Service Delivery Organizations

This 1987 study still provides some of the most comprehensive data on charitable giving by the wealthy. Giving by top wealthholders at death tends to be much larger than annual giving during life, wealth has only a limited effect on lifetime giving, and giving is more correlated with realized than with economic income. The last conclusion implies that tax incentives to avoid realizing income tend to reduce giving. Also, that top wealthholders often forego available tax saving demonstrates both a lack of planning and the extent to which they gain psychic benefits from wealthholding itself.

This brief highlights trends in the number and finances of 501(c)(3) public charities, as well as key findings on private charitable contributions and volunteering, two vital resources to the nonprofit sector. Figures on giving and volunteering include the most recent data available. Data reported on the nonprofit sector are from 2007—a snapshot of the sector just before the U.S. economic recession.

President Barack Obama on January 22 signed into law a provision allowing charitable gifts made for Haiti relief during February and most of January 2010 to be deducted on 2009 federal tax returns. This noble sentiment would work a lot better if deductions were allowed for all giving made to qualified charities by April 15.

Joel Fleishman, author of The Foundation: A Great American Secret, discusses the crucial role foundations play in fostering social innovation, breaks down the recent trends and misfortunes that shape the nonprofit sector today, and urges foundations to find greater success through greater openness.

Urban Institute author Joseph J. Cordes talks about the recession's effect on nonprofits and the premise behind his book, Nonprofits and Business. The book, coedited with C. Eugene Steuerle, examines an emerging trend blurring the lines between these two sectors as nonprofits adopt more business-like practices and for profit businesses take on charitable activities.