The new rules do not go far enough. Charity fund-raising has had a bad smell for some time now where fund-raisers get the bulk of the take with little actually getting to the underlying charitable cause.
A targeted maximum rate of 35 cents on the dollar to go to the fundraiser for fundraising costs is ok but as the rule states, a charity can exceed the 35% up to 70% but must explain why on an audit. Over 70% the charity will be hauled before the watchdog.
The increase in scams has been a result of the more favourable tax treatment given charitable donations a couple of years ago. Are we surprised at the abuse? No, it would seem anytime “tax loopholes are created” scummy operators come out of the woodwork offering deals.
Bottom line is check out the charity you want to support carefully.
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