The Department for Culture, Media and Sport (DCMS) has told the museum sector that the Treasury will not consider further tax breaks until full use is made of Gift Aid.
At a meeting on 29 May to discuss Gift Aid, representatives from the Association of Independent Museums, the National Museum Directors' Conference and the Museums Association were told by DCMS officials that failure to make proper use of Gift Aid was costing the sector about £20m a year. This was the reason for the Treasury's reluctance to consider further tax breaks.
But Museums Journal understands that the Treasury is carrying out research into Gift Aid with a view to announcing improvements and simplifications to the scheme in the November pre-budget report. Gift Aid will also be discussed at the government's summit on corporate giving and philanthropy in October.
Rebecca Jacobs, museum development officer at the Museums Association, said: "Private giving is an essential source of income for UK museums. In the past year, HM Revenue and Customs has improved the system of Gift Aid, working to reduce inconsistencies and supporting organisations to meet audit requirements. We would encourage more museums to take advantage of this much-improved opportunity."
A DCMS spokesman said: "In common with the wider charitable sector, museums and galleries are not securing optimum benefit from
Gift Aid, for a number of reasons.
"We are exploring, in partnership with our key stakeholders, how we can strengthen the take-up and operation of Gift Aid in our sectors."
At a meeting on 29 May to discuss Gift Aid, representatives from the Association of Independent Museums, the National Museum Directors' Conference and the Museums Association were told by DCMS officials that failure to make proper use of Gift Aid was costing the sector about £20m a year. This was the reason for the Treasury's reluctance to consider further tax breaks.
But Museums Journal understands that the Treasury is carrying out research into Gift Aid with a view to announcing improvements and simplifications to the scheme in the November pre-budget report. Gift Aid will also be discussed at the government's summit on corporate giving and philanthropy in October.
Rebecca Jacobs, museum development officer at the Museums Association, said: "Private giving is an essential source of income for UK museums. In the past year, HM Revenue and Customs has improved the system of Gift Aid, working to reduce inconsistencies and supporting organisations to meet audit requirements. We would encourage more museums to take advantage of this much-improved opportunity."
A DCMS spokesman said: "In common with the wider charitable sector, museums and galleries are not securing optimum benefit from
Gift Aid, for a number of reasons.
"We are exploring, in partnership with our key stakeholders, how we can strengthen the take-up and operation of Gift Aid in our sectors."
