Tuesday, March 10, 2009

On charitable giving, the UK

I wrote earlier in this on-going saga regarding charitable about one person's suggestion that instead of lowering the deduction allowed for charitable giving, that you tax the rich who don't give to charities.

The Chronicle of Philanthropy reports that the British have gone the opposite route that the Obama Administration wants to take. The proposal would allow "50 percent tax relief on contributions that support the United Nations Millennium Development Goals, a set of antipoverty and social goals."

Wow - make it more tax deductible to give to charities? And, use "tax breaks" as an incentive to get wealthy donors to give to causes that benefit the UN development goals? I think I like this idea.

The Obama Administration could take a lesson from the British here: incentivize charitable giving with tax benefits and encourage them to give to organizations that benefit societal goals.

Two authors who support this UK proposal "argue that instead of mocking wealthy donors, the critics should consider what philanthropy has accomplished in America."

Notice the tense: has accomplished. Philanthropy's accomplishments in America is in danger of taking a turn for the worse as donors continue to feel the effects of the economic crisis and wonder about how the Obama plan will affect their taxes.

No comments:

Post a Comment