The majority of charities do work that should be directly supported by the government. But governments, rightly or wrongly, make sure that donations from citizens are also required to support charities.
Any compulsory giving to charities benefits all of society, as well as the emotional well-being of those who give.
Profits – it has been suggested that a way for some businesses (for example, insurance companies) to operate would be to cap their profits at a certain amount – say 5% of capital, and that any excess be given to charity. That would let businesses be successful, but at the same time limit the motivation of profit.
Fines – governments fining businesses who do wrong could also be seen to have a more genuine motivation if those fines were donated to charity.
Taxes – meanwhile, one of the world’s richest people, Michael Dell, says the super-rich shouldn’t be taxed at higher rates because they tend to very philanthropic people, and money is better going to the causes they support, than to the government. Perhaps their charitable donations could be 100% tax deductible, and their income taxes rate rise at the same time.
For this to occur, the regulation and oversight of charities would need to increase significantly, as well as laws requiring complete separation from the charities you give to – perhaps even two or three degrees of separation. Any organisation that receives funding or support from a charity would need to publicly disclose this.
