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The big charity heist

Against Charity
By Daniel Raventos & Julie Wark
AK Press, 2018
294 pages, $16.95

One often hears that we should 鈥済ive to charity鈥. Is this a good idea? Daniel Raventos and Julie Wark wrote their view in Against Charity. Admittedly, the title is a give-away.

Charities aren鈥檛 new, but in modern capitalist societies, many states have legislated to regulate charities. In this way, 鈥渢he crumbs from the rich man鈥檚 table can safely be given to the poor鈥.

This, Raventos and Wark say, benefits the rich more than the poor. The 鈥渞ich man 鈥 prides himself on his generosity, gets tax deductions, gives his little homilies and gets some wonderful advertising to brush up his image if he鈥檚 a celebrity鈥.

Beyond that, donations trap the poor inside a cycle of gift-giving and mutual obligations. They have to return the favour. Since centuries, the poor have been told, 鈥渄on鈥檛 chop off the hand that feeds you鈥.

Charities are by no means small fish. The current 鈥渞elief aid economy [is] worth about US$156 billion鈥. Its biggest supporters meet in Davos for the World Economic Forum, issuing ideologies such as 鈥渞esilience 鈥 a euphemism for survival of the fittest鈥.

Charity creates obligations on the part of the poor. In short, charity 鈥渋s an assault on the three basic principles of human rights: justice, freedom and human dignity鈥. It creates dependencies while cementing the inequality under capitalism as donations depend solely 鈥渙n the will of the donor鈥.

Donations are not democratically legitimised. There is no state agency securing the rights of the poor. Donations aren鈥檛 rights 鈥 they are give-aways that depend on the whims of the rich.

Also, charities work for themselves as 鈥渕any charitable foundations make 鈥 money out of the plight of the wretched of the earth鈥. At the same time, donating to the poor is also done 鈥渢o shore up the class system鈥. They prevent the destabilising effects of poverty.

Historically, giving to charity has always supported the 鈥渟ocial status [while] guaranteeing priestly privilege鈥.

In modern capitalism, this hasn鈥檛 changed. The author鈥檚 write: 鈥淭o give one example, David Beckham, with a family (Brand Beckham) fortune of nearly half a billion pounds (which makes him richer than the queen) said in a recent interview that he hopes to be remembered 鈥榝or his charity work as much as for his football.鈥

鈥淎nd it turns out that he was doing his charity work because he was really hoping for a knighthood.鈥

Beyond the hopes of a second-class celebrity, charity giving has also more serious consequences. In 鈥渢he 1974 Bangladesh famine [for example], approximately 1.5 million people died, mainly poor labourers and non-landowners, two key facts were fundamental. First, the state rationing system and market led to speculative hoarding and hence rising prices, and, second, the US ambassador had made it clear that, since Bangladesh exported jute to Cuba, the US was not going to give food aid.

鈥淏angladesh yielded and stopped the exports but the food came too late.鈥

Facts like these are excluded by the corporate mass media. Instead, mass media thrive on celebrities such as Bill Gates 鈥 one of the world鈥檚 biggest aid givers. 鈥淗is 鈥榩leasure-dome,鈥 Xanadu 2.0, with lots of security (walls and towers鈥irdled around), covers 600,000 square meters. Half a million board-feet of lumber (500-year-old Douglas trees) went into this monstrosity (bye-bye 鈥榝orests ancient鈥) with twenty-four bathrooms, six kitchens, twenty-three car garages, and lakeshore frontage with sand annually imported from St. Lucia.鈥

Still, Bill Gates is widely known as a philanthropist. This philanthropist, 鈥渋t is calculated 鈥 earns $250 every second or about $20 million a day. He鈥檚 the 鈥榤ost generous person鈥 in the world with donations exceeding $27 billion (to his own foundation). He earns money much faster than he gives it away鈥.

Not to be outdone, 鈥渟uper-greenie Leonardo DiCaprio zooms around in his private jet lecturing on climate change鈥. Meanwhile, 鈥渢he Leonardo DiCaprio Foundation is being questioned, in particular when it was found by a US federal probe into money laundering to be linked with a $3 billion scandal involving a Malaysian sovereign wealth fund鈥.

Apart from this, the authors write that celebrity charities also involve cases such as:

  • At 鈥渢he 2005 World Economic Forum, Sharon Stone heard the president of Tanzania describing how people were dying from malaria because they lack basic amenities. She stood up and pledged $10,000. Then she challenged business leaders to match her and, in no time at all, a million dollars were offered. But the pledges weren鈥檛 honoured and the United Nations had to make up the shortfall.鈥
  • UNICEF is so impressed by banging bucks that in 2002 it teamed up with the McJob company to invent a McDonald鈥檚 World Children鈥檚 Day, by which means it raised about $20 million in 24 hours. UNICEF鈥檚 British spokesperson prated: 鈥淯nicef is protective of its brand and chooses partnerships carefully鈥︹

UNICEF is a 鈥渂rand鈥, so McDonald鈥檚 low wages and poor working conditions are part of the deal. 鈥淢cDonalds is accused of dodging, from 2009 to 2013, corporate tax worth about 鈧1 billion鈥ou鈥檇 think McDonalds could have given UNICEF a little more for its whitewashing job.鈥

In 2013, McDonalds made a profit of $28.11 billion. Donating one-tenth of 1% of corporate profits, a good name comes really cheap. Overall, 鈥celebrity charity is [a] makeup job for an unsustainable system. It helps to keep people out of politics, as Lewis Lapham wrote in The Wish for Kings, for belief in princes, princesses and fairy-tales is easier than political engagement.鈥

Presenting celebrities as charitable assists the global amnesia about capitalism鈥檚 rising inequalities, poverty, global environmental vandalism, etc. It camouflages the fact that 鈥渢he fate of humanity is concentrated in the hands of people like the 2,500 attendees (83% male; average age about 50; one-third American; using 1,700 private jets; paying $71,000 subscription fees; and largely unconcerned about climate change) of Davos, a social engineers鈥 clique funded by 1,000 of the world鈥檚 biggest companies鈥.

It also disguises the fact that 鈥淢other Teresa of Calcutta was a perfect charity idol for a rich world with a poor conscience. The good nun wasn鈥檛 fussed about praising the atrocious Duvalier family of Haiti as they funded her projects, or accepting millions from devout Charles Keating, one of the US鈥檚 most notorious fraudsters, or from big-time pension-funds embezzler Robert Maxwell鈥.

Then there is the 鈥渆nvironmentalist Harrison Ford, vice-chairman of Conservation International (accused of green-washing for BP, Cargill, Chevron, Monsanto and Shell) who almost crashed into a Boeing 737 when he landed one of his eleven planes on a taxiway鈥. The list is endless.

The big charity heist operates inside charities as well. In many countries, the neoliberal state offers the rich lucrative tax cuts when donating. Meanwhile, charities themselves rake it in big time.

Simultaneously, we are told 鈥渃harities help the poor鈥. Not so: in 鈥渢he US alone, there are more than 200,000 charitable organisations and Americans were set to give $400 billion to charities at the end of 2016 鈥 yet poverty rates keep climbing: 20% of American children are from families that struggle to put food on the table, and the number of homeless minors has grown by 60% in the last six years鈥.

In a nutshell, here is how the charity heist works: 鈥渁 billionaire can set up, tax-free, a charitable trust to give his kids a lifelong job and salary, and no estate tax is due on the 鈥榙onation.鈥 The trust is protected from creditors because, by law, the heir does not own it but only 鈥榗ontrols鈥 it鈥.

Beyond that, the neoliberal state can offload its responsibility for the poor to charities that, in turn, look good, as do celebrities when giving to the poor while receiving tax cuts and the ability to give jobs to friends and relatives. Meanwhile the poor are kept in dependency and obligation to the rich.

It is an ingenious system that makes the rich richer and the poor poorer. It seems to benefit everyone but the poor. Meanwhile, capitalism is stabilised.

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