‘Extend tax break to the voluntary sector’

The tax break on donations to the Community Chest Fund should have been extended to voluntary organisations, the commissioner and the council for voluntary organisations feel.

Notwithstanding calls made last year to extend the exemption, the government last week announced it was doubling the financial concession to CCF benefactors.

Finance Minister Edward Scicluna announced in his Budget Speech that companies that donated more than €2,000 to the CCF would save tax on 100 per cent of the amount given – up from 50 per cent last year.

It was “unfortunate” that the tax break was not extended to voluntary organisations and the sector, the Commissioner for Voluntary Organisations, Kenneth Wain, said yesterday.

Prof. Wain said the CCF was not itself a voluntary organisation as defined by the Voluntary Organisations Act (2007) because it was not autonomous of the State as required by law.

The CCF was chaired by the President of Malta, so the budgetary measure could not be said to have privileged the voluntary sector, he added.

‘Voluntary organisations need donation tax break’

“I am disappointed that the sector or, more accurately, those voluntary organisations enrolled and compliant with the law and, therefore, subject to regulation, have not been rewarded for their enrolment.

“Once more, despite last year’s protests and the efforts of the Council for the Voluntary Sector, they have been excluded from this tax benefit, small as it is,” Prof. Wain said.

He had already appealed for the extension last year, a call that was echoed by the council.

The council’s chairman, Nathan Farrugia, yesterday reiterated that the break was a positive step and it should be turned into an even greater idea by expanding it to voluntary organisations.

Once more, despite last year’s protests they have been excluded from this tax benefit, small as it is

Over the past months, the council continued pushing for a level playing field and voiced its concerns with the government. Such a level playing field would help voluntary organisations, especially those surviving on donations, to remain sustainable, he said.

The concern was expressed by other NGOs contacted by this newspaper.

Acknowledging the CCF’s good work, CEO Antonello Gauci said Inspire, along with a number of other organisations, also benefitted from CCF funds. However, it would have preferred to see a level playing field.

“Corporate donations are an important part of the work of every organisation. You need to persuade corporations to donate to cover your expenses and extending the scheme would have helped us to do that,” he said.

Also applauding the work of the fund, Din l-Art Ħelwa president Maria Grazia Cassar said tax incentives should be equal to all charities, including NGOs that did philanthropic work.

More initiatives, such as the mention of sponsors in the media, would go a long way to encouraging donations, she added.

When contacted, Puttinu Cares CEO Rennie Zerafa said he believed the CCF should be the top priority because it covered a wide spectrum of needs and causes.

However, Puttinu Cares had great needs too and, every month, between 60 and 80 patients received treatment in the UK, where the voluntary organisation had 19 apartments in Sutton.

Puttinu Cares, which has a €7 million project for apartments in central London in the pipeline, relies heavily on donations and does not always manage to make ends meet with its funds.