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CHARITY TAX BREAKS MAY INCREASE DIRECT MARKETING SPEND

News, 01 January 2000

THE GOVERNMENT has announced new tax concessions for UK-based charities by zero-rating VAT on charity advertising and ad production costs. A second, arguably greater, concession is the decision to contribute an additional 28p for every pound donated to charity by taxpayers, effective as from April.

Direct marketing agencies are cock-a-hoop, as the move is thought certain to increase DRTV and other direct marketing spend. Says John Watson, chair of WWAV Rapp Collins: ‘These changes will have an ex-traordinary effect on direct fundraising. The value of every donor recruited suddenly increases dramatically.’