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December 30, 2010

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UK drive to boost charity donations

BRITAIN'S government said yesterday it is considering plans to request a donation to good causes each time a customer uses an ATM.

Ministers said they are consulting with banks on allowing customers to give money to charities each time they use a cash machine, which Britain says was pioneered in Colombia.

The government will also discuss a plan to allow shoppers who pay for goods or services using debit cards to round up the cost of purchases and donate the difference.

Cabinet Office Minister Francis Maude said the proposals are among a host of possible policies aimed at increasing donations to charities - including opening up landmark government buildings for public events, or adding a voluntary levy to orders at takeaway restaurants.

A study by the Charities Aid Foundation published this month found that about 56 percent of British adults regularly give to charity, donating an estimated 10.6 billion pounds (US$16.3 billion) each year.

But while the British public are among Europe's most generous, the country lags behind the United States, where people donate the equivalent of 1.7 percent of gross domestic product. In the United Kingdom, the public gives the equivalent of 0.7 percent of the country's GDP.

Ministers said they hope to encourage more people to give money regularly, and greater numbers to offer their time to help charities and organizations carrying out work in local communities.

"People giving time, money, assets, skills and knowledge all drive social action and help make life better for all," said Maude.

A consultation document calls on the public to consider volunteering at hospitals, schools, libraries or prisons. It claims about 3.3 million people are willing to help out, but aren't sure how to get involved.

Critics say the government is seeking to use public goodwill to limit the impact of harsh spending cuts and looking to charities to offer services that departments can no longer afford to provide.

Treasury Chief George Osborne has announced 81 billion pounds in spending cuts through 2015. The government will cut as many as 330,000 public sector jobs and trim welfare payments to families and the disabled, increasing the burden on Britain's voluntary sector.

"This is not about providing public services on the cheap," the government insisted in the consultation paper. "There are significant benefits for those who give their time - in terms of building skills, making new friends and connections, and even for their health."

Maude said his department would consult with charities and the public on the ideas until March, ahead of the publication of proposed new legislation on the charity sector.

Despite an 18-month recession in Britain that only ended a year ago, donations have held up according to information from charities.

"In spite of the recession, it would appear that levels of giving have not been hit as hard as first expected," said Louise Richards, director of -policy and campaigns at the -Institute of Fundraising.


 

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