Stories from our first two years
exposure.watsi.org
exposure.watsi.org
They really do amazing work; congrats on two years, guys.
Donate first, then watch his talk and then donate again. Make sure you look for the tip option on the checkout page if you want to help cover Watsi's operational costs.
For a foreign "non-profit", I won't get a deduction from taxable income for income tax purposes for the donation the way I would if the donation was to a local non-profit [1], but I don't have to pay an extra "cash spending" tax the way you describe.
[1] Actually, strictly this is a local charity, which is a narrower category than non-profits. Donations to local non-charity non-profits are generally not tax deductible to the person making the donation, even if the non-profit is itself tax-exempt.
If I am a business and have earned $1000, keeping it in the bank is exactly the same as if I withdrew that $1000 and put it under the bed in $20 notes. I pay tax on that $1000. I can give it to Watsi, who is outside of my country's tax jurisdiction, and I must pay tax on that $1000.
The upthread scenario addressed income taxation, and you asked whether or not people were not then taxed again on the after-tax amount because it was cash spending. Taxing income (with certain exceptions) may be generally comparable to taxing cash spending (with similar exceptions), but you don't generally get hit with both.
> If I am a business and have earned $1000, keeping it in the bank is exactly the same as if I withdrew that $1000 and put it under the bed in $20 notes. I pay tax on that $1000. I can give it to Watsi, who is outside of my country's tax jurisdiction, and I must pay tax on that $1000.
Sure, if you have $1000 of business income that isn't used for a tax-deductible business expense or tax-deductible charitable contribution, you have to pay tax on that. So, if you're marginal rate of taxation is 30%, a $1,000 donation to a local (and therefore, deductible) charity would actually cost you $700. So, if you could afford to give that $700, and find that Watsi is a better charity for your charitable impulses, enough to warrant the fact that you'll only be able to give them $700 for the $700 cost, rather than $1,000, you should just give them $700. That was the point lubos made upthread [1].
You then asked [2] whether that $700 didn't create an additiona tax liability as "cash spending". No, it doesn't. The $700 is the amount of the $1,000 left after the tax liability for not spending it on a deductible purpose is considered.
30%, actually, or $600 @ 40%.
An example from the U.S.: http://nonprofit.about.com/od/fordonors/qt/internationaltaxd...
I really wish my mobile internet was good enough to watch Chase's talk right now.
Edit: Also want to express that I'm proud of the Humble Bundle community! The games industry has made us lose faith in humanity a bit recently. It is heartwarming to hear we're regaining ground.
The act of funding a person rather than an organisation really connects me with the importance of giving the gift - it de-abstracts the situation somehow, and brings home the fact that for not-that-much-really money you can completely change someone's life.
I'm a 26 year old, somewhat privileged white male. I have accomplished nothing in life. I'm still struggling to graduate from college which I'd spent 6 years of my life for. I get depressed thinking about it, and just want to dedicate everything I have as a human being to work for some humanitarian organization similar to Watsi so I could feel like I'm good for something. Of course, then I realize these organizations don't exist to help privileged people like me to figure out what we want in life, but to help people who have real problems. I'm such a cliche. I applaud Watsi team not because they're a bunch of wonderful people who have great talent, but because they wanted to use their talent to make the world a better place. I wish I had your courage.
I'll donate whenever I can, which doesn't amount to much, but every bit helps. I hope.
PS: This thread should be about Watsi but I couldn't help share what I feel. I hope you don't take it the wrong way. Thank you.
A side question, I love that 100% of donations go to medical care. How does the team fund their operational costs?
"100% of every donation to patients on Watsi directly funds medical treatment - our overhead costs are covered by optional donor tips, cause marketing partnerships, and private donors, foundations and corporations."
https://docs.google.com/spreadsheets/d/1KQ2uWkJf5-5f34uttGmA...
But the linked webpage... when did design like that become normal?
I'm guessing its aimed at smartphone users, only a tiny bit of info per "page"