Letter from America - charities and the generosity of strangers

YOU and I know them as “charities” in the UK but here in the US they are referred to as NPO’s or “non-profit organisations.” They are legal entities that operate for a public benefit rather than to make a profit.

They are also known as non-business entities, non-profit institutions or simply non-profits. As with charities they are organised for a collective, public or social benefit and qualify for tax-exempt status. They must make their financial and operating information public so that donors can see how their contributions are used. They are run like a business and try to earn a profit which does not support any single member. So yes, they are pretty much the same as charities are in the UK.

But here’s the difference, they are absolutely everywhere here in the US and supporting every possible thing that you can think of. They go well beyond the type of things that charities do in the UK and can be set up in a moment. Churches, public schools, childcare clubs, public clinics and hospitals, amateur sports organisations, credit unions, animal shelters, horticultural organisations, chambers of commerce, recreation clubs, cemetery companies and veterans’ organisations are just a small selection of what they encompass.

All have slightly different tax exemptions depending upon their purpose. You can’t turn the corner without bumping into a non-profit here. The main thing though is the incredible amount of support they get from both the public and businesses. The amount of money that flows into them is staggering at times.

Virtually all businesses set an annual allocation of funds aside from their budgets to give to non-profits. In return of course they get to offset this against their taxes. As an individual, you can also offset your taxes by donating financially or with things like items of clothing for example.

Recently I’ve cleared out my wardrobe and given a lot of my old UK cold weather clothes to a homeless charity and I got a receipt for the donation on which I could put a value and then use it on a tax form, that is if I paid tax here, which I don’t because I still pay UK taxes and don’t earn an income here. So, there are a lot of incentives for you to support any of the many non-profits here and people do to a level way beyond what I’d ever seen in the UK in my lifetime.

It's true however, that many of these non-profits take the place of services that you might normally see provided in the UK by the Government or Local Authorities. The country runs differently for lots of good reasons, so these organisations provide many valuable and essential services that individuals and communities really need.

This degree of generosity also extends into sponsorship particularly sponsorship by wealthy individuals and families or big business corporations. Of course, for them it’s also “tax deductible” which certainly helps them support their various choices. If you have a sports team, it’s not difficult at all to find yourself a willing sponsor and it’s not so much what the sponsor will get out of it, it’s about them using the tax-deductible opportunity. It also looks good for them having sponsorship in their business profile.

But “giving” is just inherent within US society much to my surprise. If anything happens there will be a “Go Fund Me” page set up and quickly money will pour in. Recently, two local police officers in different incidents were shot and killed while on duty, yes, that’s America for you, but significant funds were raised within days to pay for their funerals and financial support for the families left behind. Miles and miles of roads were lined with people showing their respects as they travelled to their churches for their services. The outpouring of support can be overwhelming here at times.

On a not dissimilar note, I saw a story on television the other day which relates to this subject. A lady in Louisiana was going to her local supermarket and saw an elderly man collecting shopping trollies in the car park. It was 110F, scorchingly hot, but he was there in his store uniform doing his job.

The lady was concerned for his health in such heat. She spoke with him and found out he was 90 years old and worked five days a week. He was a retired veteran and had been in the army for many years. He had been doing the job for 20 years. She had asked the store manager why they didn’t find him a job inside, and she was told that he didn’t want to be inside, and he preferred being outside.

She asked him why he did this job to which he replied, “I work to eat”. Apparently, his veterans pension wasn’t enough to cover his bills, so he had to work and picking up shopping trollies for the supermarket was his lifeline, even at 90 years of age. He had no family at all.

The lady was so struck with this that she went home and posted about this on her Facebook page with the intention of getting a little financial help for him. In less than 24 hours she had raised $230,000, a remarkable sum and a mark of the generosity of the American public. The lady got his phone number from the store, and she called him to tell him about the money.

When he took the call, because her number wasn’t in his phone he refused to talk with her but agreed to call her back. She got the local Sherriff to come with her to meet with him to confirm it was all above board. She then transferred the money into his bank account. When asked what he was going to do with the money he said he would continue working but just one day a week now and a quarter of the money would go to his local church as they had been good to him.

I was very much touched by this story with a very happy ending. It proves that there’s good in this world that at times can seem very dark.