[Inside Chodong] The Many Facets of Donation

[Asia Economy Reporter Kim Jong-hwa] After Ip-dong (立冬) on the 7th, the minor snow (小雪) on the 22nd, which marks the beginning of ice formation, is approaching. News of warm-hearted acts such as sharing kimchi for love and donating money to help underprivileged neighbors, which start appearing one by one in the media at the threshold of winter, is truly heartwarming.

In particular, although there are concerns that donations might decrease significantly this year due to the severe economic impact of COVID-19, there is also hope that the sense of fulfillment and joy derived from giving up a portion of one’s share for those in difficult circumstances will not be easily abandoned.

The dictionary definition of 'Donation (寄附)' is "giving property, etc., for charity or a noble cause without expecting anything in return." While the act of sharing is the same, a closer look reveals that donations come in quite diverse forms.

First, there is noblesse oblige. The famous family motto of the Choi family of Gyeongju, "Make sure no one within 100 ri starves to death," comes to mind. Since 100 ri is about 40 km, this is a declaration that the wealthy themselves are responsible for the livelihood of the people living in that wide area. They accepted the wealth and class gap as it was but opened a path for coexistence through philanthropic donations.

On the other hand, there are donations stemming from selfish altruism. This seemingly contradictory term is easily understood when thinking of the currently popular 'ethical consumption.' Standing in front of a convenience store beverage fridge, thirsty, but seeing a label that says part of the proceeds will be donated to children in underdeveloped water-scarce countries makes one feel that their choice is rational and meaningful.

Many people enjoy giving gifts not only because they like receiving them but because they enjoy seeing the recipient happy with their gift. There is a desire to do things that benefit oneself, but this selfish desire is simultaneously combined with altruism that cares for others.

Collecting donation receipts, which is often recommended as a great tip for getting a large year-end tax refund, might also be an example of selfish altruism. Thanks to strong inducement policies that provide tax deductions equivalent to the donation amount, donating has now become a part of everyday life.

Of course, there are also negative effects where selfish motives are so clear that fraudulent donations occur. The National Tax Service conducted a sample survey of 42,400 people out of 8.5 million who claimed expenses or tax deductions for donations of over 1 million won during five years (2014?2018 tax years), revealing that 12,300 people, about 30%, received deductions with false donation receipts.

There have also been cases where donations sparked small but meaningful social experiments. The school store at Pandong Elementary School in Boeun County, Chungbuk, is operated by a social cooperative composed of students, teachers, and parents. A donor gave 1 million won to the cooperative, saying, "I want to use the money for a good cause in the name of my late mother."

While considering how to use this money, the cooperative accepted a teacher’s suggestion, who was saddened by the fact that students’ use of the store varied depending on their family circumstances, to give all 41 students in the school 2,000 won worth of school store currency weekly for 12 weeks starting from the first week of November.

This is essentially a children’s version of the basic income, which is actively discussed these days. It will be interesting to see what changes this basic allowance experiment in a small rural school will bring to the students.

Whether it is for self-satisfaction, tax benefits, or social perception, regardless of the intention or purpose, it would be great if the culture of donation spreads and settles more widely throughout Korean society than it is now.

Whether you set up an automatic monthly transfer to a charity, drop spare change into the Salvation Army donation kettle soon to appear on the streets, or visit a local store whose sales have plummeted due to COVID-19, any method is fine. What is coexistence but that?