MOUNT PLEASANT, IA. -- During these turbulent economic times people are concerned about their jobs, their children’s futures, and the direction of our country. In looking for ways to save money, often one of the first items to be cut from the family budget is charitable giving.
In 2008, giving in the United States totaled over $307 billion to over a million different organizations. This was a drop of 5.7 percent from 2007, according to the Giving USA Foundation, which conducts an annual study on philanthropy. However, the $307 billion figure represents an average of over $1,000 for every man, woman, and child in America.
The American tradition of philanthropy is often demonstrated best by those who come from difficult circumstances, work hard and practice integrity, then following their success, turn and help others. This idea was made popular in the dime novels of the late 1800s written by Horatio Alger. The Horatio Alger Association of Distinguished Americans was set up in 1947 to honor such real life individuals, as well as provide scholarships and mentors to young people who themselves are demonstrating these same principles.
There are currently six Iowans who are members of the Horatio Alger Association: Roy Carver, John Colloton, Barry Griswell, Lee Liu, John Pappajohn, and the late Marvin Pomerantz. In addition, former Iowan, Henry B. Tippie, is a member, but credited to the State of Texas. They, like many of today’s philanthropists, focus on helping institutions of higher education and students, recognizing the benefits of their own education and encouraging others.
President Obama’s budget and tax proposals advocate reducing the tax deductions for charitable donations from 35 percent to 25 percent for households making more than $250,000. “If this tax proposal passes, it may force charities to turn to government, with resulting increased regulation and control of their activities. Taxpayers will not be encouraged to take their own initiative and demonstrate good stewardship,” said Deborah Thornton, a Research Analyst with Public Interest Institute in Mount Pleasant, Iowa.
In 1985, the Association of Fundraising Professionals established National Philanthropy Day, November 15, to encourage, recognize, and honor charitable giving. National Philanthropy Day is a good time to pause and review our own giving. The end of the year is coming up; sit down and write that extra check to your favorite charity. Then be sure to deduct it on your 2009 taxes – next year you may not be able to.
Public Interest Institute's POLICY STUDY, “Stewardship in Iowa: Our Own Horatio Algers,” and INSTITUTE BRIEF, “Philanthropy, Taxes, and Our Own Horatio Algers,” are available at www.limitedgovernment.org.
For an interview or more information on this issue, contact Deborah Thornton, Public Interest Institute Research Analyst.
Recent Comments