"Donate 40 million baht and get lifelong free medical care."
This is the statement of Dew - Weerawat Walaisathien, a business investor and influencer, who recently sparked renewed attention by explaining the real reason why some wealthy people do not necessarily buy life insurance.
From Dew’s perspective, managing risk doesn’t have to rely solely on insurance policies; it can also be achieved through donations, which benefit both society and one’s personal life planning.
In this article, Thairath Money aims to take a deeper economic look at why donations are considered a form of "wealth management" that reflects the mindset of affluent individuals.
In truth, donating to hospitals as a "major donor" offers more than just the privilege of lifelong free treatment; donors also receive various benefits in public health rights, reputation, and tax deductions.
This may explain why "hospitals" have become a popular destination for major donors in Thailand, as behind each substantial donation there is often "value returned" far beyond common expectations.
1. Tax deductions on donations up to twice the amount given
Fundamentally, according to the Revenue Department, individuals donating to government hospitals and the Thai Red Cross can deduct the donated amount from their taxable income, but not exceeding 10% of net income after expenses and other deductions.
For example,
if someone has a net income after deductions of 50 million baht and donates 40 million baht to a state hospital, they can deduct up to 10% of net income, or 5 million baht. However, if the donation qualifies for "double deduction" programs, they can deduct up to 10 million baht.
Thus, beyond "giving," donations serve as legitimate tax planning to reduce financial burdens.
2. Benefits in public health services
Besides tax advantages, many public hospitals and medical schools offer special privileges to major donors, such as:
These benefits depend on each hospital’s policies, with clear criteria and procedures.
For example, the donor benefits from Rajavithi Hospital Foundation include the following medical fee reductions:
- Donors contributing 200,000 to 500,000 baht (ordinary patrons) receive a 25% reduction on inpatient fees for 15 years.
- Donors contributing 500,000 to 1 million baht (extraordinary patrons) receive a 30% reduction on inpatient fees for 15 years.
- Donors contributing 1 to 5 million baht (honorary patrons 1) get a 30% reduction on outpatient fees, 50% on inpatient fees, and 30% on special room and meal charges for 15 years.
- Donors contributing 5 to 10 million baht (honorary patrons 2) receive a 50% reduction on outpatient fees for themselves and family members (children, spouse, parents), 50% on inpatient fees, and 50% on special room and meal charges for life.
- Donors of over 10 million baht (honorary patrons 3) are exempt from outpatient fees for themselves and family members, receive a 50% reduction on inpatient fees, and full exemption from special room and meal charges for life.
3. Social and reputational benefits
Beyond financial gains, large donations build "social capital" for donors through:
For businesspeople and celebrities, these represent "long-term image investments" that build trust and favorable public relations.
Moreover, donors meeting conditions may receive royal decorations such as the Most Exalted Order of the White Elephant from the Rajavithi Hospital Foundation. Donations need not be a single payment or completed within one year.
For example, the 1st class Most Exalted Order of the White Elephant (P.P.) is awarded to donors contributing 30 million baht or more in assets.
Overall, while donating to hospitals may be seen by the public as an act of kindness, for many millionaires it is a "financial strategy" that integrates health security, tax management, and social value creation simultaneously. Ultimately, "giving" may not be a loss but a way to "allocate" wealth that the law allows to maximize benefit.
Follow personal finance news and financial planning with Thairath Money to help you "manage money, manage life."https://www.thairath.co.th/money/personal_finance
Follow the Facebook page: Thairath Money at this linkhttps://www.facebook.com/ThairathMoney