fake charities undermine competition and evade tax
An Australian Tax Office blog highlights the issue of DGR charities undermining competition in the private sector and ripping off taxpayers through tax evasion. This includes funnelling “business or income producing activities through such a foundation” to ‘opt out’ of the tax system.
I’m also aware of charities who generate income through commercial activities and claim they benefit a charitable cause but marginal funds, including donations, are actually allocated to support their purpose over the medium term. If I was a private sector competitor I would be furious but I doubt they are aware of this rort and it’s hard to prove unless you have more transparent public information on how funds are spent.