Budget 2012: charity donations 'threatened' by limits on tax relief The threat to charitable giving appears to undermine the Coalition's efforts to get more wealthy people to donate money to charity. Sir Stephen Bubb, chief executive of the Association of Chief Executives of Voluntary Organisations (Acevo), said he was concerned the new proposals would do more harm than good. "We are worried by the cap on tax reliefs, which could end up hitting the poor more than the rich if they hit levels of donation to charity," he said. The Prime Minister has repeatedly said he wants charitable giving to be "a lot higher" as part of his vision of a Big Society. Last year, David Cameron called for more people to give to charity through their company payrolls and at cash points. He also announced a "giving summit" to bring together charities with philanthropists and financiers. But Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations said the move "really sets alarm bells ringing, as it could impact negatively on income from donations." "Eight per cent of donors give almost half of the amount that is given to charities every year, so this measure could have very serious consequences," he said. Charities are already struggling in the current economic climate, with official figures showing a two per cent drop in donations at the start of this year.