As promised in last year's budget, Prime Minister David Thompson has outlined his government's plans for encouraging philanthropy in Barbados.

He has identified the "time consuming" and "long bureaucratic process" as being a major reason why many charities do not seek to raise funds through covenants.

Hence the government is going to implement a number of recommendations made by the Inland Revenue Department to make the process easier.

These include:
- Abolishing the covenant rules and allowing official donation receipts in their place.

- Expanding the Income Tax Act to include other organisations which can accept covenants.

- Small organisations will not be required to file legal documents with the Corporate Affairs and Intellectual Property Office (CAIPO) in order to register as a benevolent organisation. A letter from the appropriate Ministry will be accepted.

- Cash donations and property will be allowed for tax purposes.

- Donations of more than $1 million will be carried forward for five years with restrictions on how much can be claimed each year.