Charity
Charity

Nothing is as constant as change, or so they say. Even something as old and straight forward as charity seems to have undergone a metamorphosis in modern times. Charity used to involve selfless giving. People used to give to help others, not for any personal benefit. Indeed, many insisted on giving anonymously. Some still do. But not if they want a tax deduction. In their endeavour to encourage charitable donations many governments have made donations to charity tax deductible. This just goes to show how considerate our political masters are.

This particular tax exemption was created to make society a fairer place by encouraging people to donate to charities. Like all tax exemptions there might be some cost to society from the exemption. It adds to the size and complexity of the legislation. It increases the amount the Government will have to raise from somewhere else. So we pay higher rates of tax in order to allow charities to maintain their tax-exempt status. But it is worthwhile, because it encourages us to give to worthy causes. That’s what governments do when they create this exemption in their tax codes. Presumably the additional givers are not donating for selfless reasons, but for the rebate.

I hear you say that there is something odd here. Why would people give money away to get less back in the form of tax deductions. Well of course they generally will not. But the deduction reduces the comparative cost of giving to charities and thereby increases the amount they get. Economic rationalism strikes again. It’s odd that those who rail against our consumerist society and the influence of economic rationalism do not call for the scrapping of charitable rebates. Presumably it has nothing to do with the preponderance of the great and the good on charity boards. There is nothing like a spot of fund raising to bring out the best in a CEO’s spouse. For some reason working for a living does not have the same kudos as working for a charity. At any rate, people are now giving for the pleasure gained from giving to a worthy cause and because part of that pleasure is almost free. This “almost free” part being the component of the donation that they get back in their tax rebate. Who says nothing is for free anymore?
So having a tax deduction for charitable donations increases the complexity of the taxation legislation and nominal rates of tax. This is a small price to pay. But this worthy distortion of the tax code has other more insidious effects. It creates a very strong incentive for bodies to register as charities. After all, what better way to avoid paying taxes? But of course the bureaucrats are wise to that trick. It’s not so easy to register with the tax office as a religious or charitable body. We can’t have just anyone legally avoiding taxes.

Now the simple tax exemption has resulted in yet more red tape. Legitimate charities have increased compliance costs in demonstrating that they exist for selfless, rather than selfish reasons. That they are not just a business trying to avoid taxes in the simplest possible manner. The government bureaucracy is not just more powerful as a result having gained the rite to determine what is or is not a charity, but larger. People are involved in assessing and monitoring applications for charitable status. These people could be doing something that actually increased societies wealth. Perhaps by employing people, who instead go to soup kitchens or rely on charity shops. But oh no. Now they are busy monitoring people’s applications to become a registered charity. Some might even be writing minutes to other public servants on how processes could be streamlined or policy amended.

Clearly there are significant costs to society from providing a tax exemption for charities. Maybe they outweigh the benefits, maybe they do not. But what is really interesting is why so few politicians ever stand up and call for the exemption to be removed. Surely some must perceive the cost as greater than the benefit. A cynic might examine the status of political parties, think tanks and other political fund raising bodies. They might find that bodies that donate or support politicians’ re-election campaigns are often registered charities and conclude that the politicians have a vested interest in maintaining their tax-exempt status. But I suspect the cynic would be being too clever by half.
The reason politicians tend not to get on their high horse and call for a scrapping of tax exemptions for charities is that they would be crucified by the media if they did so. Abolishing tax exemptions might stimulate economic activity and lead to fewer poor and unemployed people. But the only real way of helping the poor is to give them a handout; not better prospects of getting well paid work. Furthermore, not trying to get the government to help is proof positive that you don’t care about the issue.



43 Comments
  1. 857373 791686Currently it seems like BlogEngine could be the very best blogging platform out there appropriate now. (from what Ive read) Is that what you are employing on your weblog? 255147

  2. 855701 188418Any way Ill be subscribing to your feed and I hope you post once more soon. I dont believe I could have put it far better myself. 749608

  3. 488013 930923Hi! Someone in my Facebook group shared this website with us so I came to check it out. Im definitely loving the information. Im book-marking and will be tweeting this to my followers! Outstanding blog and wonderful design and style. 987393

  4. 377013 218642I discovered your blog website on google and check a couple of of your early posts. Proceed to keep up the outstanding operate. I just extra up your RSS feed to my MSN News Reader. In search of ahead to studying extra from you in a whilst! 867118

  5. 244888 415779I took a break to view your write-up. I discovered it extremely relaxing 850088

  6. 705872 740199Hiya! Great blog! I happen to be a every day visitor to your website (somewhat much more like addict ) of this web site. Just wanted to say I appreciate your blogs and am searching forward for much more to come! 607491

  7. I know this if off topic but I’m looking into starting my own blog and was curious what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100 positive. Any recommendations or advice would be greatly appreciated. Cheers

  8. There are some fascinating points in time in this write-up but I don’t know if I see all of them center to heart. There is certainly some validity but I will take hold opinion till I look into it further. Excellent post , thanks and we want a lot more!

  9. 88077 843412As I web site owner I believe the articles here is truly great , thankyou for your efforts. 990081

  10. I and my friends were actually analyzing the great tricks found on your web page and then before long got an awful suspicion I had not expressed respect to the web site owner for those techniques. These young boys appeared to be absolutely passionate to read all of them and already have surely been tapping into these things. We appreciate you getting so accommodating as well as for deciding upon this form of high-quality issues millions of individuals are really needing to be aware of. My sincere apologies for not expressing gratitude to earlier.

  11. Thanks for ones marvelous posting! I actually enjoyed reading it, you can be a great author.I will be sure to bookmark your blog and may come back very soon. I want to encourage you to definitely continue your great posts, have a nice morning!

  12. 716735 212016This really is a excellent common sense write-up. Really beneficial to 1 who is just locating the resouces about this part. It will undoubtedly aid educate me. 616553

  13. I was suggested this blog by my cousin. I’m not sure whether this post is written by him as no one else know such detailed about my problem. You are wonderful! Thanks!

  14. 471337 205901you use a amazing weblog here! do you wish to earn some invite posts on my small weblog? 154214

  15. 692847 593598This internet web site is my breathing in, really excellent pattern and perfect content material . 248838

  16. 694806 31041I want to start a blog written by a fictitious character commenting on politics, current events, news etc..How?. 7068

  17. 419252 441471Hey there! Good post! Please inform us when we will see a follow up! 226764

  18. Please let me know if you’re looking for a writer for your site. You have some really good articles and I think I would be a good asset. If you ever want to take some of the load off, I’d love to write some content for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Thanks!

  19. 320890 813460building websites is not only enjoyable, but it can also produce an income for yourself;; 596153

  20. Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  21. Prolonged use of manufactured testosterone can cause shrinking of testicles, gynecomastia (breast development in men), decreased or increased sex
    drive, decreased sperm production, clitoral enlargement,
    male pattern baldness, and water retention.

    Check out my web-site; anti aging supplements hgh (Tobias)

  22. hello there and thank you for your info – I’ve certainly picked up anything new from right here. I did however expertise several technical issues using this website, as I experienced to reload the web site many times previous to I could get it to load properly. I had been wondering if your web hosting is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high quality score if ads and marketing with Adwords. Anyway I’m adding this RSS to my e-mail and can look out for a lot more of your respective fascinating content. Make sure you update this again very soon..

  23. Good website! I really love how it is easy on my eyes and the data are well written. I’m wondering how I could be notified when a new post has been made. I have subscribed to your RSS feed which must do the trick! Have a great day!

  24. Just wish to say your article is as amazing. The clearness in your post is simply nice and i could assume you are an expert on this subject. Well with your permission let me to grab your feed to keep up to date with forthcoming post. Thanks a million and please continue the enjoyable work.

  25. You should take part in a contest for among the finest blogs on the web. I’ll suggest this site!

  26. 396422 885314Wohh exactly what I was searching for, regards for posting . 110183

  27. 885742 659924I believe this really is among the most vital information for me. And im glad reading your write-up. But wanna remark on couple of common points, The site style is perfect, the articles is actually excellent : D. Excellent job, cheers 511548

  28. This website is mostly a stroll-by for all of the information you wished about this and didn’t know who to ask. Glimpse here, and also you’ll positively uncover it.

  29. 893759 411459An extremely fascinating examine, I may possibly possibly not concur entirely, but you do make some really valid points. 273572

  30. 661722 104476Enjoyed seeking at this, quite very good stuff, thanks . 664858

  31. 646604 648929Hey! Im at work surfing around your blog from my new apple iphone! Just wanted to say I adore reading via your blog and look forward to all your posts! Keep up the outstanding work! 68916

  32. 973040 296843Wonderful post, I feel internet site owners really should acquire a good deal from this internet internet site its quite user pleasant. 113344

  33. 855996 929534very good post, i definitely really like this excellent website, continue it 355978

  34. I was wondering if you ever considered changing the layout of your website? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or two pictures. Maybe you could space it out better?

  35. Heya i’m for the first time here. I found this board and I find It
    really useful & it helped me out a lot. I hope to give something back and help others like you aided me.

    Also visit my weblog garcinia cambogia extract manufacturers

  36. Youu madee ssome rezlly good polints there. I lioked onn the webb foor
    morre innformation about tthe issue aand found molst peeople will ggo along with you vieews oon tyis website.

    Hey thre would yoou min lettinhg mme know which web hlst you’re using?
    I’ve loaddd yohr blog in 3 diufferent internet
    bowsers aand I must say his blo lkads a lot faster then most.
    Cann you recommed a gokd hosing provider aat a reaonable price?
    Thankk you, I appreciate it! I am sure this paragralh has touched all thhe internt viewers, itss really really
    nice articlee onn building up nnew webpage.
    http://cspan.co.uk

  37. It iis perfect tme too mazke a few plans ffor thee onger term
    andd it’s tkme too bee happy. I’ve reqd thhis put upp andd
    if I could I ddesire to recommend yoou some attention-grabbing thinngs orr tips.

    Perrhaps yyou coulld wrie next arricles regrding this article.

    I wish tto read even more isaues approxmately it!
    Thhis iis a toic which iis near too mmy heart… Cheers!
    Wherte aare your contact details though? I’ll right away grasp your
    rsss fesd aas I can not too find yolur email subscripltion ink or newslefter service.
    Do yoou have any? Kindly allpow me realize iin order thazt I cluld
    subscribe. Thanks. http://cspan.org

  38. Magnificent beat ! I wish to apprentice even as you amend your site,
    how could i subscribe for a blog website? The account
    helped me a applicable deal. I had been a little bit familiar of this your
    broadcast offered vibrant transparent idea

    Feel free to visit my web blog – garcinia cambogia ingredients

  39. Along with every thing which appears to be building inside this particular area, all your perspectives are very stimulating. Nevertheless, I appologize, but I can not subscribe to your entire suggestion, all be it radical none the less. It would seem to us that your comments are actually not totally rationalized and in actuality you are yourself not even thoroughly convinced of the assertion. In any case I did take pleasure in reading it.

  40. Thank you a bunch for sharing this with all people you actually recognise what you’re speaking about! Bookmarked. Kindly additionally talk over with my site =). We can have a hyperlink alternate arrangement among us!

  41. 347636 984544Whilst youre any of the lucky enough choices, it comes evidently, whilst capture the fancy of the specific coveted by ly folks other helpful you you meet might possibly nicely have hard times this specific issue. pre owned awnings 491038

  42. Thanks for the auspicious writeup. It in fact was a enjoyment account it. Glance advanced to more introduced agreeable from you! However, how can we keep up a correspondence?

  43. Hello there! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My website discusses a lot of the same topics as yours and I feel we could greatly benefit from each other. If you happen to be interested feel free to shoot me an e-mail. I look forward to hearing from you! Great blog by the way!