Details of the Chancellor's Charity Support Announcement on April 8 2020
The Chancellor has announced that charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the Coronavirus outbreak. This will include:
£360 million direct from government departments.
This will include:
£370 million for smaller charities, including through a grant to the National Lottery Community Fund.
This will support those organisations at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice.
And a commitment from the Government to match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser later this month pledging a minimum of £20 million.
We note that the £750m package falls short of the amount of income estimated to have been lost by charities, due to the Coronavirus outbreak, which is nearer to £4bn. We await more details, but it is likely this will not include Science Centres.
The DCMS Committee had written to the Chancellor calling for support for charities providing front-line services.
ASDC urges all members to submit into the DCMS inquiry about their own charity - details on the left by 16 April.
The Charity tax group notes the following
Charities now need to know as soon as possible:
Whether they fall into these categories and will be eligible for financial support?
How much funding they will be entitled to claim and over what period?
How long it will be before this vital funding reaches their bank account?”
Clearly this funding will not be available to all charities, so other targeted measures may need to be taken including
1) adjustment to broader business support packages to make them more suitable for charities and
2) to take practical steps to allow charities to maximise existing reliefs (including on VAT, Gift Aid and GASDS) to unlock important income for charities and ease their cashflow concerns.
The Government press release notes that “Departments will now work at pace to identify priority recipients, with the aim for charities to receive money in the coming weeks. The application system for the National Lottery Community Fund grant pot is expected to be operational within a similar period of time”.
Where charitable services are devolved the UK Government has applied the Barnett formula in the normal way. The Government expect the devolved administrations to receive £60 million through the charities pot, and further significant Barnett allocations, dependent on the final proposals funded, through the direct grant pot. The Government encourages the devolved administrations to use this funding to support charities.