Editorial
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The GDP and charities
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The Jewish Federation of Greater Vancouver looks like it is going to meet its 1997 fund-raising target of $4 million. If it does, it will be an amazing feat from an economic viewpoint for at least two reasons. The first is that in spite of B.C.'s failing economy, British Columbians still ^^^^^^ dug deep into their pockets to give to " charity. The second is that we found some money left over to give to those in need, despite paying the highest personal income taxes in the country. Even- ;
tually though, the L. ......
well will run dry. Without economic growth, without jobs, we will not be in a position to help others. Our government's policies and attitude towards business need to change if chiuities are to survive.
Michael Hall, director of research for the Canadian Centre for Philanthropy, has found that charitable donations and gross domestic product tend to rise and fall together. (Bulletin, Feb. 20.) If B.C.'s economy continues on its current path, we will be in a recession. Charitable donations will fall.
Many economists blame the financial crisis in Asia for bringing B.C. closer to a recession. However, the Asian situation is not the cause of our current financial woes. Our own government, caused that. The economies of Alberta and Ontario are growing at much faster rates than B.C., not just because they are less reliant on trade with Asia, but because their governments welcome businesses to their provinces. They both have lower corporate taxes, less regulatory burden, and less strict labor laws than B.C. If you were an entrepreneur, where would you choose to set up shop? It is no wonder that B.C. lost 19,000 jobs in January.
Another made-in-B.C. problem is high personal income tax rates. When you pay a marginal tax rate of 54.2 per cent, as we do here in B.C., there is not much money left to give to the charity of your choice. For 1997, Alberta's tax rate was 46.1 per cent while Ontario's was 51.6 per cent. Those rates are going down for 1998.
The higher the tax
rate, the less everyone Is able to ghm to others.
Taxation affects everyone, and the higher the tax rate the less everyone is able to give, corporations and individuals alike, to others. Having diverse sources of funding will help charities through tough economic times but, in the end, high taxes and poor economic conditions affect ^^^^^ everybody, and, ^"^""^ therefore, every source of fimding.
Relying mainly on government funding is not the solution to fund-raising difficulties either. Government funding comes from tax rev-
_ enues and tax rev-
~ .......        - — ' enues come from
every B.C. taxpayer. In relying on government grants, a charity is forcing all taxpayers to pay for its programs whether or not they agree with its mission and goals. In addition, less money reaches the people in need because governments are notoriously inefficient and because cliaritable organizations waste money lobbying for government hand-outs.
There is more pressure on private charities to be effective, and to use their donors' money wisely than there is on governments. Dr. Jonathan Berkowitz, Jewish Federation president and chair of the Combined Jewish Appeal, noted that "people want either more direct control over where their gift money is going or at least to see more directly where their gift is going." (Bulletin, Feb. 20.) Yet, we continue to pay our taxes. We give our "gift money" to our government wdth Httle idea of where it is going.
If we want Federation and other private charities to reach their fund-raising goals in 1998 and beyond, we should stop handing our money over to the government un-questioningly-
We should demand that our government spend our money wisely. And while we are at rt, we should demand that they not take quite so much of it away from us in the first place. D
Lener
Dear Friends
Betty and Irv Nitkin brought us a beautiful big book of photos, mementos and messages from many members of the community, written at the time of the gala last May. Our thanks to Sharilyn Bell for her time and skill in assembling these wonderful memories for us.
To all of you who wrote individual thoughts, reminiscences and feelings, our warmest thanks. If we have time, we vvould write each of you. Every time we go through the gala book, we will remember you and the special experiences and relationships we had with you and your families. And when you visit us, we'll talk more.
Rabbi and Phyllis Solomon Israel
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