People still ask why I take a dim view of charities and the ‘Third
Sector’, especially on the Isle of Man. I would have thought that by now it was
obvious - especially if you ever had the painful experience of sitting in a room
while those behind the worst examples try to beg money, or excuse derailing the
democratic process and delaying the introduction of open, transparent
government to the Isle of Man (I know, open, transparent, democracy….or even
government….pigs might fly first).
Luckily the excellent Chris Snowdon of Velvet Glove Iron Fist (see right) has just produced a paper for
the Institute of Economic Affairs which pretty much sums
up the problem. The paper is called Sock
Puppets: How the government lobbies itself and why (Chris Snowdon, IEA
Discussion Paper No. 39) – probably the funniest, but most accurate, title for
a serious survey on a growing social problem you will see in a long time.
The paper begins: “In the last fifteen years, state funding
of charities in Britain
has increased significantly while restrictions on political lobbying by
charities have been relaxed. 27,000 charities are now dependent on the
government for more than 75 per cent of their income and the ‘voluntary sector’
receives more money from the state than it receives in voluntary donations.”
Staggering stuff (unless, perchance, you have taken note of
all the local examples of such chicanery I have banged on about, and are
already worried about it).
While, as more of a left libertarian, I do not share all the
‘areas of concern’ identified by the IEA and other free market ‘think tanks’
(and would add a problem they don’t identify – links between religious groups and
the state and their effect when, for example, the ‘charity’ economic framework
is abused by religious bigots for their own nasty theo-fascist ends), I do
share their concern about the principles. I certainly share their conclusion,
that instead of government-run pseudo-charities “….it would be better to
restore the independence of the voluntary sector, safeguard taxpayers’ money
and rebalance civil society in favour of grass-roots activism.”
There’s a brief
summary of the paper at http://www.iea.org.uk/blog/how-the-government-uses-charities-to-lobby-itself,
or if you prefer to just go straight to the paper itself you can find it at http://www.iea.org.uk/sites/default/files/publications/files/Sock%20Puppets.pdf
.
In the comments after the IEA summary, I was particularly
taken by Phil Taylor, who says: “Could I suggest a rule of thirds? The Charity
Commission should insist on the use of some designation such as "Government
sponsored body" for any organization that accepts more than one third of
its income from government sources of all kinds but still wishes to be treated
as a charity. Once a body exceeds two thirds of its income from government
sources it should cease to be a charity and should formally become an agency of
the relevant department. It could then be monitored by the NAO and use a
.gov.uk web address, etc. Then we would all know what we are dealing with. To
re-iterate: - You could call yourself a charity as long as less than one third
of your income came from the state. - Above one third you could still be
regulated as a charity but you would not be allowed to use the word charity
when describing yourself and would have to use a designation such as “Government
sponsored body”. - Above two thirds just call yourself what you are – a part of
the government.”
Now, consider the devastating (for them) but liberating (for
the rest of us) effect on the Manx pseudo-charity racket if Tynwald looked at
that idea.
Oh, of course, they can’t. That would involve identifying
which black holes they’ve been throwing public money down, explaining why they
thought it was a good idea, and then taking back responsibility for the public services
we thought we were paying them to provide.
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