I just think money raised by a charitable status organization should be used for the greater good of members, not the entitled enrichment of individuals. I didn’t say ‘taxed’, I said ‘taxable’, BTW.
Creating a tax code that incentivizes raising money for such work should deincentivize those seeking to abuse the power of a tax-free status. Hence, the creation of offsets. Create offsets that can be used to reduce the amount of tax payable by said organization.
For those who follow the precepts of responsible management of charitable giving, it should be possible to pay zero taxes. For those who continue to abuse the giving of their members… well, taxes should be paid by the organization, since it is no longer fulfilling its charitable mission.
To create organization impetus for more responsible management, like I also said, annual reports should be provided to those who donate to show where the money has gone. Members should know how their donations are being used. This should be required.
There is nothing sinister in that. I don’t expect to see charitable organizations with tax-free status, esp. religious ones at that, providing free rolls-royce cars to their leaders to drive around in, or cardinals living in luxury accommodation, or TV evangelists parasiting off the poor while enjoying luxury travel, while those in their care who are told to donate live in squalor.
Charitable status is a privilege, not a right, and as such it could be abused by any organization. If it is abused, said organization should have their status placed on hiatus or revoked depending on the severity of the problem.
And yes, I have a problem when charitable organizations seek to compete with regular businesses in the provision of services by undercutting their competitors or sucking up resources. Charitable organizations can become leeches on society by being corrupted by the overarching desire to make money.
I don’t have a problem with religous or charitable organizations running commercial businesses, provided they are transparent, public, and reasonable.