Museums will lose revenue under new gift aid guidelines
A new scheme for claiming gift aid is set to cost independent museums thousands of pounds in lost revenue.
HM Revenue and Customs (HMRC) has brought out guidelines for attractions with charitable status that want to claim gift aid on admissions, in time for a change in the law governing donations in April next year.
Gift aid allows for visitors to make a donation instead of paying an admission charge. This donation can then be reclaimed in tax. Under the new guidelines, however, the visitor must make a donation of at least 10 per cent more than the admission charge, or a donation that secures admission for 12 months.
Ken Robinson, the chairman of Attractions Gift Aid Liaison Group (AGALG), said: 'Bearing in mind the scheme was to be abolished, this is a victory, although the new rules are more complicated.'
This view seems to be prevalent across the independent sector. Bill Ferris, the chairman of the Association of Independent Museums, said he thought the victory had a slightly 'hollow ring' because there was nothing wrong with the previous scheme, but he added that it was good to have something workable in its place.
There is some consolation in the scheme for Fishbourne Roman Palace (FRP) in Chichester, which will still be able to use the £16,000 new tills that were specially configured to account for gift aid shortly before the change in the law was announced.
John Manley, the chief executive of Sussex Past, which oversees FRP along with five other museums, described the scheme as 'a bit of a dog's breakfast'.
He predicted the scheme will cost the organisation nearly £20,000 a year in addition to the cost of retraining staff and changing the promotional literature and signage around the museum.
Other museums will be harder hit. Robert Rhodes, the financial controller of Harewood House in Leeds, thinks the museum will lose £30,000 of revenue next year, while Ironbridge Gorge Museums in Shropshire could lose £50,000, according to the chief executive, Glen Lawes.
Ironbridge has already made three redundancies and abolished three posts. Lawes also warned that the museum 'may have to reduce staff numbers', and said the gift aid changes were 'an important part of this analysis'.
Judy Aitken, the Museums Association's policy officer, said: 'Although not as bad as we feared, largely thanks to the level of awareness-raising work done by AGALG and others, the proposals still leave many museums with a big task on their hands - persuading visitors to come on board with the new scheme.'
The AGALG has brought out a logo designed 'to build awareness', said Ken Robinson, 'so people will get used to "giving a little to help a lot".'
For details, visit: www.hmrc.gov.uk/charities/chapter3-insert.htm
Patrick Steel
Gift aid allows for visitors to make a donation instead of paying an admission charge. This donation can then be reclaimed in tax. Under the new guidelines, however, the visitor must make a donation of at least 10 per cent more than the admission charge, or a donation that secures admission for 12 months.
Ken Robinson, the chairman of Attractions Gift Aid Liaison Group (AGALG), said: 'Bearing in mind the scheme was to be abolished, this is a victory, although the new rules are more complicated.'
This view seems to be prevalent across the independent sector. Bill Ferris, the chairman of the Association of Independent Museums, said he thought the victory had a slightly 'hollow ring' because there was nothing wrong with the previous scheme, but he added that it was good to have something workable in its place.
There is some consolation in the scheme for Fishbourne Roman Palace (FRP) in Chichester, which will still be able to use the £16,000 new tills that were specially configured to account for gift aid shortly before the change in the law was announced.
John Manley, the chief executive of Sussex Past, which oversees FRP along with five other museums, described the scheme as 'a bit of a dog's breakfast'.
He predicted the scheme will cost the organisation nearly £20,000 a year in addition to the cost of retraining staff and changing the promotional literature and signage around the museum.
Other museums will be harder hit. Robert Rhodes, the financial controller of Harewood House in Leeds, thinks the museum will lose £30,000 of revenue next year, while Ironbridge Gorge Museums in Shropshire could lose £50,000, according to the chief executive, Glen Lawes.
Ironbridge has already made three redundancies and abolished three posts. Lawes also warned that the museum 'may have to reduce staff numbers', and said the gift aid changes were 'an important part of this analysis'.
Judy Aitken, the Museums Association's policy officer, said: 'Although not as bad as we feared, largely thanks to the level of awareness-raising work done by AGALG and others, the proposals still leave many museums with a big task on their hands - persuading visitors to come on board with the new scheme.'
The AGALG has brought out a logo designed 'to build awareness', said Ken Robinson, 'so people will get used to "giving a little to help a lot".'
For details, visit: www.hmrc.gov.uk/charities/chapter3-insert.htm
Patrick Steel