Season of Giving

For the world in general, the Christmas season or Holiday season for that matter, is the most giving times of the year. For corporations, it is no doubt the same thing. However, their year-end donations are more tax write offs than anything. That is they are a way of reducing a company's tax liability and it is more common than you might think. The tax structure and the way the tax laws are written, actually makes it easier for some business's to lose money on certain ventures, so they can gain more by reducing their taxes. This is actually encouraged by the way the tax laws are enacted and the plethora of tax loop holes are easy to jump through. One company I did a cost-analysis for has a division that they intentionally want to lose money. The loss is then subtracted from the company's profit tax. This is only a small part of problem of the skyrocketing national debt.

None of us can run our household's in this way, so why do businesses do this and give us the business? People use tax deductions, for the most part, in legitimate ways, like for children or home-related expenses. Companies, politicians and sometimes even city governments use deductions for what they did not legitimately deserve. For example, it's outrageous to me that a company purposely loses money in one of it's subsidiaries or divisions to, in fact, make money. They encourage losses to be able to deduct these losses from their tax liability. This is akin to stealing funds from legitimate social needs that the government should be using for Women With Infants and Children (WIC) and food stamps (via the SRS) during declared emergencies. But businesses using tax write off's to make more money isn't what the "govern meant"!

The greatest givers remain the private citizens. They are by far the most altruistic. And Americans in general give nearly twice as much, per capita, than any other nation on earth. Yes, they too get tax reductions, but by and large, theirs are legitimate. Many times people give to charitable organizations and their donations have direct impact and effect: at the point of service. This is most frequent where the needs are the greatest. This is taking it to the streets, the shelters, the shut-ins...those deemed expendable by most of society. The elderly are seen as a debit to companies, corporations (as in retirees) and society in general; but to many ordinary Americans, they are the ones most deserving of donations.

There was no one more cynical about the citizen than economist Arthur Brooks. He was convinced that Christians, for example, were probably the stingiest givers of all. A few years ago, Brooks launched a three year research project and concluded that he was dead wrong. His findings were published in his book "Who Really Cares?" and they were totally the opposite of what he went out to prove. Mr. Brooks has totally changed his mind when his research was completed. He found out that the richest among us gave the absolute least proportionately.

Based upon Brooks' findings, giant companies and CEO's gave absolutely the least, in proportion to their income. The poorest 15% of society gave the most, again in proportion to their income. He also found that people of faith are 38% more likely to give to charity, 52% more inclined to do volunteer work, 350% more likely to donate, than the general public at large. Christians and the lowest 15% of the economic ladder, where 57% more likely to help a homeless person.

Before you give, I would recommend that you do your homework and research any charitable organization before you give, since there are many wolves in sheep's clothing. For example, I have found that Feed the Children is one of the most highly rated based upon needs for children and they put nearly 94% of funds at the point of service. In this case, that's food in the mouths of hungry children. The citizens who directly impact their own community with volunteering or donations more likely than not, get more for their money too. Fewer middle men equal higher funds at the direct point of need. Even giving of yourself, holding the door, smiling at the clerk, giving generous tips at the restaurant, all create that positive, ripple effect of good will and cheer. Contrary to logic, the giver actually receives more than they give. To give of yourself and of your money does more for the giver, in many cases, that the recipient. So it is the season of giving. Please give to a charity that you trust and know and one that directly impacts our world. Particularly those of the greatest need. Let me put it this way:

When those who have the most,

give less than those not rich.

They rob themselves of precious things,

and those who have not much.

The giver knows such fine returns,

than those who want for more.

And when given they do receive,

more than they sent the poor.