Sir Iain Duncan Smith

Sir Iain Duncan Smith

Conservative — Chingford and Woodford Green

Speaking in the House of Commons on 3 March 2026

Debate

Small Charity Sector

Contribution

This has been an excellent debate, not least because all parties have been represented in it, and all parties have spoken with one voice. We value the incredible efforts made by local community groups and charities, but all of us also recognise that much more can be done to release them and to recognise some of the incredible schemes that they have come up with—I named a number of them. There have been many suggestions about the best way to do that. There have been comments about the need to modernise gift aid, and to uprate the thresholds of the gift aid small donations scheme, so that charities that receive small cash donations can get gift aid-style repayments of tax. That is a useful idea that has been put forward. There is also the whole idea of placed-based giving. Small charities are embedded in communities throughout the UK, and it is important that local and placed-based giving is encouraged so that smaller charities are supported and can continue delivering their vital services. I also picked up a general concern, which is quite right, about the fall-off of corporate giving in the UK towards the small charities sector. The big problem is that—forgive me, I cannot remember who made this point—something in the order of 80% of charitable giving goes to about 20% of all charities. They are the big charities that are staffed up with lots of people to lobby us and to always come in and see us. The small community groups and charities, however, that do 80% or more of the work often do not get access to that. Rewarding companies for supporting charities and community groups in their local areas would be a very good way of increasing corporate giving. Only 25% of British businesses donate to charities in the form of time, cash or goods. An estimated £4.26 billion was donated by British businesses in 2024, and that was flatlining. I say to the Minister that we need to do more to encourage a greater level of local support and giving, because philanthropic giving is vital. I mentioned in my opening remarks that we need to look at what the USA does in its tax structure for charitable giving. Particularly, we want to look at small community groups and charities benefiting from that, and raising more money given directly by those individuals, who are rewarded for that because it is a common good. This debate has been an excellent opportunity. I recommend that anybody who wants to inform themselves more about the policy work speaks to the Centre for Social Justice. All parties are welcome to look at this. I hope to have a chance at some point to meet the Minister to discuss with her any possibilities that we can raise. I have one abiding thought. Recently, we held another of our annual awards where we give out money to winning charities in six categories—money matters to small community groups and charities. I have to say that it was one of the most moving experiences that I have had. I listened to people who have grown their support groups out of tragedy in their own families and communities, and have risen to that and overcome it. Alone among all other reasons, it is not the structure or organisation, but the beating heart of small community groups and charities that helps us survive out there. It is time that we motored on in recognising them and making sure that they get a proper fair crack at what is out there to help them deliver their great services. Question put and agreed to. Resolved, That this House has considered the small charity sector.

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