U.K. Prime Minister David Cameron and President Barack Obama had found themselves united by a common enemy in their recent efforts to boost revenues at a time of austerity. On both sides of the Atlantic, the politicians managed to alienate wealthy individuals and non-profit organizations alike with proposals to clamp down on tax relief on charitable donations.

Their intentions have sparked fierce ripostes and triggered an important wider debate on the practical need for greater scrutiny of charities’ performance and the philosophical mismatch between governments’ and individual donors’ priorities.

In the U.K., the prime minister received sharp criticism when the chancellor of the exchequer, George Osborne, unveiled plans in his March budget to cap tax relief on charitable donations at the higher of 25 per cent of annual income, or £50,000 ($78,450).

In the United States, the Democrats have championed the idea of cutting tax relief on donations from 35 percent to 28 percent, in an effort to help fund Medicare, the health scheme for the elderly, and the president’s proposals to offer universal health insurance coverage.

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