DEVELOPMENT OF CHARITY BASED ON TAX INCENTIVES: REVIEW OF FOREIGN PRACTICE

Many countries recognize the important and significant role of the non-profit sector in building a strong, caring, socially responsible society, as well as in promoting employment, well-being and economic growth. Many non-profit organizations focus on charitable projects. Research shows that the provision of tax incentives or corresponding tax credits and deductions to such organizations (and their donors) encourages the development of charitable activities and provides its participants not only with effective use of funds, but also with financial incentives from the state. The article discusses some practical aspects that reflect the development of charitable activities based on tax incentives, credits and deductions for donors and charitable organizations. The author analyzes the approaches of the countries of Europe, North and South America, as well as the Russian Federation in the application of tax mechanisms for private and corporate charity. It is concluded that, despite the fact that charitable foundations, acting as intermediaries between the donor and the recipient and making efforts to accumulate funds and their targeted distribution, often cannot expand their field of activity just because domestic legislation does not promote the development of a particular type of activity. Therefore, in the near future, in the absence of changes in the current regulatory legal support, the charitable activities of foundations will not be developed, and the charity itself will not receive a reputation boost.