Most of the RNLI’s UK supporters boost their donations by using Gift Aid, which allows the charity to claim back the basic rate tax that donors have already paid on donations. This brings in a very large amount indeed (about £4M annually) – but this year’s Budget brought unexpected bad news for donors and charities alike.

A reduction in the basic rate of tax meant that charities would be able to claim only 25p for every pound donated, rather than the 28p they could claim previously.

However, following tireless lobbying from the Charity Tax Group (CTG), of which the RNLI is a founding member, the Government has agreed to pay the difference until the end of the 2010–11 tax year. This decision means a saving for the RNLI of £400,000 a year for the next 3 years – and you thought tax law was boring!

RNLI Head of Financial Management Darren Spivey says: ‘The RNLI processes around 55,000 Gift Aid forms each year, which costs both time and money. Meanwhile, donors who would be more than happy to allow charities to reclaim their tax may be put off by the administration. We are lobbying for a simpler opt-out scheme, rather than an opt-in, whereby donors would only complete a form if they did not wish the charity to reclaim the tax on their donation. This would increase income for the RNLI and reduce costs for charities and HM Revenue and Customs, which is what Gift Aid should be all about.’

If you are one of the few who has not signed up for Gift Aid yet or has a covenant instead, please telephone Supporter Care on 0845 121 4999.