What do political parties have in common with charities? 

Both are voted out by their initial supporters when they fail in their impact. Impact can be diluted when they become less relevant to their supporter’s needs. But also, when it’s clear they are helping progressively fewer supporters over time, even if many needs per supporter are still being met.

Both political parties and charities have critics and competitors who are only too happy to step into their place and offer something they think is a better solution. In short, their existential threats are relevance and impact. Without continually ticking both boxes, their future is in doubt.

What separates political parties from charities?

Political parties rely on government agencies to deliver policy initiatives and they pay little respect to the vital work that charities do to bridge the social gap. We see that when they impose tax increases and don’t exempt charities from them. Charities rely on themselves and remain battle-tested, operating on the frontline of charitable need, every day. There is no Westminster bubble for charities, nor the ability to raise taxes on their contributors. For charities, their donors are fickle and withdraw support at short notice.  For political parties, their support is ideological and lingering.

Giving charities a break, in spite of political ideology

What charities that aren’t reliant on government funding need are tax breaks. The ability to automatically claim 100% input VAT, be exempt from PAYE and NI and have all commercial trading entity profits tax exempt. This is smart business for any political party in power, since charities solve social problems efficiently that government agencies only solve inefficiently and expensively, if at all.

Simon