Tax-deductibility spurred the development cooperation debate
At a panel discussion organized by the Ministry for Foreign Affairs, candidates standing for the Finnish Parliament in the spring elections were moved to debate aid for children in developing countries, the level of development cooperation financing, the results of aid and bringing Finnish added value to developing countries. Candidates were especially ardent in taking stands for or against tax-deductibility for development cooperation.
Plan Finland and World Vision have surveyed Finns’ attitudes towards child sponsorship in development cooperation. The fresh study, financed by the Ministry for Foreign Affairs and carried out by the market research organization Taloustutkimus Oy, was issued on 24 February. The participants in the panel discussion at the event were Pertti Salolainen (National Coalition Party), Kimmo Tiilikainen (Centre Party), Christina Gestrin (Swedish People’s Party), Zahra Abdulla (Green League), Jesca Muyingo (Social Democrats), Heikki Patomäki (Left Alliance), Markku Vuorinen (Christian Democrats) and Simon Elo (True Finns).
“Although clearly more than half of Finns know about child sponsorship, the figure could still be higher,” said Counsellor Marjatta Laires from the Unit for Non-Governmental Organizations of the Ministry for Foreign Affairs. In her opinion, new sponsors might be found particularly among people over 60 years of age. “Acting as a sponsor provides a direct link between Finland and a developing country. The activity’s strength lies in its concreteness, a factor which was especially appreciated by the respondents. Concreteness was also associated with citizens’ positive conceptions of the efficiency, impact and effectiveness of activities,” she continued.
“Child sponsorship is not just a marketing tool. Much effective development cooperation t can be carried out through a child sponsorship programme. Child sponsorship work makes the value and rights of the child the base of activity, and this activity supplements the rest of Finland’s development cooperation well,” says Executive Director Tiina Saukko of World Vision Finland.
Executive Director Riitta Weiste of Plan Finland says that the right to deduct donations to development cooperation in taxation would inspire companies and private citizens to support development cooperation. The possibility of tax-deductibility for donations might entice one in ten people who answered the child sponsorship study to become a regular contributor.
“Education helps people to cope themselves. Finns want to help, and in particular the wish to support the education of girls is heart-warming,” said Helsinki municipal councillor Zahra Abdulla, a Green League candidate.
“Tax-deductibility would be a good way to get people to donate more. The most important thing is to give development aid, and citizens can supplement the official figures,” Helsinki municipal councillor Markku Vuorinen, a candidate for the Christian Democrats, thought. Vuorinen has himself participated in missionary work.
Child sponsorship work raises future helpers
“Education and health services are the foundation of all development. Child sponsorship work also has indirect benefits; it influences attitudes and helps commit future helpers to development cooperation. International solidarity and peace are also in the best interests of Finns, so it is very important to promote peace and security,” said news reporter Jesca Muyingo, a candidate for the Social Democrats. In her view, tax-deductibility has had a great impact on willingness to donate, for example, in Great Britain. “Tax-deductibility would be a good thing in principle, but when it is implemented, one should be prepared for a massive increase in the number of actors.”
“The True Finns are not in favour of increasing development cooperation funds to 0.7 per cent of the gross national income. More important are the effectiveness of aid and the delivery of aid to its destination.” Simon Elo, a candidate for the True Finns, emphasized the importance of voluntariness: “A voluntary development cooperation fee and tax-deductibility are ideas worthy of support.”
Pertti Salolainen, Member of Parliament (Coalition Party) and Chair of Parliament’s Foreign Affairs Committee said that the Foreign Affairs Committee was unanimous in its support for attaining the 0.7 per cent target. Salolainen also said he had preliminarily determined the opinion of the Ministry of Finance concerning tax-deductibility. The Ministry was not encouraging on the issue of expanding tax-deductibility, since the trend is to narrow the scope of tax-deductibility rather than widening it.
Tax-deductibility divided opinions
Member of Parliament Kimmo Tiilikainen (Centre Party) stated that the study on child sponsorship confirms that Finns wish to contribute to development cooperation efforts. He did not warm to the idea of tax-deductibility for donations as it might reduce official development aid. “It’s possible that we’d end up cutting a piece off one end of the blanket and adding it to the other end. The State economy is in trouble, and which taxes will be increased and where cuts will be made are being considered at present.”
Heikki Patomäki, Professor of International Relations and a Left Alliance candidate, was strongly opposed to tax-deductibility. In his opinion, voluntary charity leads to dependence on aid among those assisted and is the wrong way to implement solidarity. “If a person genuinely wishes to help, one shouldn’t at the same time call for erosion of the tax system. Basic education for all the world’s children could be organized by means of global taxation,” Patomäki said.
Christina Gestrin. Member of Parliament for the Swedish People’s Party, thought that child sponsorship work was a way in which people seek concrete contact with daily life in developing countries. She said that achieving the 0.7 per cent target is an important objective to the Swedish People’s Party. She also thought that tax-deductibility would be difficult to implement during the coming electoral term.
According to the study now published, nine out of ten Finns have heard of child sponsorship and 85 per cent of those interviewed consider it a good way to support children in developing countries. The respondents considered support for the education of children and young people the most important; support for children’s health was second and promotion of the position of girls and women came third.
Six per cent of Finns, or about 240,000 people, are sponsors themselves and about 280,000 Finns are considering becoming a sponsor. According to the study, Finns would clearly increase the donation of money to development cooperation if the donations were tax-deductible. The study showed that as much as 43 per cent of Finns would absolutely or probably increase their donation of money to development cooperation if the donations were tax-deductible.