Many have seen news about wealthy individuals donating land, goods, or money to hospitals. Some even establish foundations to help society. At the same time, these acts of giving can yield greater returns. Thairath Money invites you to explore the wallets of the rich to understand why they choose to donate to hospitals and even set up foundations.
Public hospitals face rising expenses, with many relying on fundraising donations to support their operations. Donors receive multiple benefits from a single donation, usually in three main areas.
1. Tax deductions: The Revenue Department allows individuals who donate to public healthcare facilities via the e-Donation system (on an approved list) to deduct up to twice the actual donated amount from their taxable income, though not exceeding 10% of their net income. For those in the highest 35% tax bracket, this is a significant tax management tool that can save substantial money.
2. Medical treatment discounts: Many hospitals offer benefits to donors who contribute to affiliated foundations or directly to the hospital. Donations of 30 to 50 million baht or more can grant discounts of 50-100% on treatment costs for both outpatients (OPD) and inpatients (IPD). Examples include the Siriraj Hospital Foundation, Ramathibodi Foundation, Chulalongkorn Hospital, and the Thai Red Cross Society.
However, this does not mean donors pay nothing when hospitalized. Specific conditions apply, such as discounts on room and treatment fees. Additional special expenses, like chemotherapy drugs or private nursing, may not be fully covered, even though donors might receive VIP-level care.
Importantly, hospitals often state these conditions can be changed without prior notice. Legally, this means these rights are not guaranteed for life and new conditions may be introduced in the future.
3. Social prestige: Many have seen donor names displayed on pillars or building entrances in hospitals. This recognition can create pride in contributing to public welfare and serves as a social and emotional reward beyond monetary value (for some people).
We consulted Asst. Prof. Dr. Yuttana Srisawat (Ajarn Mik), an expert in tax law and founder of iTAX, who told Thairath Money that individual donations can already qualify for tax deductions (if made to organizations listed by the Revenue Department). However, establishing a foundation usually stems from the founder’s desire to contribute to society with additional advantages.
1. Establishes clarity and formality: Foundations define clear social objectives, enhancing credibility and facilitating coordination with other agencies. They may also face less social resistance compared to fundraising under an individual's name.
2. Simplifies management and tax reporting: A foundation allows clear separation of personal finances from funds used for social activities.
3. Creates a family legacy alongside Corporate Social Responsibility (CSR): It builds a positive image while serving society.
For example, if a wealthy person buys water to distribute in an alley, they cannot deduct this from taxes. But if funds are first transferred to a registered charitable foundation, which then purchases the water for donation, additional benefits apply. In Thailand, many families establish foundations to structure their social contributions clearly, control funds, and sustainably enhance their family’s image beyond one-time donations.
On the downside, foundations can be misused for money laundering, such as donating illicit funds and then using them for other purposes like contractor payments or purchasing goods. This is a negative example that still occurs in Thailand and worldwide.
Overall, donations are part of the financial planning of the wealthy. Many prominent Thai families establish social foundations partly to preserve the founder’s intentions and reduce potential family conflicts. This approach reflects giving that is not just charitable but strategically aimed at maximizing the effectiveness of the funds.
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