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Gabrielle Fack, Camille Landais, Alix Myczkowski, Public Goods, private charities. How the State can regulate the charity Business ?

Gabrielle Fack, Camille Landais, Alix Myczkowski, Public Goods, private charities. How the State can regulate the charity Business ?, Paris, Editions de la rue d’Ulm, 2018

In a context of public financial crisis, States seek to encourage voluntary financing alternative to taxation to finance public goods such as cultural institutions, education, research, etc. Therefore, for fifteen years, they have put into place tax incentives for donations, hoping to reach a level of private funding similar to that of the United States, where the level of philanthropy is much higher than in Europe. In France, a donation of 1 euro opens the right to a tax deduction of 0.66 to 0.75 euros. While the public spending associated with these incentives is increasing, the effectiveness of such practices needs to be questioned: to what extent can the State encourage private charity through financial incentives?

To answer this question, it is necessary to analyze and compare the levels of donations in different countries. After gathering available sources to study the financing of private assets around the world, comparing in particular the evolution of donations in France, the United States, Canada and Denmark, the authors seek to understand the motivations of donors and then analyze the effectiveness of tax incentives, taking into account the fact that financial incentives are sometimes counterproductive in the case of private charity. How can the existing device be improved?
 

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