Saturday, November 2, 2013

The Giving Index



The Giving Index
The Giving Index (TGI) is designed to know and rank giving to other than your own progeny, and immediate blood relatives, their children and grandchildren. All or most humans do this to some extent as extension of themselves serving the self-interest as the central driving force of why humans behave the way they do as defined by the globally known and recognized moral philosopher and father of modern economics Adam Smith.
TGI measures ten attributes of giving entities. Entities can be individuals, families, business, financial, social, cultural, religious groups, nations or international bodies.
Each entity can be given a maximum of 100 points which would signify being on the top of the TGI. The other extreme at or near zero points would mean a non-giver best.  TGI can allow comparisons within and across entities to know who thinks more or less of the well-being of others and does something to improve it with its own financial resources as if the beneficiaries are one’s own extended relatives. The more distant and different a group one gives to reflects expanding embrace of the notion of a global family. This view of globalization of one’s life and living comes close to the thinking expressed in Vedanta literature of ancient India which says “The Whole World is One Family”.
Thus, the self-interest of Adam Smith not only leads to maximization of the welfare of a society or the world through trade and investment, giving to others out of one’s economic and financial success also brings the whole world together as a human family, so giving is as much of self-interest (or should be) as maximization of one’s income and wealth.
The ten measurable attributes are:
1.       Percentage of Wealth as measured by Net Worth given.
2.       Percentage of Income measured as Gross Annual Income.
3.       Percentage of Total Income tax paid to local, national and international government bodies.
4.       Percentage of Total wealth tax paid to national and international bodies.
5.       Percentage sales tax paid to local, national and international bodies.
6.       Percentage excise and other taxes paid to local, national and international bodies.
7.       Percentage savings including contributions to public and private retirement plans as well as after tax personal savings.
8.        Percentage Tax-deductibility of charitable contributions in the country of residence of the entity.
9.       Percentage of people in any entity giving in the country of residence of the entity.
10.   Percentage tax rate prevalent in a society, taxing entity such as local, state, national, and international..
Each of the ten attributes can be given 10, 9, 8,7,6,5,4,3,2 and 1, now we define the numerical value to be given to each attribute. Wealth and income numbers are in US dollars.
Wealth: 10 percent given =10 points, 9 percent given =9 points, 8 percent given = 8 points, 7 percent given = 7 points, 6 percent given =6 points, 5 percent given =5 points, 4 percent given= 4 points, 3 percent given=3 points, 2 percent given= 2 points and I percent given =1 point. Less than 1 percent gets zero point.
Income: the same percentage giving and points earned rules.
Income tax paid: the same rules as applied to wealth and income.
Wealth tax paid: the same rules as in income.
Sales tax paid: the same rules as applied to income and wealth.
Excise and other taxes paid: the same rules as applied to income and wealth.
Savings: the same rules as applied to income and wealth.
Tax-deductibility: 100 Percent deductibility= 10 points, 90 percent=9 ….10 percent deductibility =1 meaning tax authorities are not encouraging giving through the tax code.
Giving culture: If everyone in the entity gives something then the entity gets 10 points, if 90 percent give then 9 points, if only 10 percent give then 1 point.  
Tax rate: Lower the tax rate higher the points for the taxing environment i.e. a country, state, etc.

An example:
Warren Buffet and Bill and Melinda Gates would get the following number of points in the ten attributes:
Percentage of wealth given = more than 10 percent so they get 10 points.
Percentage of income given is more than 10 percent so they get 10 points.
Percentage of income tax paid is more than 10 percent so they get 10 points.
Percentage of wealth (capital gains) is more than 10 percent so they get 10 points.
Percentage of sales tax is less say 8 percent so they het 8 points.
Percentage of excise tax say is less than 7 percent so they get 7 points.
Percentage tax deductibility in the US is 100 percent or public charities so they get 10 points.
They all give in their own group as a family so they get 10 points.
Income tax rates (especially average effective rates) in the US are lowest so people can give more so they get 10 points.
Thus, Warren Buffet gets 95 points on the charity index of 100 and so do Bill and Melinda Gates.

How about you the reader?  Calculate your own number and see where you are on TGI!

Friday, January 4, 2013

Ten Best Goals and Benefits of Mrs. Helena Kaushik Women's College Established in 1999

Ten Best Goals and Benefits of Mrs. Helena Kaushik Women's College Established in 1999

1. Higher Education of Women.
2. Higher Education of Women in  a Rural Area.
3. Empowerment of Women Through Higher Education Based Jobs, Incomes and Economic Growth .
4. Women Joining Families with Higher Education Among Their Members.
5. Women Becoming Mothers After Receiving College Education.
6. Women Contributing to Science, technology,  Business, Industry and the Economy.
7. Population Growth Slowdown with Age of Family Formation.
8. Change in Culture in Family and Society to Treat Women as Equals in All Spheres.
9. A More Civilized and Respectful Society Towards the Individual, Women and Men.
10. Women Becoming Leaders in All Walks of Life Alongside Men.

Thursday, January 3, 2013