Greetings to all. Welcome to the website and to Family Foundation Management/Counsel’s very first blog!
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In an Op-Ed in yesterday’s New York Times (Dec 7th) Professor Ray D. Madoff opined on his conviction that many charitable deductions do not serve the public good.” The nub of his argument is that the federal government (us as taxpayers) subsidize wasteful, duplicative or questionable practices. He’s not wrong but his proposed fix is that Congress take care of it. He’s correct from a theoretical perspective in that Congressional action is necessary to revise the tax code. But for a philanthropist who hopes to put money to work as efficaciously as possible it’s a not very helpful solution.
From my perspective the practical choice rests with the philanthropist taking the time to dig beneath the surface of any charity he or she is thinking about helping and to couple the gift with a set of realistic expectations derived at the time the gift is made. This is not to say expectations are imposed: the ideal way is to work with the charity so that it receives a gift it can really use well and at the same time meet the aspirations of the donor. I have seen gifts go awry simply because there was no meaningful dialog between the parties; each side bore its own assumptions.
Especially during this holiday season gifts, even large ones, are often made without much forethought because money often has to be shoveled out before the tax year ends when many of us can make the best estimate of what we might be able to afford out of income or assets. Meaningful philanthropic planning is not just a money issue but a strategy that is built over time. We hear a lot of talk these days about “accountability.” The usual inference is the accountability we expect from charities; another way to look at accountability is what we expect from ourselves.
Happy Days!
Cogent observations. Madoff ignores that all large systems include some “wasteful, duplicative or questionable practices,” whether it’s the charitable sector, the business sector, the Army, democracy, or mammalian biology. As rationale beings, we do the best job we can to find efficiencies and ensure honest practices. In that, the charitable sector actually does pretty darn well serving the public good. And with so much of it being local, we can see the results and even take part.
Well observed!