Things interested observers should look out for following of the charity tax U-turn:
1) The number of ‘philanthropists’ who stropped publicly about the six figure sums they were ‘planning’ to donate to charity but reconsidering because of the tax who now actually – really truly – do go on to make a six figure donation (and to a charity which isn’t either run by their mates, or their child’s school).
2) The proportion and the total amount of funding to charities which comes from those higher rate earners who are eligible for this tax relief.
3) The proportion and total amount of funding from high-net-worth philanthropists to those charities which directly help those vulnerable people who are worst affected by the impact of the Government cuts. A comparison with funding from the same group of donors to those charities which don’t target those who are most vulnerable and in greatest need would be useful.
4) The amount of the ‘tax relief’ which itself is donated to charity, compared with the amount of the tax relief which goes back into the pocket of the donor.
5) The number of new charities created in response to the removal of the charity cap but retention of the cap on other forms of tax relief, which do not target support and services to those who are vulnerable and in need but which provide a ‘home’ for charitable donations which enable ‘philanthropists’ to reduce their tax liability. And the nature of the new charities created.
I’m sure you can think of other indicators it would be fun to watch.