April Fool - HMRC stymies charity fundraising

Along with Marmite Clear, HMRC made a fool out of April the first. It was of course supposed to be the day the the tax man removed VAT exemption for charities on the design and distribution of direct mail, potentially costing the industry millions.


However, despite pressure from DMA and The Charity Tax Group no guidance was forthcoming from HMRC and charities are left directionless and unclear as to the charges that apply.


Direct mail remains one of the most effective and cost efficient forms of fundraising and donor retention for the third sector, however, HMRC is putting this important revenue stream in jeopardy, which is both unfair and irresponsible.


For more information or support about these changes Mike Lorden at DMA should be consulted.