Following the reduction in the rate of income tax announced in the Budget, the value of a gift under a deed of covenant is now increased by approximately 63% (instead of 70%). The following table shows the effect of the income tax rates for 1971/72.

Annual subscription £ 1.00 2.00 3.00 5.00 10.00 50.00 100.00 Income tax reclaimed at 38.75 in the £ £ 0.64 1.27 1.90 3.17 6.33 31.64 63.27 Total benefit to the institution £ 1.64 3.27 4.90 8.17 16.33 81.64 163.27 We cannot overemphasise the importance of covenants as a means of providing increased regular income to meet the rising costs of running the life-boat service. They are trouble-free in use and an easy way by which existing supporters can increase their help. It is hoped that the covenant way of giving will appeal to those who already subscribe as well as to those who are considering doing so. Branches and guilds, too, can increase their revenue considerably without much extra effort by encouraging the use of the covenant method..