President Clinton Urges Adoption of Policies to Spur Philanthropy

By GRANT WILLIAMS

President Clinton has hailed a resurgence in charitable giving, citing a new

report from his Council of Economic Advisers that identifies a rise in giving in recent years as a proportion of the nation’s total economic activity. But he urged Americans to do even more.

Mr. Clinton, in one of his recent weekly radio addresses to the nation, pointed to recommendations in the report on steps the federal government can take to further cultivate public generosity.

$2-Million Youth Effort

As an example, the president announced the creation of a $2-million program paid for with private donations that will aim to introduce more young Americans to what Mr. Clinton called “the rewards of charitable giving.”

The president also heralded the release of a report from his Interagency Task Force on Nonprofits and Government that he said serves as “a road map for creating innovative partnerships between nonprofit organizations and federal agencies.”

Mr. Clinton said the reports and the new program follow up on recommendations made at last year’s White House Conference on Philanthropy, which he and the first lady, Hillary Rodham Clinton, held to promote charitable giving.

“Last year, Americans gave a record $190-billion to charitable causes: to feed the hungry, immunize children, build homes, tutor immigrants, restore parks, and send disaster relief to hard-hit people all around the world,” Mr. Clinton said. “Working with America’s extensive network of nonprofit and faith-based organizations, we’re making a difference, but we still have more to do.”

The report from the Council of Economic Advisers — called “Philanthropy in the American Economy” — provides an analysis of philanthropic behavior in the United States, discusses trends in giving over the past several decades, and explains the economic factors that led to the increase in donations.

Among the report’s conclusions:

• Charitable giving has risen as a percentage of gross domestic product in recent years, from 1.7 percent in 1995 to nearly 2.1 percent last year.
• Older Americans — those aged 65 and above — are more likely to make a contribution than younger people, and, when doing so, give a larger amount of money.
• Single women are more likely to give than single men.
• Black Americans are more likely to give than whites.

Mr. Clinton pointed to recommendations in the report aimed at further stimulating giving. One proposal, which the president included in his budget recommendations to Congress earlier this year, would extend the deductibility of donations to people who do not itemize on their income-tax returns.

The report also backed the president’s efforts to stop Congress from eliminating the estate tax. Evidence suggests that eliminating the estate tax would decrease charitable bequests, the report said.

In his radio speech, President Clinton outlined a plan to “do a better job of engaging younger Americans in giving.” He said the White House has developed the Youth Giving Project, which “will train young people to identify charitable needs in their own communities, teach them how to raise and distribute money to address those needs, and build leadership skills along the way.”

The youth effort will build upon existing model programs. A number of foundations and charities have been involved in helping to design the new project, including the Council of Michigan Foundations.

Finding Best Approaches

The White House said that several foundations will provide support for training and management assistance to new programs and for Web sites to link existing programs and provide information on “best practices.” New programs are expected to be created in California, the Mississippi Delta, the Midwest, and the Washington, D.C., metropolitan area.

“Grant makers will choose their own local partners and may work with local community foundations or a variety of local youth service organizations,” the White House said.

The youth effort is an example of the kind of partnerships the president has tried to foster between charities and the federal government.

In the Interagency Task Force on Nonprofits and Government, the Clinton Administration says it has “fundamentally changed” the way government does business by developing innovative partnerships with nonprofit organizations in every federal agency.

The report — “Partnerships for a Stronger Civil Society” — provides many examples of the federal government and nonprofit groups working together. It also makes 10 detailed recommendations that federal agencies should follow to expand and improve ties to charities.

The report identifies six “barriers” to successful collaboration between government and charities. One such barrier, the report said, was that some federal agencies do not do enough to encourage charities to weigh in on policy proposals. The report said that some nonprofit groups would like to see more “informal channels — such as roundtable discussions hosted by senior policy staff” — that could help them “share ideas and provide feedback” with government officials.

The report from the Interagency Task Force on Nonprofits and Government can be found at http://www.whitehouse.gov/Initiatives/Millennium/Philan/html/itfreport.html.

The president’s Council of Economic Advisers report is at http://www.whitehouse.gov/WH/EOP/CEA/html/whitepapers.html.