From scholarships for education to food banks, from medical care to job training, from conservation to arts and culture, foundations and nonprofits enrich, serve and touch all of our lives. In a groundbreaking study in 2008, economist Robert Shapiro found that each dollar of foundation giving in our country generates $8.58 in economic activity in the communities, regions and states in which they serve. Additionally, nonprofit organizations employ more than 10.5 million people – approximately 10% of all private workers in the United States. In addition to serving our communities, they are a critical part of the fabric of our national life.
The health and vitality of nonprofits are closely linked to the health and vitality of our neighborhoods and communities. Foundations and nonprofits help not only economic health, but the social, educational and civic life in our communities.
Though there are foundations in other countries around the world, the spirit of generosity and care for neighbors is expressed in very unique and special ways in the United States. The large number of charitable foundations here is just one expression of how generosity, creativity and service happen in our country. Individuals, families, churches, service clubs and many other groups join the work of nonprofits to make a difference in our everyday lives. This has been true from the founding of our country and the extraordinary way that churches, fraternal orders, community groups and other associations of volunteers have rallied to serve and care for their neighbors throughout history.
Unfortunately, the current economic challenges our country is facing have led some lawmakers to consider balancing government budget deficits by reducing or eliminating the laws and practices that support and protect the work of nonprofits and foundations. The charitable deduction, philanthropic freedom and not taxing nonprofits are a few examples of the ideals related to philanthropy that need to be protected and preserved. Together these kinds of values encourage the spirit of generosity and the practice of volunteerism that have distinguished American civic life from the earliest of days of our founding as a democratic republic.
Increasingly, community and government leaders recognize that when government is limited and focused, businesses are thriving and nonprofits are free to do good work, we all benefit. Also, encouraging and increasing the ways for citizens to express their generosity not only helps the myriad of nonprofit organizations serving the most pressing and challenging needs among us, but it also nurtures innovation, promotes healthy lifestyles, builds citizenship and helps communities flourish.
As one observer remarked, “A nation’s generosity reflects the depth of its soul and the breadth of its influence into future generations.” May it be said of us that we live in generous times.
