Different political parties are on a crusade in regards to making financial contributions to charities tax-deductible. (Here, Here, here, here, here, here, here, here, and here). In contrast to the large majority of nations within the Western Hemisphere, Sweden has yet to honor financial giving to non-profit organizations and charities within the tax-deductable context of our (heavy) taxing system. I recognize that there are a number of issues we need to deal with: what is the real motivation behind the giving? Would people give more, what would be the effect of giving on the needs and issues that we face in our society? If we only would count in effectiveness and cold figures we have to balance both sides of motivation for giving, namely: generosity and financial advantage.

The whole issue of support of non-profit organizations and charities is not enhanced by the different cases of bribery, misuse and abuse of power of those within some of these organizations and churches. Scams, bad management and high-rising administrations costs have made the general public (and giver) suspicious of the intensions and priorities of these organizations.

Eva Nordström of Tankesmedjan Sektor 3, which has conducted research on the consequences and changes of a possible tax deduction, has communicated that 30% of the population (16 years and older) would start to give or increase their giving if part of their financial support could be considered tax deductable. 12% said they are not yet giving to such causes at the moment. These figures imply that 900,000 new “givers” could be part to support causes that would benefit our society. Another 1,3 million people would increase their giving!

Of course we have to realize that some people consider us as national traitors if we would give donations (according to Johan Vamstad), as if we were trying to create another, (American) model as to institutionalize donations as a part of our welfare state!

So why would we give? In research done in other countries 85% of the contributors gave as reason that they wanted to be part of improving the welfare of others. Different motives could be retraced from the survey: some had religious motivations by giving to those who had less, others because they identified with the cause, again others want to “give back” – at the same time at surveys in the US 20% made clear that they used the tax deduction as a reason to give since it gave them advantages. No matter their motivation let us remember that it leaves another 80% with a healthy and good motivation. To give some perspective; Americans give at a level four times that of Britain and Germany.

So some of the questions are still the same: Are we greedy or generous?

A fact that surfaced clearly is that households in which members volunteer for charitable causes or at their church give more than twice as much money to charities than households with no volunteers!

Another point of interest to be considered: Should we count voluntarily time investments as another tax-deductable items in our attempt to create equality and justice for all within this system? Many people give many hours a week for good causes and “Time is money” after all!

I hope you realize that I am joking about this latter issue; I, together with my wife, will continue to give, not only the 10% of our income to the ministry of the church to which we belong, we give beyond that, not because we must, not because we are expected, or to gain something. We give, because we have learned the secret that it is better to give then to receive; we have learned how giving enriches life! It’s a joy!

If, against all odds we will have the opportunity for tax-deductible financial support to charities and non-profit organizations, we will be able to give more… so, more joy will be added to our family!

That’s the Way we see it!

John