Budding Philanthropists: Mutual
Funds Help Newly Rich Share Wealth with Charities,
by Arthur M. Louis
As the current robust economy creates greater affluence, many
of the newly prosperous are turning to financial service companies
to manage their money - and help give it away. Not just for
the super-rich, charitable endowment funds are designed to
make philanthropic giving a simple, tax-efficient option for
the average donor.
Read more about charitable gift funds in the
San Francisco Chronicle:
(Budding Philanthropists/Mutual Funds help newly rich share
wealth with charities, Arthur M. Louis, Tuesday, February
New Inheritors Unlikely to be "Idle
Rich," by Diane Stafford
It's estimated that within the next 20 or 30 years, intergenerational
transfer of wealth will reach unparalleled levels-hovering
around hundreds of trillions of dollars. But according to
the following San Diego Union & Tribune article, the transfer
of assets to the next generation may increasingly include
specific philanthropic bequests:
(Knight Ridder News Service, Sunday, April
Widening Income Gulf,
by Isaac Shapiro and Robert Greenstein
Over the past 20 years, the role of the nonprofit sector in
addressing the needs of the poor has increased in proportion
to the growing disparity of wealth in the United States. This
excerpt from a report by Isaac Shapiro and Robert Greenstein
illustrates the impact of "The Widening Income Gulf"
on the distribution of income between the rich and a growing,
and some fear, permanent underclass.
by Andrew Carnegie
More than 100 years ago, steel magnate Andrew Carnegie said,
"The problem of our age is the proper administration
of wealth." At a base level, Carnegie argued in favor
of estate taxes, which ensure a redistribution of wealth.
In an ideal situation, Carnegie believed wealthy people to
be better than the government at administering their wealth
to charitable causes. Read a condensed version of this classic
piece whose message still applies today.
Billion Bonanza for Charity,
by Holly Hall and Nicole Lewis
The American Association of Fund-Raising Counsel Trust for
Philanthropy and Giving USA magazine compile a near-comprehensive
list of statistics on charitable giving each year. In 1999,
Americans gave $190 billion. Read this excerpt to find out
from where that money came, and to where it went.
for Andrew Carnegie,
by Richard Todd
Is it possible to reclaim the legacy of massive donations
and humanistic philanthropy, or are we faced with a future
of giving in order to receive tax credits? In the current
era - with multibillionaires coming out of the woodwork daily
- where has the spirit of philanthropy gone? In "Looking
for Andrew Carnegie," Richard Todd seeks to find the
true meaning of today's charitable giving.
and Open Encounters,
by Barry D. Karl
A historical perspective of private money being used for public
interests. This document serves as a vehicle to illustrate
there is nothing new about the public versus private money
debate when it comes to public policy.
The Role of Foundations in Influencing
Public Policy,by Patrick Babcock, Arturo Vargas,
Nan Aron, and Gail Christopher
Charitable organizations have played a vital role in formulating
public policy since the early 20th century. American philanthropy
has consistently been on the cutting edge of proposed reforms
on many topics, and have become a sort of "independent
sector," using their resources to influence public policy.
This paper contains a moderated discussion of the issues surrounding
philanthropy and public policy.
The Public/Private Balancing Act,
by Dennis P. McIlnay
A common misconception about foundations is that they are
"activist." The fact of the matter is that, by most
standard definitions, foundations are generally not activist
in their giving. Should they be? In what way(s) might they
start to be?
Among Wealthy Detailed in Two Studies,
by Thomas J. Billitteri
Two new studies have categorized and detailed how, why and
how much the wealthy give to charitable causes. The surveys,
which both study people from a variety of different occupations
whose assets totaled at least $5 million.
The 5% Payout
Federal law requires that philanthropic foundations must
distribute at least 5 percent of their investment assets each
year. In addition to grants, the minimum payout includes capital
expenses, salaries and other administrative costs. Does this
level of giving jeopardize the ability of foundations to operate
Within the philanthropic sector, an important debate is raging:
Should the rate of payout be increased to reflect the booming
economy and better meet the growing need for charitable giving,
or are coming generations better served by protecting foundation
resources and ensuring the availability of foundation resources
in an uncertain future?
Favor of Five Percent: There's a Place for Permanent Foundations,
by John E. Craig, Jr.
Afraid of Increasing Payout? - We Say, Give More Than Five,
by Teresa Odendahl and Diane Feeney
More? Give More,
by Rob McKay
Sustainable Payout for Foundations
The Council of Michigan Foundations commissioned an important
piece of research on the 5% payout question that came to
a very different conclusion from those discussed above.
The report is downloadable in PDF format from its Web