Small Donations and Fundraising Bill

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enhance and streamline provisions for small charitable donations, facilitate fundraising activities, and support the work of small and local charities.

BE IT ENACTED by the King’s Most Excellent Majesty, by and with the advice and consent of the Lords, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

Section One - Definitions

(1) For the purposes of this Act, "eligible charity" shall mean a registered charity or a Community Amateur Sports Club (CASC) as defined by Section 6(2) the Charities Act 2011, that meets the criteria specified in regulations made under this Act.

(2) "Small charitable donation" shall refer to a cash donation of £30 or less (or any prescribed amount) made to an eligible charity.

Section Two - Digital Donations

(1) The Schedule to the Small Charitable Donations Act 2012 (meaning of small donation: conditions) is amended as follows:

(2) In paragraph 1:

(a) in the heading after “cash” insert “ or contactless ”;
(b) in sub-paragraph (1) omit the words “in cash”;
(c) after that sub-paragraph insert—

“(1A) The gift must be made—
(a) in cash, or
(b) by a contactless payment.”;

(d) in sub-paragraph (3) after the definition of “cash” insert—

““contactless payment” means a payment made at a contactless payment terminal using the contactless payment facility of a card, mobile telephone or other device;”.

(3) Digital donations, received through online platforms or electronic means, shall be recognized and treated on an equal basis as other eligible small charitable donations under this Act.

Section Three - Maximum Donation Threshold

(1) The maximum annual donation threshold for small charitable donations, as defined in Section 1(6) of the Small Charitable Donations Act 2012 shall be increased from £5,000 to £10,000.

(2) The Secretary of State shall have the authority to review and adjust the maximum threshold periodically to ensure its alignment with economic factors and the needs of small charities.

Section Four - Streamlined Administrative Process and Awareness

(1) Measures shall be implemented by the Secretary of State by way of Statutory Instrument to simplify and streamline the administrative requirements for charities to claim Gift Aid on small donations.

(2) The Secretary of State shall establish an accessible and user-friendly online portal for charities to submit their claims efficiently and effectively.

(3) The Secretary of State shall initiate a national campaign to raise awareness of the Small Charitable Donations Scheme, targeting both donors and small charities - with resources and guidance being provided to small charities to help them to effectively promote the scheme and encourage donations. Delivery and Key Performance Indicators are to be monitored by the relevant Secretary of State.

Section Five - Evaluation and Reporting

(1) The Secretary of State shall conduct annual evaluations of the Small Charitable Donations Scheme to assess its effectiveness and impact, commencing from the first of January 2024.

(2) Reports shall be published annually thereafter the first of January 2024, outlining the findings of the evaluations and including recommendations for further improvements and adjustments to the scheme.

Section Six - Commencement, Short Title, and Extent

(1) This Act shall come into force three months after receiving Royal Assent.

(2) This Act may be cited as the Small Donations and Fundraising Act 2023.

(3) This Act extends to England only.

This Bill was written by His Grace the Most Honourable Sir /u/Sephronar KG KCT GBE LVO PC MP MSP FRS, the 1st Duke of Hampshire, 1st Marquess of St Ives, 1st Earl of St Erth, 1st Baron of Truro on behalf of His Majesty’s 33rd Government, with Section 2(1) and (2) being taken from the IRL Small Charitable Donations and Childcare Payments Act 2017.

Cited References and Legislation:

• Small Charitable Donations and Childcare Payments Act 2017

• Small Charitable Donations Act 2012

• Charities Act 2011

Opening Speech:

Deputy Speaker,

Charities are the bedrock of our communities, providing vital support and services to those in need. Our communities' foundation is made up of charities, which offer essential assistance and services to individuals in need. But they frequently have a difficult time getting the money they need to continue operating. Recognising this, I am proposing this comprehensive Bill as a crucial step towards enhancing the legal foundation for modest charity contributions and fundraising efforts.

First of all, we acknowledge how much digital technology has changed contemporary culture. Therefore, this Act broadens the definition of qualified contributions to include digital donations made via electronic and online platforms. Thus, we make certain that smaller organisations can utilise the full potential of digital fundraising methods to reach a wider audience and increase their financial sustainability.

This Bill also aims to give the Secretary of State (me!) the power to introduce regulations whenever they see fit to address the administrative costs that charities must bear when claiming Gift Aid on modest contributions. I aim to later propose taking steps to shorten the procedure and creating an easily navigable online site where organisations can quickly submit their claims. By reducing red tape, organisations will have more time and money to devote to their primary goal of assisting their communities.

Additionally, we understand how critical it is to increase public knowledge of the Small Charitable Donations Scheme. As a result, this Act creates a government-led nationwide awareness campaign to promote the programme among donors and small charities alike. We enable charity to effectively market the programme and promote increased donations by offering advice and tools.

This Bill represents our Government's consistent dedication to assisting small charities in their vital work. We give them the ability to flourish, empower communities, and have a long-lasting effect on the lives of those they serve thanks to the reforms suggested.

This division will end at 10pm on the 5th July.