Is Uk Philanthropy Facing A Crisis?

By Author: William Pollard
Total Articles: 156
Comment this article

The Chancellor’s announcement in the 2012 budget regarding tax relief caps has raised concerns amongst charities that the cap will result in a decrease in charitable donations.

In effort to curb legal avoidance, the Chancellor has capped tax relief at £50,000, or a quarter of the earner’s income. Nearly 9 out of 10 charity bosses fear this will have an impact on the amount of donations they receive, a figure back up by the Philanthropy UK website, which states that 8 out of 10 philanthropists share this view.

The UK has a great tradition of charitable support and giving, which boomed in the Victorian era when the concept of the “deserving” and “undeserving” poor was formed. Organisations such as The Salvation Army and The Cooperative were set up to help and empower the deserving poor, who it was believed could lift themselves out of poverty and difficulties. A trend of middle class charity also emerged as workers’ rights became a bigger topic, with bosses offering charity to their workforces.

Philanthropy in the Western world became something of a standard practice ...
... for the wealthy, with high profile givers leading the way. Philanthropists such as Henry Ford and William Wilberforce in the US and UK respectively flew the flag for charity and undoing social inequality, and in more recent years characters such as Bill Gates, JK Rowling and Warren Buffet have become known as much for their charitable donations and support as for their other endeavours.

During the financial crisis, capitalism and banking in particular suffered something of an image problem, and the recession plunged many into difficulties and poverty. Philanthropy increased within private banking, as those in private banking jobs advised clients on charitable activities as a worthy and financially rewarding endeavour, and banks undertook their own community projects.

However it is now feared that the cap on tax relief for donations will hit charities hard and reduce the number of large donations they receive.

As specialists in finance jobs AP Executiveoffer expertise and experience in a range of financial services sectors, and work in both onshore and offshore markets. Visit http://www.ap-executive.com/uk/en/jobsectors/financial-services/wealth-management/for more information.