The idea that governments can provide a sufficient amount of charitable contributions to offset the costs of their public services is something of a cliché, and it is rarely challenged in the public discourse.
However, in reality, charities, governments and the general public are often struggling to provide a good enough level of charity to cover the costs.
For example, in 2017, the Commonwealths largest charity, the Australian Taxation Office (ATO), published its 2017 Charitable Aid Budget which highlighted that the Commonwealth spends around $7.8 billion a year on charitable contributions.
It estimates that over a five-year period, charities will receive around $100 million a year in donations to support their work.
This amount is less than half of the $300 billion that the OECD predicts will be spent on charitable work over the next 10 years.
The reason for this is that the ATO’s analysis is based on the average amount of the donations made each year by charities across all countries.
It does not account for differences in donation rates, which may be driven by differences in the way charities have traditionally funded their work or the ways in which they operate.
The ATO, however, does recognise that in some countries, there is a significant level of funding gap.
In the United Kingdom, where the average donation is around £2.15 a day, the charity provides a charity tax deduction of only £6.6 million a day and has only a £400,000 annual budget.
But in other countries where the donation rate is higher, the gap between the average level of charitable donations and the amount that governments are willing to spend on their public service is much larger.
This is the case in Australia, where in 2017 the average charity received £11.2 million in contributions.
And the gap was even greater in Canada where the government spends around 10 times more than it receives in donations.
Australia’s gap The ATOM report has suggested that in many countries the gap is much greater.
According to the ATOM, in 2016 the average contribution to a charity was £9.2 billion and in Canada, the average is around $11.3 billion.
It says that these figures reflect a substantial contribution by the public sector.
But they also suggest that there are very few countries where this gap is as large as Australia’s.
In addition, in Australia’s case, charities can provide much more charity tax deductions than they are able to in the UK.
The charity tax exemption applies only to donations made directly to the charities, not to the Government or any other public body.
The only exception is the Commonwealth and the Commonwealth’s contribution is capped at 20 per cent of all charitable donations, meaning that the charities can only receive up to 10 per cent from the Government’s own revenue.
So if a charity receives $7 million in donations in a given year, its charity tax allowance can only be worth around $9.3 million.
This means that a charity that received a donation of £3.2m from the Commonwealth could not receive any more than $5.3m from that Commonwealth.
A more realistic figure is that, in countries where a significant amount of charity tax is available, the amount of tax that a donor can deduct from their donations can be much higher than in Australia.
For the UK, the charitable contributions of a single individual could amount to up to £60 million, whereas a couple could receive up, say, £75 million from the UK government.
This would imply that a single person could pay an average of about $6,500 to their charity over the course of their lifetime.
This figure does not take into account the tax benefits that people could be entitled to in other ways, such as tax-free charitable deductions.
This could lead to people being able to claim more deductions than their charitable donations would have, for example, deductions for charitable contributions that would have been eligible for tax in Australia if the tax system had not changed.
In 2017, charities were able to deduct about $9,800 in tax on the charitable donations of their top 10 donors, but this was reduced to $1,400 in 2018 and then to $750 in 2019.
The OECD’s Charitable Assistance Budget in 2017 estimates that the UK’s top 10 charitable donors received an average tax benefit of $2.2million in 2017.
And charities in the United States, Canada, New Zealand and Australia paid a combined average of $3.4million in charitable donations in 2017 (the figure excludes deductions for tax-exempt charitable donations).
Australia’s charity tax exemptions In the year that the Charitable Relief Budget was released, the ATOC estimated that, as of March 2019, the total amount of taxable charitable donations was around $13 billion.
The total amount that the Australian Government would have to pay if it wanted to be reimbursed for the $3 billion in charitable contributions it received in 2017 was estimated to be around $3,500 per donor.
So the total cost of providing a charity with