Pictured above: A Midlands Air Ambulance emergency helicopter

Midlands Air Ambulance has welcomed reforms outlined in this year's Budget which will see charities across the UK collect at least £500 million. 

The local charity, which responded to more than 3,000 emergency call outs across the Midlands last year, is set to benefit from reforms relating to both legacy giving and revised Gift Aid rules.

From next month inheritance tax will be reduced by 10 per cent for everyone who donates 10 per cent or more of their estate to charity. 

"I want to make giving 10 per cent of your legacy to charity the new norm in our country" said George Osborne, a move favoured by Midlands Air Ambulance which relies solely on public donations.

Last year approximately 40% of the Charity's annual income was funded through legacies. 

Hanna Sebright, Charity Director at Midlands Air Ambulance says "Four in every ten incidents the Charity responds to is funded by gifts from wills, so anything that encourages people to leave gifts to charity is a very welcomed move."

Mr Osborne also expects more than 100,000 UK charities to gain £240 million under the measures which would allow gift aid "on the contents of the collecting tin and the street bucket" for the first time. 

With more than 11,000 collection tins displayed at various locations across the Midlands and daily bucket collections this will have a direct and real impact on funding for the local air ambulance service. In future the first £5,000 made through small collections would earn up to £1,000 extra for the charity in added tax relief. 

It was also announced than an online system would be introduced to make Gift Aid giving quicker and easier for both the donor and Charity, reducing the need for time-consuming form filling. 

Under Gift Aid rules, charities can claim back the tax paid by donors provided that forms are filled in or the correct box on a sponsorship form is ticked. For example a cash donation of £8 from a basic-rate tax payer is worth £10 to the charity. 

Charities have estimated that they lost up to £750 million a year due to the lack of understanding about the significant difference a Gift Aid contribution can make to an individual's donation.  

"The commitment to bring Gift Aid into the 21st century is a good move by the government. This reform has the potential to bring in thousands of pounds for the Charity without anyone being out of pocket," says Hanna Sebright.

Next month the Prime Minister is also set to launch a new campaign to boost company 'payroll- giving' in a further bid to boost corporate and individual philanthropy. This kind of 'Give As You Earn' scheme has already been introduced at Midlands based companies including Land Rover and Michelin who are supporting Midlands Air Ambulance in 2011.

The Chancellor has claimed "Together these represent the most radical and most generous reforms to charitable giving for more than twenty years."

Midlands Air Ambulance celebrates its 20th anniversary this year marking two decades of airlifting seriously ill patients to hospital across Gloucestershire, Herefordshire, Shropshire, Staffordshire, Worcestershire and the West Midlands. For information on how to get involved with fundraising visit www.midlandsairambulance.com.