In the UK Parliament, a speech is read by the head of state, the Queen at the beginning of a new parliamentary session outlining the government's legislature plans...

It's followed by a debate in parliament and gives a strong indicator of the political direction of the government.

The Queen's Speech has some interesting news for charities...

Of the legislature plans announced yesterday the Queen revealed:

"A bill will be introduced to reduce burdens on charities, enabling them to claim additional payments on small donations..."

This refers to the proposed Small Donations Bill that plans a new system of add-on payments and red tape reductions for charities, creating incentives for small cash giving.

What's the big deal about plans to help generate small charity donations outlined in the Queen's Speech?

The news on small donations could be big news for many small charities operating across the UK...

In a nutshell the Small Donations Bill is for donations of less than £20, allowing charities to claim back 25p for every pound collected across the UK, up to a limit of £5,000.

The bill operates without individual paperwork and so is intended to ease the admin burden...

The Small Donations Bill outlined in the speech has been welcomed by the National Association for Voluntary and Community Action (NAVCA), the national charity supporting voluntary and community groups across the country.

Neil Cleeveley, Director of Policy and Communications, says:

"NAVCA is delighted to see the Small Donations Bill in the government's legislative plans. This measure to get top-up payments similar to Gift Aid for small cash donations could make a significant difference to thousands of local charities."

NAVCA say they look forward to seeing more detail on the policy but the idea looks worthwhile.

That's because the majority of charities are small and collectively make an enormous difference to society...

"This looks like a measure that could help the government achieve its aim of making running a charity easier," adds Mr Cleeveley.

Significantly, HM Revenue and Customs (HMRC) points out that charities will be able to claim top-up payments on up to £5,000 of small donations without needing Gift Aid declarations...

From April 2013, charities will be able to claim the Gift Aid-style top-ups from HMRC without needing to get a Gift Aid declaration from donors.

It's a welcome reform of an often annoying admin job that can draw on time and resources for non-profits, especially for small charities benefitting from lots of small donors, community recycling shops for instance.

As such the Small Donations scheme could be a vital boost to the income of charities at a time when especially many small charities are struggling to maintain their services...

Other grass roots areas of fundraising to benefit from the scheme include community fundraisers involved in street collections during fun runs or sporting events like football and cricket matches.

The scheme means that fundraisers can claim their Gift Aid-style payments on their small bucket donations without having to collect donor details...

Consultations are still taking place with charities, community and sports groups on the policy until May 25.

Charities must have a three-year record of successfully claiming Gift Aid and continue to make Gift Aid claims to qualify...

A public meeting will also take place on May 17 in London for any outstanding questions and answers about the scheme.

The plan, if all goes well, promises to be a good incentive for fundraising at the community level and also a reminder that the majority of charities across the UK are small organisations...

And that collectively these small charities, with their many small donations, add up to a big difference for a whole range of worthy causes...