We asked our global network of Family Offices if they think taxation of philanthropy work should be eased during the coronavirus pandemic and overwhelmingly, they said yes.
This was following a report published by the OECD – OCDE and University of Geneva's Centre for Philanthropy which reviewed the taxation treatment of philanthropic entities and charitable donations across 40 countries.
It was launched just last week to reassess the tax support, exemptions, and fiscal caps of donations in a bid to reduce the complexity of tax laws that disproportionately affect low-income donors. The report presented the idea of easing taxation during the coronavirus pandemic for this particular group of philanthropists.
But we asked our network: should we instead welcome a blanket easing of taxations to show gratitude to all contributors and, to welcome many more?
Our network was unanimously in support of the idea with 66% of Family Office's supporting a blanket easing of taxation and it isn't hard to understand why.
From March to June 2020, 209 UHNW donors contributed over $7.2BN to the coronavirus pandemic, split between financial donations, manufactured goods, and future commitments.
We saw a spate of high-profile families donating funds, re-purposing production lines to meet the demand for ventilators and offering their hotels, homes, and buildings for those in need.
We also watched our youngest entrepreneurs channel their funds and time into repairing the damage which means 12 months on from the birth of the pandemic, we have several vaccines around the corner. We have also witnessed a digital transformation in almost every home and office across the world.
With the pandemic of collaboration and community encouraging both compassion and charity from anyone in a position to give, shouldn’t everyone who gives be offered the same allowances in return?