The Organisation for Economic Cooperation and Development (OECD) published a report on 26th November 2020 on taxation and philanthropy.
The report examines the tax treatment of charities and donations in 40 countries. The report describes the different types of tax benefits and assesses how tax incentives can be used to increase philanthropic activity.
In particular, the report highlights the concerns raised in some countries that a small number of wealthy people can have a disproportionately large influence. This concern is underlined by the increasing number of very large foundations set up by very wealthy individuals.
The report also identifies important considerations for policy makers on how to strike the right balance, such as improving supervision and increasing transparency in order to protect public confidence in the sector and ensure that tax benefits are not abused through tax avoidance or evasion.
