Steve Brine has welcomed the introduction of a Government Bill enabling charities and community sports clubs to claim Gift Aid style payments on cash donations.
The Small Charitable Donations Bill, which will legislate for the scheme, will commence in April 2013, and allow the charities to claim the payments without the need for a Gift Aid declaration.
Chloe Smith, Economic Secretary to the Treasury, said: "The Government is committed to encouraging charitable giving and ensuring philanthropy in the UK continues to thrive and grow. The 2011 Budget announced a package of reforms to encourage more giving through the tax system, by different donors from all walks of life. The Gift Aid Small Donations Scheme forms a key part of that strategy
"At the moment, charities and CASCs can find it difficult to claim Gift Aid on donations collected in certain circumstances, where donors may be reluctant to stop and fill out Gift Aid declarations. This means that charities and CASCs are currently missing out on potential income.
"From April 2013, charities and CASCs will be able to claim top-up payments of 25 pence for every £1 collected on small cash donations of £20 or less received through fundraising activities, such as local charity events and bucket collections. The scheme is designed to allow top-up payments to charities and CASCs on the donations for which they cannot easily get a Gift Aid declaration. It will supplement the main Gift Aid scheme, which provides over £1 billion a year in additional income for the charitable sector."
It is estimated that this new scheme will unlock around £100m a year by 2015-16 of additional payments to charities and CASCs collecting donations in the UK – a significant increase in income, particularly for smaller charities.
Steve Brine said: "I truly welcome this news, and this issue is something I have long campaigned for, even before I became an MP in 2010. Speaking about Winchester & Chandler's Ford in particular, we all know how many small charities we have here, and just how hard they work, and I am sure they will share my delight at this step."