Philanthropy plan: donate to charity every time you pay by bank card

Banks are to adopt a system that allows people to make a small donation to charity whenever they withdraw cash.

The Government also wants shops to offer customers the opportunity to “round up the pound” when using a debit or credit card, with the extra money going to charity.

Under the proposals, anyone making sizeable charitable donations would get letters from ministers.

Any National Lottery winners who donated part of their windfall to good causes would be publicised on television.

The plans are unveiled on Wednesday in a discussion paper published by Francis Maude, the Cabinet Office minister, who wishes to foster a culture of charitable giving.

The proposals are likely to prompt accusations that ministers are hoping charities provide services to compensate for the Coalition’s public spending cuts.

Ministers will begin talks with banks in the new year over how the scheme, which operates in Colombia and Mexico, might work.

“We are arguing for new social attitudes that celebrate giving,” Mr Maude said. “Talking about what we do for good causes is often seen as vulgar. But sharing experiences can inspire others.

“Giving is too often characterised as worthy and selfless, but there’s nothing wrong with doing things for each other and repaying kindnesses.

“If we can agree as a society the values that underpin helping each other we can unlock huge potential for a stronger, bigger society.”

The Pennies Foundation charity already operates the Coalition’s proposal with retailers such as Domino’s Pizza. Ministers believe that it has the potential to generate “significant new funds”.

Public services will also be encouraged to take on more volunteers under the plans for a national volunteering website. Under-used government buildings may be opened for charities. Today, youngsters from an activity project will be allowed to use historic Admiralty House, in central London.

Under the proposals, which will lead to plans for legislation in the spring, people could also be prompted to give money when they fill in tax returns or apply for passports, driving licences and other state services. They may also be encouraged to donate over new mobile phone services.

It was not clear last night how the schemes would work and whether people would be able to specify which charities they wish to support through the automatic donations — or whether they would be given a menu of options.

Mr Maude said the Coalition was not trying to “compel” people to give. But he unveiled two schemes that would offer taxpayers’ money to match private donations.

Ministers are also studying other financial incentives that may be offered.

Schools may be encouraged to launch fund-raising campaigns for charities or new local facilities.

Local donors’ contributions to projects in the most deprived areas will be matched through a £50 million Community First Fund and £10 million match-funding will be available to voluntary projects.

Britons are already among the most generous donors in the world. This country is currently ranked as the eighth most charitable nation.

About 73 per cent of people donate money each year with individuals giving charities an estimated £10.6 billion a year.

However, Britons are much less generous at donating their time by volunteering compared with many other countries.

Ministers have concluded that individuals and businesses need to be reminded of the “warm glow” that results from helping others.

Concerns about red tape and waste are to be addressed.