Philanthropy in the 20th Century: Key Events

1907
Margaret Olivia Sage creates the Russell Sage Foundation to make grants to improve social and living conditions in the United States.

1907
The first Christmas Seals are sold by Emily Bissell in the Wilmington, Del., post office to raise money to fight tuberculosis.

The effort raises more than $3,000.

1909
The National Association for the Advancement of Colored People is formed. Within four years, the Boy Scouts of America, Girl Scouts, American Cancer Society, and Goodwill Industries also are created.

1911
Andrew Carnegie, whose 1889 essay “Wealth” articulated the philanthropic duties of the wealthy, gives $125-million to create the Carnegie Corporation of New York.

1913
John D. Rockefeller creates the Rockefeller Foundation with $35-million donation.

1913
Congress imposes the personal income tax.

1914
Frederick Goff, president of the Cleveland Trust Company, forms the nation’s first community foundation in Cleveland.

1917
For the first time, Americans are allowed to take tax deductions for their charitable gifts.

1918
Americans give more than $400-million in gifts and membership dues to the Red Cross in less than two years in connection with World War I.

1918
The first charity watchdog group is created in response to charitable fund raising related to World War I.

1918
Executives of 12 fund-raising federations form the American Association for Community Organizations, a predecessor to United Way of America.

1919
Charles Ward and Lyman Pierce form what is widely believed to be the first professional fund-raising consulting firm, working in behalf of the YMCA. Similar fund-raising firms proliferate during the 1920s.

1927
The American Council on Gift Annuities is formed.

1929
The Great Depression begins. For a decade it strains the resources of charities. It also leads to New Deal programs that shift responsibility for social welfare from the non-profit world to government.

1934
A new federal law says that organizations cannot be exempted from taxes if they devote “a substantial part” of their activities to propaganda and lobbying.

1935
Congress allows corporations to claim a tax deduction of up to 5 per cent of taxable income for charitable donations.

1939
The start of World War II creates intense demand for non-profit programs that offer international war relief.

1942
The U.S. Treasury Department creates the Form 990 informational tax return, on which groups are required to report on their finances.

1945
The United Nations is created, fostering international-relief programs through non-governmental organizations.

1949
The predecessor of the Council on Foundations is created “to promote responsible and effective philanthropy” among grant-making foundations and corporations.

1949
President Harry Truman, in his inaugural address, lays out a plan to attack world poverty that involves a coalition of government agencies and non-profit organizations.

1950
Congress makes parts of the Form 990 informational tax return available to the public and requires non-profit groups to pay tax on income from businesses that are unrelated to their charitable purposes.

1954
The GE Fund, the corporate-giving arm of General Electric, becomes the first entity to match employee and retiree contributions to charity.

1960
The predecessor of the National Society of Fund Raising Executives is formed to encourage philanthropic giving and ethical charity solicitations.

1961
President John F. Kennedy establishes the Peace Corps, creating opportunities for American volunteerism worldwide.

1961
The Combined Federal Campaign, which raises money from government employees, is created.

1961
U.S. Rep. Wright Patman, Democrat of Texas, holds hearings on alleged financial abuses by foundations.

1964
President Lyndon Johnson begins his War on Poverty, creating numerous programs that provide support to non-profit groups that provide health care and social services.

1964
The Economic Opportunity Act creates the Volunteers in Service to America (VISTA) program, which encourages Americans to give their time to antipoverty programs.

1969
Brotherhood Crusade Black United Fund, the first in a series of fund-raising federations created as alternatives to United Ways, is formed.

1969
Congress requires foundations to limit their involvement in political action and to devote a minimum percentage of their assets each year to charitable purposes.

1973
John D. Rockefeller III creates the Commission on Private Philanthropy and Public Needs and asks John Filer, an insurance executive, to run the organization.

1974
To coordinate enforcement of charity laws across state lines, state attorneys general form a new coalition.

1976
The National Committee for Responsive Philanthropy is created to represent the interests of groups that many people felt were being neglected by established philanthropy.

1976
Congress loosens lobbying restrictions that apply to charities.

1979
A group of Christian leaders creates the Evangelical Council for Financial Accountability to promote ethical behavior among Christian organizations.

1980
The National Council on Philanthropy and the Coalition of National Voluntary Organizations merge to create Independent Sector, which represents grant makers and charities.

1980
The Carter Administration opens the Combined Federal Campaign to local charities and to a handful of national groups in addition to United Way and other traditional participants.

1980
The U.S. Supreme Court strikes down an Illinois law requiring charities to spend a minimum percentage of the donations they receive on programs.

1981
The Statute of Liberty-Ellis Island Foundation begins using corporate sponsorships to raise money to renovate the Statute of Liberty, signaling the advent of “cause-related marketing.”

1981
President Ronald Reagan takes office. His Administration makes major cuts in federal social-service programs, including many that funneled money to non-profit organizations.

1981
Congress raises the amount of charitable contributions that corporations can write off annually to 10 per cent of taxable income, up from 5 per cent.

1983
The U.S. Supreme Court rules that non-profit organizations are not entitled to tax-exempt status if they operate “contrary to established public policy” and are “at odds with the common community conscience.”

1984
New federal rules allow those who contribute stock to private foundations to deduct the full market value instead of the initial cost of the shares. The temporary provision is made permanent in 1998.

1984
The U.S. Supreme Court says that states cannot limit the percentage of charitable donations that non-profit groups can spend on fund raising.

1985
Federal legislation ends efforts by the Reagan Administration to bar advocacy organizations from participating in government on-the-job charity campaigns.

1986
Congress overhauls the tax code and takes away charitable deductions for people who don’t itemize deductions on their returns.

1987
New IRS rules require non-profit groups to show their Form 990 informational tax returns to anyone who makes a request in person.

1989
Televangelist Jim Bakker is convicted of defrauding followers of his Praise The Lord (PTL) ministry of $158-million. He serves five years in prison.

1992
William Aramony resigns as president of United Way of America after being accused of defrauding the organization of hundreds thousands of dollars. He later is convicted of criminal wrongdoing.

1995
The Foundation for New Era Philanthropy, which defrauded charitable institutions and major donors of more than $350-million, collapses.

1996
Congress passes a law that enables the IRS to penalize charity officials who receive or approve inappropriately high compensation. The law also requires non-profit organizations to make their Form 990 informational tax returns easily accessible to the public.

1996
Congress overhauls the welfare system and encourages governments to give money to private groups, including religious organizations, that provide services to people moving off of welfare.

1997
President Clinton and three former Presidents hold a meeting of business, government, and non-profit leaders to encourage Americans to volunteer to help needy children and get them to pledge to take specific actions.

1999
Microsoft executive Bill Gates and his wife, Melinda, contribute three gifts totaling $16-billion to create the nation’s largest philanthropic organization.

1999
President and Mrs. Clinton hold the first-ever White House conference on philanthropy.