It sometimes has been called a “generosity crisis.”
Based on philanthropic research conducted by Indiana University’s Lilly Family School of Philanthropy, fewer U.S. citizens overall are donating to nonprofits than a decade ago. Taking inflation into account, financial support for charitable causes effectively has plateaued—it basically has been keeping pace with inflation, but only as a result of increasing reliance upon the generosity of the ultra-wealthy.
Should we be concerned? Does it matter if there are fewer kindhearted, socially-conscious citizens helping shoulder support for organizations that depend on voluntary contributions?
There is a strong case for saying “yes, we need more of those people, not less.” It has been commonly suggested that nonprofit organizations are the beating heart of a thriving community, playing a critical role in elevating the quality of life for all of us here in the Northwest Louisiana region, and for that matter, communities across the country.
Why though? What makes the nonprofit element so vital that it would be compared to a beating heart? Just rationally and at the surface, it is fair to say that the metaphor fits because support for volunteer-oriented good works is a reflection on the very spirit of the community. But pause for a minute and participate in a deeper dive, considering some of the additional context that informs how we got here.
Brief Overview of How the Nonprofit Sector Has Evolved
Historically, the business (“private”) sector and the government (“public”) sector have worked and continue to work in tandem to advance the quality of life for individuals and their families. Some of our needs are met most satisfactorily by any one of us paying for a good or service in exchange for having the need met. Consider what you had for lunch. Then, other needs have proved to be met best by collecting and using tax money. Consider the road you were able to access in order to go to purchase what you had for lunch.
In the last century or so, however, a third sector—the nonprofit, or charitable, sector—has emerged to significantly help quality of life accelerate here in the United States and globally.
The seeds of the nonprofit sector as we know it today germinated in the early 1800s. A French government official named Alexis de Tocqueville visited the United States on a fact-finding mission to discover ideas that possibly could work in his native country. Tocqueville would later write enthusiastically about how commonly he had found citizens of this new nation taking the initiative to form associations of all types in the pursuit of elevating well-being. A few decades following the Civil War, Andrew Carnegie’s widely-read Gospel of Wealth is credited with persuasively arguing for Americans to perceive themselves as owing a debt to society, and to voluntarily donate funds to organizations seeking to meet needs of their fellow citizens. Then, as the 20th century dawned, that sense began to flourish. So many of today’s most widely recognized nonprofit organizations trace their origins to the early 1900s.
Today, about 1.35 million nonprofits operate in the U.S. according to the IRS’ most recent count (2023). Notably, that count does not include churches and other houses of worship that our tax code excludes from government oversight. So, that to say, we as Americans have a myriad of good causes pursuing some type of pro-social mission seeking to enhance quality of life.
Nonprofits Fill Voids Critical to Individuals’ and Families’ Well-Being
Contemplate for a moment the variety of those good causes we see. Among the most critical ones are those dedicated to poverty alleviation. They provide essential goods and services through food and nutrition programs, clothing assistance, and affordable housing, ensuring that the most vulnerable members of society have access to basic necessities. These assets in combination with wraparound childcare and training/employment initiatives not only alleviate immediate suffering, but also empower individuals to break free from the cycle of poverty, leading to increased self-sufficiency and a greater sense of well-being.
Health-oriented nonprofits, such as those concerned with cancer and other conditions, exist both to advance prevention initiatives, as well as to create and maintain resources for those dealing with a particular illness or injury. Somewhat in that same vein, there are other charitable causes that give focus to addressing urgent humanitarian crises, such as in times of natural disasters. These organizations provide life-saving aid, such as emergency medical care, ample supply of blood for surgical procedures, clean water, and shelter. Some also play a crucial role in long-term recovery efforts, helping communities rebuild and recover from trauma.
Education is another key area where nonprofits make a profound impact. From youth development programs to instructional museums to college scholarships, these organizations cultivate self-actualization and a path to a productive career. By investing in education, nonprofits not only equip individuals with the skills and knowledge they need to succeed but also contribute to a more informed and engaged citizenry.
Moreover, nonprofits enrich our lives by promoting cultural and artistic expression. Through arts councils, festival events and more, they provide opportunities for individuals to connect with their creativity, explore diverse cultures, and experience the beauty of the arts. These experiences not only enhance our personal lives but also contribute to the vibrancy and vitality of our communities.
And there is so much more than there is space in this column to highlight them—e.g., nonprofits that play a vital role in environmental protection and sustainability, others that play a vital role in lifting up those with disabilities, and still others that play a vital role in animal welfare.
Charge to Generous “Joes and Janes”
With all of this in mind, and adding into the equation that the U.S. population continues to grow, it is so very important to reverse this trend of generosity shrinkage. Rather than seeing continued erosion in the number of actively generous individuals in the population, we need to see those numbers begin to trend upward. To the degree us “common Joes and Janes” are successful, we will make it so much more likely that our children and grandchildren progress toward increasingly stronger quality of life. The charge is this: We should and we must support any initiatives that work toward that outcome.
Greg Thompson | Charity Review Director
BBB Serving Northeast & Central Louisiana & The Ark-La-Tex