Just make the tax allowance for charities conditional on a desired efficiency model. i.e. tax exemption goes from 0% to 100% depending on ratios such as Executive pay to Gross revenue (donations), or gross revenue to non-administrative expense for example. It would have the effect of encouraging organisations to merge or demerge to maximise their tax savings.
Yeah but what you are completely oblivious to is that some charities aren’t about giving out donkeys, they’re about providing advice. I have a friend that sits in the board of a charity. It lost a huge amount of funding a few years ago because corporate donors had the idea that overheads are a metric of effectiveness of donations. This charity spent 90% of its revenue on salaries. Why? Because the main activity Of the charity was advising education and social care agencies in developing countries on how to reform themselves. It’s highly specialized, difficult and unglamorous. When you insist on cutting overheads, you have to cut those specialists and you eventually lose that knowledge – you can shift that cost to project expenses by hiring some of those people back as consultants for fixed terms but there isn’t a market for their skills so they can support themselves, and they’re not creating institutional knowledge.
OP’s approach just spreads casualisation, deskilling and insecurity into a sector that will be seriously damaged by it.
