This would create an additional (and large) incentive for people to funnel their money through faux-charities, and to create faux-charities that’ll circuitously direct it back into the pockets of the donors, either fraudulently or legally, like Owen_Cotton-Barratt said.
There are responses you could make to this (watchdog organizations that monitor the effectiveness of various charities and governmental authority, tighter laws regarding charitable incorporation) but so far as I can see they’re all subject to the principal-agent problem.
This would create an additional (and large) incentive for people to funnel their money through faux-charities, and to create faux-charities that’ll circuitously direct it back into the pockets of the donors, either fraudulently or legally, like Owen_Cotton-Barratt said.
There are responses you could make to this (watchdog organizations that monitor the effectiveness of various charities and governmental authority, tighter laws regarding charitable incorporation) but so far as I can see they’re all subject to the principal-agent problem.
Other than that I like the idea.