Gift Aid freeze at 22 per cent until 2011

Chancellor retains 22 per cent transitional rate for Gift Aid for the next three years, claiming income protection for charities of around GBP300m.

Though many will celebrate the announcement of a reduction in the basic rate of income tax to 20 per cent on 5 April, charities were in fear of losing more than GBP90m per year as a result of the rate cut's impact on Gift Aid, according to CAF chief executive, John Low.

The Institute of Fundraising (IoF) also welcomed Alistair Darling's Budget announcement, but warned, "It is vital that the sector and Government work closely together to ensure that there are ways in which organisations can generate income to replace the transitional relief when it comes to an end in 2011."