America the charitable: a few surprises

From the Christian Science Monitor: America the charitable: a few surprises

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.

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It's not just that charity helps those on the receiving end, says Brooks, an economist at Syracuse University in New York. It also strengthens the cohesion of society at large. Moreover, it appears to make the givers themselves more successful, possibly because the activity transforms them somewhat into better or happier people. Whatever the reasons, he finds that higher income tends to push up charity – and that greater charity tends to push up income.

Another provocative conclusion is that conservatives are better givers than liberals – a theme that is likely to draw close scrutiny. This pattern is less about politics, he says, than about charity-linked lifestyles that are most common to people who call themselves conservatives: religious commitment, marriage and children, and entrepreneurship.

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Her story echoes some of the common forces that motivate people to give time or money to charity: First, she identifies with challenges facing home-school moms. In her case, the feeling is amplified because she herself is one of those moms. Second, she wants to make a difference. Third, she draws satisfaction from the effort to help.

These forces are among the core motivations that foster actions of generosity beyond the sphere of one's family circle, says Paul Schervish, who heads the Boston College Center on Wealth and Philanthropy. "There would still be a need for philanthropy, even if our economic needs were all taken care of."