FWIW, in case helpful for anyone to know, I am pretty sure that in the UK this wouldn’t be eligible for gift aid (the tax relief system for charitable donations) as gift aid cannot be claimed if the donor is receiving a benefit and this would count as a benefit. Capping the size of the “insurance fund” would not solve this (or at least not with any simple system I can think off).
FWIW, in case helpful for anyone to know, I am pretty sure that in the UK this wouldn’t be eligible for gift aid (the tax relief system for charitable donations) as gift aid cannot be claimed if the donor is receiving a benefit and this would count as a benefit. Capping the size of the “insurance fund” would not solve this (or at least not with any simple system I can think off).