Last year was among the worst on record for charitable giving. The culprit is Uncle Sam.

[DearAbby]

The Capitol’s Charity Case

Last year was among the worst on record for charitable giving. But even with a rebound forecast for 2010, the world of good works will remain unnaturally depressed, according to a new study, and not because of the economy. The culprit is Uncle Sam.

Each year, the government gives thousands of grants to public-spirited nonprofits, many of which depend on these funds for a huge chunk of their budgets. But this “crowds out” private donors, according to a forthcoming paper in the Journal of Public Economics. For each $10,000 in annual government grant money, the study shows, nonprofits cut fundraising by an estimated $1,370, and private charitable donations fell by about $7,271.

This dynamic shows how much charities dislike shaking cups for cash. It also suggests that another golden age of philanthropy is a simple fix away. University of California, San Diego, economist James Andreoni, who coauthored the study, notes that if the government made continued fundraising a condition of every grant, the charitable pot might be supersized.

http://www.newsweek.com/2010/11/18/the-capitol-s-charity-case.html

[RaleighNCDUer]

1. Last year we had a devastated economy and a real unemployment rate

of close to 20% - think THAT might have had something to do with the dearth of charitable giving?

[leftstreet]

2. Why do we need charities? n/t

[BlueIris]

3. I read that last year was the worst year for giving since 1953.

1953. I sincerely doubt that there's only one explanation for the decline (other than the trashed economy, of course.)

[ThoughtCriminal]

4. Need Fatigue

I get buried with solicitations and frankly, I don't think I'm the only one who is a bit exhausted and tapped out. At times it does seem like my name gets sold, resold and shared to the point where for every dollar I contribute, related charities end up spending $2 mailing me more requests.

[hfojvt]

5. I think it is disgusting

I mean, I donated to an organization to fight hunger, or to win an election. I don't expect them to use my money to send me letters, or worse yet, hire telemarketers to call me, asking for more money.

[Hannah Bell]

6. i seem to recall some previous year during the boom was the *best* year.

so i doubt it has anything to do with government crowding out private donors.

i'd bet this is some salvo in the war to stop the government from giving out money for things that actually help people.