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With the 15% tax comment, I think this is relevant for venture capitalists only, e.g. private equity investors that buy failing companies and turn them around. They may also buy hedge funds etc and that is just one example. The tax break was because they were taking a huge personal risk (around 80% of these companies fail) and that they are 'helping' failing companies etc etc. It is getting reviewed though as the private equity investor is no longer just purchasing failing companies but putting large amounts of cash in to large successful companies in the name of development and restructuring, so the tax break is now perceived as unfair and not relevant given this.


I see that charities are run as Domitianus describes. They can be like any company with fees paid to investment managers and any other services that are appropriate. I think they obviously compare the cost of paying an external agency (and the subsequent higher annual donations) with the donations received when not employing the agency. Their goal is to get the highest amount of ?, so the chuggers must add value or they wouldn't exist.

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