulation on charities. One proposal is to allow both primary and non-primary purpose trading to be undertaken within charities, which would do away with the need for trading subsidiaries.

In addition, CFDG calls for improvements in service design, commissioning and funding and wants charities to be more involved in the design of service specifications and tender processes.

Finally, CFDG is asking that the government sets up a Social Investment Wholesale Bank that supports sustainable funding for the third sector, and builds on existing cross-party s support.