I've \u00a0been arguing for days on any radio programme that will have me that a very significant part of motive for the wealthy \u00a0when donating to charity is \u00a0the desire to exercise the power \u00a0that their wealth brings and to conspicuously demonstrate that wealth. \u00a0In other words, \u00a0their apparent philanthropy is an act of conspicuous consumption.<\/p>\n
It is for that that reason that I have argued that they do not need tax relief to \u00a0incentivise their donations and that if anything that tax relief is entirely counter-productive to the causes that charities should promote. After all, charities are meant to correct problems in society, but far too many of those who donate use their wealth and their position of influence to ensure that questions about why charity is needed are not asked \u00a0by the very people who should be posing the question. \u00a0That is why, for example, we see some aid agencies not talking about tax justice even though it is very obvious that tax injustice \u00a0and tax \u00a0haven activity is a primary cause of poverty in developing countries. \u00a0As a result of the malign influence of some donors \u00a0this issue is not addressed and the consequence is that poverty persists. \u00a0There are, of course, numerous other examples and I'm pleased to see that \u00a0there is a growing body of opinion expressing this sentiment in the press today.<\/p>\n
I would warmly recommend Polly Toynbee's<\/a> article on this issue, \u00a0and not just because she mentions me. \u00a0She refers to a meeting she attended at\u00a0which Lord Fink, Conservative party treasurer and hedge fund \u00a0capitalist, spoke about the reasons for giving to charity. As she reports:<\/p>\n \"I want to talk about what charity can do for us,\" he said. He sold charity as a door-opener to high society. \"What do you do now you've got all the toys?\" he asked. \"You've already got all the houses, yachts, cars and jets you can use, so what comes next is charity.\" Charity is not just for the joy of giving: \"I get invited to places I'd never have seen otherwise.\" It is the passport to the in-crowd, he said, listing the eye-popping names and places his philanthropy had taken him, including No 10.<\/p><\/blockquote>\n Precisely. \u00a0That is exactly what high-powered philanthropy is about. It is a determined effort to maintain the privilege of those in a particularly small group in society \u00a0through the exercise of power granted by wealth. \u00a0There are \u00a0honourable exceptions, of course, and I know it. But let's not beat around the bush: Fink \u00a0spoke for many.<\/p>\n