Page last updated at 09:56 GMT, Tuesday, 27 November 2012

Small Charitable Donations Bill

A bill to reform the Gift Aid scheme for small donations has completed all of its stages in the House of Commons.

Winding up the third reading of the Small Charitable Donations Bill on 26 November 2012, Treasury Minister Sajid Javid said the bill could result in additional government funding of £100m a year to charities and Community Amateur Sports Clubs (CASCs).

The bill introduces the Gift Aid Small Donations Scheme and was announced in the 2011 Budget.

The purpose of the scheme is to enable charities and CASCs to claim a gift aid-style payment on small cash donations up to £20 where it is often difficult to obtain a gift aid declaration.

In general, eligible charities and CASCs will be able to claim top-up payments on up to £5,000 of small donations each year.

Mr Javid said it promised "significant new opportunities" for charities, and that the bill would "complement gift aid, not replace it".

The bill has broad cross-party support, and shadow treasury minister Cathy Jamieson welcomed an assurance from the government that a review of certain aspects of the bill would be carried out in three years time.

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