Taxing Times

Oh George, what have you done? 

It’s all over the news: Mr Osborne is proposing a cap on tax relief from 2013 that will apparently stop rich people from giving to charity – because they’ll lose the tax relief loophole that made it worthwhile.

That’s a funny idea, isn’t it? That people will stop being altruistic… because it’ll no longer be in their self-interest?

The concept of getting something back for your good deed – ‘reciprocal altruism’ – is an interesting one. 

Many people support charities relating to cancer or heart disease or another condition because they have a closeness to the cause. But, perhaps, some people do it as a kind of insurance policy. 

Cancer research for example – support that today and you might be improving the effectiveness of treatments in the future, when you might personally need them.

And what about raffle and prize draw mailings? They can raise lots of money for charities from audiences who don’t respond to cause-led appeals. 

People giving money to a charity… because they might win a larger amount of money for themselves (and I can tell you, winners nearly always choose the money not the car, and they rarely donate their prize back to the charity).

Mind you, those cause-led appeals should be giving the donor something too. Heartfelt thanks. Recognition and appreciation. 

A warm glow from doing something really good to make a positive change in the world.

Unlike that George Osborne, for instance.