Charity tax guidance 'could benefit businesses'

Date: 9th November 2009

Government moves to highlight the tax savings for businesses that donate money to charity have been welcomed by a financial expert.

Phil Perry, director of Ark Financial Planning, said that the new guidance could prove "beneficial" to smaller firms.

Last week, minister for the Cabinet Office Tessa Jowell unveiled a new document for businesses that clearly lists the various charity-related tax incentives on offer to the private sector.

These include savings connected to donating shares and equipment directly to not-for-profit organisations and the various ways in which businesses and charity can enter partnerships.

Mr Perry commented: "If you are running a business of any description, anything that gives you a tax advantage is always going to be beneficial.

"People would much rather pay to a charity than they would to the tax man ... If [the guide] is making them aware of something that they can or can't do, then there has to be a benefit behind it."

Speaking last week, Ms Jowell said that the benefits of partnerships between charities and businesses did not just extend to fundraising, but could also enhance staff development.

Posted by Emma Clarke