Occasional reflections on Life, the World, and Mathematics

Posts tagged ‘charity’

From the archives: Charitable giving to universities

With The Guardian portraying the magnitude of Oxford and Cambridge college endowments on the front page as a major scandal — though taken all together they don’t reach even half of the endowment of Harvard — it seems like a good time to repost this comment I made five years ago, when the government was being attacked by Oxford’s chancellor for considering limiting the tax deduction for charitable donations to educational institutions. The post begins:

Let’s think this through:

  1. The government wants philanthropic funding of universities to replace public funding.
  2. Under current law, contributions to universities (and other charities) are matched by a 40% tax rebate for higher-earning taxpayers, so 2/5 of the costs of nominally “private” contributions are actually paid by the taxpayers. The government proposes to cap this subsidy at 15% of income or  £20,000.

Do you see the contradiction? Neither do I. In a time when the government is cutting funding for all manner of worthy projects, it seems pretty undemocratic to effectively allow wealthy citizens nearly unlimited access to the treasury to support their own favourite causes. The £560 million in charitable gifts last year presumably included more than £200 million in “gift” from the government. Whether or not this is a good thing, it seems troubling, as a point of democratic principle, that control over these £200 million has been passed from the citizenry at large (in the person of their elected representatives) to the infamous “one percent”.

For the rest, see here.

I think everyone would agree that if the wealthy elite want to spend their money on providing luxury education in medieval buildings to particularly talented young people, many but not all of whom come from privileged backgrounds, that’s probably not the most useless or antisocial thing that they’re free to do with their money. (And I can confirm, from personal experience, that Oxford colleges spend insane sums of money on maintenance for their buildings.) But as long as they’re leveraging public funds, which the current government has decided to withhold from educational institutions that serve a broader public far more efficiently, it’s no longer a simple matter of private choice.

The true face of capitalism

Modern capitalism started with the railways. And today:

A mother has launched an appeal to try to find a generous stranger who bought her stranded daughter an £85 train ticket home.

India Ballancore, 16, missed her return train to Bristol from Stockport, Greater Manchester, on Sunday.

Her mother Andrea said the stranger stepped in and paid for a new fare after India was told her ticket was not valid for the next service.

Of course, the only reason why she needed this kindness from a generous stranger is that Cross Country Rail employees couldn’t resist the opportunity to profiteer off a vulnerable girl who had already paid for a ticket, but had missed her train.

Donald Trump gets into refugees

The Washington Post reports on Donald Trump’s objections to an agreement to take in 1250 mostly Middle Eastern refugees currently in Australian detention sites:

Trump was also skeptical because he did not see a specific advantage the United States would gain by honoring the deal, officials said.

He can’t conceive of a deal whose purpose is to benefit someone else. This reminds me of Monty Python’s Merchant Banker sketch. A humble fellow raising money for charity wanders into the office of a very wealthy and self-centred banker:

Mr Ford: Oh. I wondered whether you’d like to contribute to the orphan’s home. (he rattles the tin)

Banker: Well I don’t want to show my hand too early, but actually here at Slater Nazi we are quite keen to get into orphans, you know, developing market and all that…

Mr Ford: So er, how about a pound?

Banker: A pound. Yes, I see. Now this loan would be secured by the…

Mr Ford: It’s not a loan, sir.

Banker: What?

Mr Ford: It’s not a loan.

Banker: Ah… Look, I think I’d better run this over to our legal department. If you could possibly pop back on Friday…

Mr Ford: Well do you have to do that, couldn’t you just give me the pound?

Banker: Yes, but you see I don’t know what it’s for.

Mr Ford: It’s for the orphans.

 

Banker: Well, I’m awfully sorry I don’t understand. Can you just explain exactly what you want.

Mr Ford: Well, I want you to give me a pound, and then I go away and give it to the orphans.

Banker: Yes?

Mr Ford: Well, that’s it.

Banker: No, no, no, I don’t follow this at all, I mean, I don’t want to seem stupid but it looks to me as though I’m a pound down on the whole deal.

Universities and charity

 

Here’s a weird, but hardly novel, controversy: Charity tax row: Oxbridge joins revolt.

The Oxford and Cambridge vice-chancellors wrote privately to Chancellor George Osborne saying his plans risked undermining the culture of university philanthropy. UK universities, which raised some £560m from charitable gifts last year, want him to rethink. Ministers want to stop tax avoidance. Mr Osborne says he is shocked by thescale of legal tax avoidance by multi-millionaires. Under current rules, higher-rate taxpayers can donate unlimited amounts of money to charity and offset it against their tax bill to effectively bring the amount of tax they pay down, sometimes to zero. But from 2013, uncapped tax reliefs – including those on charitable donations – are to be capped at £50,000 or 25% of a person’s income, whichever is higher… An Oxford University spokeswoman said that the government’s own policy emphasised the role of private and philanthropic investment, rather than the public purse. “A step that penalises the government’s own approach seems ill-considered.”

Hmmm. How about this alternative statement:

The university’s own justification depends on its promoting self-consistent argument, rather than specious self-serving sophistry. “An argument that contradicts the university’s own raison d’etre seems ill-considered.”

(more…)

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