why not try to create win win situation? Why not try to get the max out of ato?
Kiva - helping others via micro-credit
- Thread starter Perp
- Start date
why not try to create win win situation? Why not try to get the max out of ato?
Because its not about you and what you can get.
You're not losing. You get your money back. At the same time you help someone less fortunate but with some get up and go and the right attitude to make a difference for themselves and their family.
Wrong mindset from the outset.
Rooster
Whether we loan with the right or wrong mindset, we are still loaning. Why not try to get some benefit out of it for the loaner. As Packer once said, "anyone who does not try to minimise their tax needs their head read."
May actually even encourage more loans if there is a tax deductiblity available.
This post made me look at my portfolio and it makes me smile so much when I read the list:
Farming, Cambodia; Retail, Mexico; Grocery, USA; Cattle, Georgia; Mobile Phones, Mexico; Retail, Senega; Grocery Store, Dominican Replublic; General Store, Uganda; Flowers, Cambodia; General Store, Phillipines, Cafe, Azerbajan; Farming, Cambodia; Fish Selling, Cambodia; Food Market, Uganda; Pigs, Nicaragua; Catering, Mexico; Pharmacy, Togo, Beauty Salon, Togo; Grocery Store, Cambodia
I just enjoy being involved with these people, reading their stories and watching them pay back. It is fantastic.
Thanks Perp for getting us involved
Chris
Farming, Cambodia; Retail, Mexico; Grocery, USA; Cattle, Georgia; Mobile Phones, Mexico; Retail, Senega; Grocery Store, Dominican Replublic; General Store, Uganda; Flowers, Cambodia; General Store, Phillipines, Cafe, Azerbajan; Farming, Cambodia; Fish Selling, Cambodia; Food Market, Uganda; Pigs, Nicaragua; Catering, Mexico; Pharmacy, Togo, Beauty Salon, Togo; Grocery Store, Cambodia
I just enjoy being involved with these people, reading their stories and watching them pay back. It is fantastic.
Thanks Perp for getting us involved
Chris
This post made me look at my portfolio and it makes me smile so much when I read the list:
Farming, Cambodia; Retail, Mexico; Grocery, USA; Cattle, Georgia; Mobile Phones, Mexico; Retail, Senega; Grocery Store, Dominican Replublic; General Store, Uganda; Flowers, Cambodia; General Store, Phillipines, Cafe, Azerbajan; Farming, Cambodia; Fish Selling, Cambodia; Food Market, Uganda; Pigs, Nicaragua; Catering, Mexico; Pharmacy, Togo, Beauty Salon, Togo; Grocery Store, Cambodia
I just enjoy being involved with these people, reading their stories and watching them pay back. It is fantastic.
Thanks Perp for getting us involved
Chris
Giving without expectation of return provides humans with significance beyond "success", and I dont mean just the gifting of money, sometimes the gift of time or forgiveness far outweighs what we can achieve with our financial resources.
The returns on your investment with such work ? Cant be measured.........a long time mentor of mine says that any fool can count the seeds in an apple, but no one can count the apples from the one seed.
Here endeth the sermon for those that may need it : )
ta
rolf
It's not a donation; it's a loan.
As others have said, there is no tax deductibility. I don't understand the analogy at all; McDonald's aren't in the lending business.
Even if they were, a loan's principal isn't deductible to anybody; at best, the costs of lending are a deduction against any interest income received. But these are no-interest loans, so that's not even the case here.If you make a donation to cover Kiva's operating expenses - which is entirely voluntary, but I usually try to donate the recommended 15% - it's only deductible in the USA. Your loan amount, i.e. by far the bulk of one's contribution, is repaid with no interest, so there is no taxable income or expense with regard to the loan.
So to be crystal clear: each loan you make is US$25. You can choose to donate US$3.75 - or a higher or lower amount - with each loan to help cover Kiva's expenses. Over time, the US$25 is repaid to you. The $3.75 donation (if you made one, or higher/lower amount) is a deduction against US income, if you have any, but has no deductibility against Australian income.
In terms of family planning and control of STIs (including AIDS) it is apparently a well researched fact that providing education to girls and women yields the best results.
value is measured in more than monetary terms.
the idea is to LOAN the money, not DONATE it.
in which case, if you declared it as a donation to a charitable cause, you would be in breach of the Taxation Act because
a) it's not a donation, and
b) it's not a charity.
but, as mentioned, the idea is not about maximising YOUR return.
do you donate to the poor basket at church and then ask for a receipt?
Actually, I'll argue that point - I think in a very indirect way you can get a financial return, and it can be significant by:
- Easing tax payer funded government aid to these places in need
- Encouraging economic and commercial stimulus which can provide demand for goods and services
I just finished reading a book called "Profits at the Bottom of the Pyramid" by C.K. Prahalad. Fascinating stuff.
The Y-man
but that's an incidental. you don't base your idea to loan money to the third world around the benefits you get out of it - someone says "hey have you realised this?" and....
ah never mind.
if you want to be the IMF and repossess the Amazon Basin to derive income from logging because you made a loan to a country you knew couldn't repay, go right ahead.
Actually it is tax deductable in USA. You are lending but you must GIVE the money. YOU don't get it back. It goes back into your account to lend again. So if in America the initial "loan" is tax deductable.
I love this charity. You get to give over and over. And I like the idea that it helps people help themselves (the teaching to fish analogy and all that).
I love this charity. You get to give over and over. And I like the idea that it helps people help themselves (the teaching to fish analogy and all that).
Usury is the act of profiting from misfortune - also lending with interest. Was illegal in the 1400s.
You are not profiting, just asking for repayment of capital and providing capital for opportunity.
You could also think of it as venture capital.
You are not profiting, just asking for repayment of capital and providing capital for opportunity.
You could also think of it as venture capital.
Unfortunately not deductible
Donations to the Catholic church in australia are tax deductible. They are a registered charitable organisation.
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