Rich using bogus charities to avoid tax, says David Cameron's spokesman

[alp227]

Source: The Guardian

Some wealthy individuals are systematically avoiding paying tax by using bogus charities that do little charitable giving, the prime minister's spokesman has said.

He was justifying the budget decision to put an annual individual cap on tax relief – a cap that charities have warned will lead to a severe slowdown in charitable giving in the UK. Arts organisations and charities say the plans are already having a chilling effect on philanthropists who are having to rework the amount of tax they have to pay, and therefore how much cash they have available to give to charities.

The Treasury said it was going to hold talks with charitable groups to discuss its plans.

The prime minister's spokesman said: "In certain instances individuals may be giving money to charities and those charities don't in all cases do a great amount of charitable work."

Read more: http://www.guardian.co.uk/society/2012/apr/10/rich-using-bogus-charities-tax

[Fresh_Start]

1. any charity that doesn't spend at least 50% of its total proceeds on the goal should not be qualify

for tax deduction. People setup charities and employ their own family and give less than 20% to the supposed object of their charity. The real object of those charities is to pay the people who set it up, not to do anything charitable at all.

[Kelvin Mace]

7. I won't give to anybody whose overhead exceeds 15%

Or has a chairman with a seven digit salary.

[Fresh_Start]

8. I also use the ratings....

before I give but I'm not sure what the right number is.
Just thought 50% was inarguable.

[Kelvin Mace]

10. There is a organization

whose name escapes me at the moment, and they generally won't recommend any group under 80%.

[Fresh_Start]

12. I use charity navigator.

but there are others as well.

[saras]

2. An obvious mistake. Instead, attack charities that don't do charitable work.

I think it would be reasonable to require 90% of gross income to a charity go to the actual charitable work for them to be allowed to claim a tax deduction. Otherwise, you're just giving money to friends, who can quietly give it back.

[dipsydoodle]

5. Its not only that

check out some of the grants they receive : http://fakecharities.org/category/charity/page/6/

Yes : "Otherwise, you're just giving money to friends, who can quietly give it back."

[freshwest]

3. They call them foundations here. Great tax shelters that make the masses believe they love them...

[Blue_Tires]

9. +1

[dipsydoodle]

4. There were / are doubts about George Galloways charity - Viva Palastina

From March 2009 : George Galloway attacks Charity Commission over Gaza appeal.
http://www.guardian.co.uk/politics/2009/mar/24/george-galloway-charity-commissioners-palestinians

And from today, by coincidence , : George Galloway's Viva Palestina could be removed from Charity Commission's register.

George Galloway's charity Viva Palestina is over 300 days late in sending its accounts to the Charity Commission.
http://www.telegraph.co.uk/news/politics/9194168/George-Galloways-Viva-Palestina-could-be-removed-from-Charity-Commissions-register.html

Rgeistered charities here are strictly controlled. Their accounts should be easy to find just using the registered charity number online. That dose however assume their accounts to be up to date.

[exboyfil]

6. In this country churches are tax exempt

but arguably most of the work done by them is to benefit the members. Very little outreach money is spent. The staff is in place to provide entertainment and services.

[AmateurPolymath]

11. These scumbags should be tried for treason

They contribute jack shit in terms of services or taxes, yet rake in exponentially-growing riches at the expense of consumers, laborers, and the taxpayers that bailed them out. Unpaid-for bailouts, services, and subsides from the government should be considered theft.