Philanthropy = Economy

This is soooo a longer post I need to write eventually detailing my move from socialist leanings to fiscal conservatism, but for now I'll offer up the current trends. Not that I'm a big fan of the Christian Science point of view, but the Christian Science Monitor had a great article recently:

The Christian Science Monitor
By Mark Trumbull

11/27/2006

Everybody knows Americans are big givers. But their charitable impulses keep generating surprises.

Consider just a few conclusions from recent research:

* Charitable giving plays an even larger role in the economy than is suggested by some $260 billion in annual contributions. Each dollar of giving appears to create $19 of extra national income, according to a book released this past weekend.

* Demand for nonprofit services gets proportionately bigger, not smaller, as a locality's income rises, a Federal Reserve economist finds.

* The philanthropy of the wealthy may not hinge on tax incentives to the degree many believe. In one new survey, a majority of wealthy givers say they would contribute the same amount if the estate tax were abolished. Ditto, they said, if they could no longer deduct the value of gifts from their taxable income.

These disparate studies are shedding light not just on who gives but also on why they give and what their actions mean to society. Often, the conclusions run counter to expectations.

"This is supposed to be the start of a conversation. It's the first word, not the last word," says Arthur Brooks, referring to his new book on charity, called "Who Really Cares." "We need more people thinking about [the study of charitable giving] in a serious way."

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