Charity makes economic sense, even beyond Christmas season

By XNIRAKI

KENYA: It seems the position of mayor was abolished in the new political dispensation. It is, therefore, likely that we shall not hear of the Mayor’s Christmas tree-lighting ceremony and donations to various charitable causes. Maybe there will be governor tree-lighting ceremonies. 

Cities and towns are special in many ways and should have got mayors with executive powers. How was this overlooked in the Constitution? The word mayor does not appear anywhere in it.

Mayors aside, there seems to be an outpouring of generosity around Christmas. Companies donate to charities or the needy, while individuals buy each other gifts. I’m told you are supposed to open the gift boxes around Boxing Day. It not clear why this generosity suddenly pours, we could be emulating Jesus or feeling guilty for our excesses in the year.

Year-round Generosity

What is not debatable is that this generosity should be there all year round.

Helping the disadvantaged is a hallmark of any advanced society, and we aspire to be one. In most countries, charity donations are tax exempt, which serves as an incentive.

Apart from sharing joy with other people through charity, there are other socioeconomic benefits that accrue from charity.

Crime is a problem in this country and other unequal societies because lots of people are neglected, without hope or  means to a livelihood. They easily drift to crime. That is why crime is more common in urban areas where capitalism is taken to excess.

In rural areas, crime is less prevalent and often less violent because there is less inequality.

Charity tries to equalise us voluntarily, unlike taxes that do that “forcibly” because you have no choice but to pay them. Some will argue it’s through voters’ consent, yet if there was a referendum to abolish taxes, it would be won with a landslide.

Interestingly, we have been quick to import lots of western ideas but not charity.

There are too few foundations in Kenya that can rival Rockefeller or Ford foundations. Even the apparent successful charities or NGOs like Kenya Red Cross are not indigenous. Which Kenyan charity is as indigenous as Equity Bank?

When shall we realise that charity immortalises us?

Well-defined causes

Interestingly, it is charity that has partly contributed to the phenomenal growth of Equity Bank. By sponsoring Kenyan children through school from primary school to university, Equity Bank has endeared itself to most Kenyans.

The leverage on charity becomes more pronounced when you consider the intergenerational effects of education. Why are other older and more international banks not doing the same?

Some could argue charity exists big time in Kenya but in subterranean form. People do not need to keep reporting what they have given or donated. We give tithes, pay fees for our relatives and donate to harambees and other causes. Lots of NGOs claim they are in charity and have well-defined causes.

Others argue, almost to the point of conviction, that our traditional African societies were overflowing with charity.  Neighbours shared a lot and helped each other particularly during time of distress.

That charitable spirit has been diluted by capitalism with a human face.

In economics classes, the word charity is rarely mentioned. More palatable terms like welfare are preferred, though still disdained. We keep saying there are no free lunches.

Economics seems to assume there are no needy people in society. Our leaders and policy makers seem to easily absorb that. Yet, we are unequal from birth, endowed with different abilities.

The work of the Government goes beyond traditional roles like maintaining law and order, and into taking care of the disadvantaged. In those countries that we admire, the unemployed and disabled get welfare cheques to ensure they can feed themselves or get shelter.

That can also happen in Kenya, all year round, not just around Christmas time.

Making it happen

We can supplement Government efforts in making our society more livable by being more charitable. As governments, both central and at the counties, charge more levies, it is time some of that money was channeled to charity.

We need a fully fledged charity industry in Kenya with tangible results. Some could argue Corporate Social Responsibility (CSR) is the paved road to charity.

Finally, charity helps us find meaning and purpose in a planet plagued by meaninglessness.

Let the spirit of Christmas live beyond Christmas.

Merry Christmas, my fellow country men, and make 2014 a prosperous year.

The writer is  a lecturer and MBA programme co-ordinator, University of Nairobi.

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