Call for abolition of VAT on charities

Seventy-one per cent of respondents in a recent survey on public attitudes to charity say the Government should meet its overseas development aid target of 0.7 per cent of GDP by 2007.

A majority also expressed confidence in the work of Irish charities, while 72 per cent said "improving tax incentives" would motivate more people to make charitable donations.

The Community Foundation for Ireland, which commissioned the report, said the findings supported the case for tax reform in next week's Budget, including the abolition of VAT on charities.

While respondents expressed support for new tax incentives for philanthropists, just 42 per cent said they were aware of the existing tax break for charitable donations of over €250.

Forty-three per cent of respondents said they regularly contributed to at least one charity and a further 37 per cent said they occasionally did so. Half contributed up to €11 a month, with just 11 per cent contributing more than €21 a month.

The foundation said this finding indicated that charities were getting tax relief on a small proportion of donations, and it called on the Minister to reduce or eliminate the €250 threshold.

It also called on Mr Cowen to reform the benefit scheme so that property, stocks and shares which were donated to charity could benefit from the tax break.

The survey of 1,071 adults by Viewpoint Solutions took place at six locations in Dublin between November 3rd and 16th last. As a result, it predated the Government's announcement in last week's Estimates that it would not meet it commitment to allocate 0.7 per cent of GNP to overseas development aid by 2007.

Asked was it "important" that the Government met this target, 50 per cent of respondents strongly agreed, 21 per cent agreed and 14 per cent expressed no opinion.

Ms Tina Roche, chief executive of the foundation, said the Government had a real opportunity in the Budget to assist the growth of philanthropy. "We have seen in other countries where tax concessions have been a key catalyst in increasing awareness of and contributions to philanthropic causes." She added: "Donors don't want to see up to 21 per cent of their contributions being absorbed by VAT. They want to see their contributions go directly to those most in need."