Through HM Revenue and Customs (HMRC), the UK Government has recently made a significant financial commitment to support the charity sector.
A total of £5.5 million in grant funding has been allocated to assist organisations that provide essential tax and benefits advice.
This initiative, managed under HMRC’s Voluntary and Community Sector Grant Funding Programme, aims to bolster the services offered by various organisations that cater to individuals who face challenges in understanding their tax obligations, have complex needs, or are digitally excluded from accessing HMRC services.
What does this funding mean for the charity sector?
The injection of funds across twelve selected organisations is a significant step in enhancing the capacity for supporting individuals with complex financial needs.
For our clients in the charity sector, this development represents a substantial opportunity to re-evaluate and potentially broaden the range of your services.
With the additional funding, charities can enhance their advisory capabilities, thereby ensuring more comprehensive support for those requiring assistance with taxes and benefits.
The initiative underscores the importance of charities in the broader financial ecosystem and by bolstering the resources available to these organisations, HMRC is facilitating a more inclusive approach to financial management and support.
Charities are now better positioned to act as crucial intermediaries, offering guidance and assistance to individuals who might otherwise be overlooked or underserved by conventional financial advisory services.
It also signals the need for heightened attention to compliance and due diligence, however.
The rigorous selection criteria and due diligence checks conducted by HMRC for grant allocation should be an indication of the increased workload that charities will have to implement to receive this funding.
The funding also presents a unique opportunity for charities to collaborate and share best practices and the diverse nature of the organisations receiving the grants — ranging from local Citizens Advice Bureaus to organisations like the Royal National Institute of Blind People — indicates the variety of approaches and specialisations within the sector.
This diversity could lead to improved service quality and innovation in addressing the financial needs of vulnerable groups through cross-charity teamwork.
The funding could encourage a more holistic and collaborative approach to financial management in the voluntary and community sector, ultimately benefiting those who rely on these services the most.
The Moore Thompson view
Looking ahead, the implications of this funding extend beyond immediate financial support.
The three-year duration of this funding, beginning in April 2024, indicates a long-term commitment to enhancing tax and benefits advice services.
From our standpoint, the move by HMRC is a commendable step towards inclusivity and support for those facing financial complexities and not only strengthens the charity sector’s ability to assist but also aligns with broader efforts to ensure equitable access to financial advice and services.
As this programme unfolds, its impact and reach will be an area that we keep a close eye on in order to provide the best advice to our clients on possible funding opportunities.