Pro Bono News reports that more than 200,000 charity workers could lose their jobs if COVID-19 financial supports are not extended. The “October cliff” is looming when Jobkeeper – which has helped keep the charity sector afloat – is slated to end.
Social Venture Australia CEO Suzie Riddell says that “financial analysis shows that thousands of charities are at risk of closing… at a time when we should be pump-priming charities to aid the recovery”.
Demand is up (44%). Giving is down (20%).
Here are two ideas from Singapore that would be worth considering:
- Dollar for dollar matching grants to each charity up to $250K;
- A tax deduction of 250% for charity donations. That is, for every dollar given, deduct $2.50 off your taxable income.
If the government in Australia wants bang for bucks and partners in giving, it might seriously consider two proposals that have been floating around:
- 150% tax deductibility for a limited period;
- Extending tax deductibility to all registered charities for a limited period.
These ideas have the following attractions:
- Charities are supervised, regulated and accountable and the money gets through;
- Charities employ close to 10% of the Australian workforce who earn and spend;
- Charities meet immediate social needs;
- Co-funding is stimulated by rewarding personal giving.
It’s giving season now until 30 June. Now is a good time to act.