Today’s Treatment : Original Data Gathering has no Value
In many countries, Labour is functional value delivered separately from asset value, where the Calculation is: Appraised Asset Value (minus) Labour Expense to deliver Asset (equals) Net Credit Value to claim Charitable Donation Tax Credits.
Fig.1.0. – Today’s usual calculation
But there is a challenge when we want to directly donate Data. Canada does not permit direct Data donations.* Data is classed as an Asset, and Labour is necessary to create it, but Data Labour is defined as un-claimable value. An Expense, not an Asset.
The new question: What if Countries directly reward newly created Information Donations by rethinking what New Information actually is?
Using this, I’ve proposed a new solution: converting Labour Expense to Real Property. This is considered impossible and shocked accountants.
GovCanada is evaluating the method.
Rethinking Information’s fundamental nature
The innovation here is the idea that New Data must be “made Real” and then “converted to Utility” to be a Asset. Creating Data means collecting entirely new Raw (“Wild”) Information that has intrinsic value in-and-of itself.
And that means creating a twinned entity that is both a Real Property Asset and a Labour Expense:
The cost to collect (“make real”) the Raw Asset; and
The expense to convert Raw (Value) to Utility (Value):
Fig.2.0. – The new calculation
* There is a workaround but it has high capital cost and extraordinarily high risk for the donor; because Canada’s federal cabinet expects donors to donate 100% of the benefit but subsidize 100% of the risk , for government. Why would any private sector donor do this?