Working with Nexus and McDermott, Will & Emery LLP (MWE),
we've helped to produce the world's first global index that ranks
nations by how enabling the legal, regulatory and tax environment
is for charitable giving. We are grateful to Nexus for inviting us
to contribute to this project and help them in their analysis of
the research provided by MWE
The Rules to Give By Index contains a wealth of information
about the conditions for giving in all 193 nations that are
recognised by the United Nations. In addition, by comparing this
information with the World Giving Index we have been able to gain a
better understanding of the relationship between the availability
of tax incentives and the proportion of people who give money to
charitable causes.
The Rules to Give By Index shows that there is a clear link
between tax incentives and the likelihood that people will give to
charity. The report has found that the percentage of people
donating money to charity is 12 percentage points higher in nations
offering tax incentives to individuals (33 per cent) than in those
that do not (21 per cent). It also finds that this relationship is
equally as strong in countries that are defined by the World Bank
as Low Income as it is in High Income countries.
The report finds that encouragingly, that there is a growing
global consensus around the need for tax incentives for giving with
77 percent of government offering tax incentives for corporations
and 66 percent offering tax incentives for individual donors.
However, less than half of governments that impose estate taxes
allow people to make tax exempt charitable gifts when they
pass.
The report also focuses on the operating environment for
charities and finds that encouragingly, 94% of countries have a
legal form for organisations that provide a public benefit that is
exempt from taxation. Furthermore, 80% of governments require some
form of reporting from charities thus ensuring certain governance
standards and helping to build public trust.