SHATTERING MYTHS ON THE ECONOMIC IMPACT OF PHILANTHROPY

Like millions of Americans, many legislators still view our country’s commercial engine through a bifurcated lens. They believe that for-profit businesses drive the economy and create wealth, while not-for-profit organizations simply make grants, collect donations, and provide services. However, in the last 20 years, as philanthropy has grown exponentially in America, we now have evidence that our country’s charities and foundations are actually driving the economies of many cities.

In a recent study for the Philanthropic Collaborative, noted economist Robert Shapiro produced a first-of-its-kind analysis of the economic impact of philanthropy in America. This study shatters the myth that tax deductions for foundations and charities represent lost revenue for cities. In fact, it conservatively suggests that these groups create a nine-to-one return on investments, well surpassing that of many blue-chip corporations. Read More.