Would We Give if it Wasn’t Tax Deductible?

There is a short answer, a longer answer and a philosophical answer…

The short answer is “Yes and No”.

Yes we would but it probably wouldn’t be as much. Giving to organisations that provide a tax deduction financially assists those who are giving. People would prefer that not-for-profit organisations get their hard earned money rather than it ending up in the hands of the government through paying tax.

The Longer Answer

The longer answer is to do with the structure the Australian government puts into place. The Federal Government desires that its citizens make philanthropic donations to not-for-profit organisations because many of those organisations exist to complement existing government agencies or they can even fill gaps which government agencies are unable to get to. In short, the Australian Government likes it when we give and want us to do so. As a result, there are many organisations which are Deductible Gift Recipients, meaning that when we donate to them we can receive a tax deduction. To become a Deductible Gift Recipient an organisation must go through an application process and fulfil a list of requirements e.g. must have an ABN, be located in Australia and must fall within a Deductible Gift Recipient category

You can find a full Australian list here.

The benefit to us as citizens and donors is that we can be sure that when we donate to one of these organisations, they have been vetted by a government agency to ensure that they are legitimate. They aren’t perfect and we still have a responsibility to do our own research before we give but we can rest assured that the government is aware of the organisation and what they are involved in. Plus, there’s the tax deduction – that’s another benefit.

The Philosophical Answer

This answer is to do with selfless acts, and as with most philosophical discussion the answer is neither ‘yes’ or ‘no’. People wrestle with and debate the idea of acting in a completely selfless way; doing something good for someone without getting anything in return (whatever ‘something good’ means – this is up for debate itself, but for now let’s just sit with the definition of an action from one person designed for the benefit of another). The real question that gets asked is ‘if we get something in return for doing something good, does it cancel out the good that has been done?’

It doesn’t take very long to figure out that there is no such thing as a completely selfless act (perhaps apart from that time when God came to earth and died for us – but I think that even He received some benefit as a result… maybe that’s a topic for another time), because we get some sort of benefit from any good thing that we do. Whether it is a thank you, a smile, an award, a tax deduction, recognition or even just a good feeling. You can’t stop it. And if you could, the amount of effort required to ensure that you received no benefit from something good that you would be so exorbitant that it would make your life miserable. It all comes down to motivation – why we do good things for other people.

We want to do good for others for a variety of reasons – we might have a heart for a certain demographic of people because we have similar experiences, or we feel a responsibility to help, or our faith might drive us, or a desire to impress others, or it is something we do offset the guilt felt in other areas of life, or it is to feel good about ourselves. In reality, I think it can be all of the above at the same time. People are complex with conscious and subconscious motivations and it’s good to seek to find out why we do the things that we do, but I don’t think we will ever fully understand ourselves, not in the short term anyway. So it is a good idea to keep doing good things for people as we journey through our self-discovery. It is okay to get a benefit along the way…so make a tax deductible donation before June 30…

www.opportunity.org.au

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s