# Legal incentives

`kaal:entity:legal-incentives`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `legal-incentives`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 1 works, 2021 to 2021.

**2021**

- [3981021-001](https://wulfkaal.github.io/claims/3981021-001) [failure/asserted] *(failure mode)* -- Existing legal incentives in many jurisdictions produce so called Zombie Charities, with the consequence that donative intent often cannot be optimally fulfilled.
  > Existing legal incentives often lead to so called Zombie Charities in many jurisdictions. The donative intent can therefore often not be optimally fulfilled.
  Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021
- [3981021-007](https://wulfkaal.github.io/claims/3981021-007) [failure/argued] *(failure mode)* -- Because boards and donors seek to preserve endowments rather than spend them, funds accrue tax free long after the donor has taken the deduction, which runs counter to the spirit of the rules governing charitable deductions and may contribute to harmful inefficiency.
  > Rather than funds being employed immediately, the funds are allowed to accrue tax free. 49 This may run counter to the spirit of the rules governing charitable deductions and may contribute to harmful inefficiency.
  Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021
- [3981021-008](https://wulfkaal.github.io/claims/3981021-008) [failure/evidenced] *(failure mode)* -- Although the five percent annual payout is only a legal minimum for foundations under 2021 law, many boards treat five percent as the default rule, which entrenches minimal disbursement.
  > As the law stands in 2021, foundations are only required to spend 5% of their assets a year.51 Although this is a minimum requirement for foundations, many boards view 5% as the default rule.
  Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021

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**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.