Back to the Future: How the Past Century Shaped Today’s Nonprofit World
January 11, 2001 | Read Time: 3 minutes
What 10 events most heavily influenced the development of the nonprofit world during the past century?
While that question could be answered in any number of ways, a group of scholars, nonprofit leaders, and other experts on charities recently drew up its own list of responses under the auspices of the Alford Group, a nonprofit consulting company in Skokie, Ill. Events chosen for the list must have had a lasting impact on the nonprofit world, the work it does, the public’s attitude toward it, and its role in American society.
Here is the list, in chronological order, along with summaries of the group’s rationale for choosing each event:
1909
National Association for the Advancement of Colored People is formed
Almost as soon as tax-exempt groups were created, they became a strong voice in political debate. Organizations such as the NAACP, National Organization for Women, and National Council of La Raza have galvanized Americans and given powerful voices to minorities.
1911
Andrew Carnegie creates the Carnegie Corporation of New York with $125-million
In 1999 dollars, Carnegie’s original gift to the Carnegie Corporation would be worth more than $2-billion. The remarkable wealth of Carnegie, Ford, Rockefeller, and other industrial giants in the early decades of the last century made them leaders of the nonprofit world when they created charitable foundations. This trend is being repeated today as technology millionaires establish legacies and the number of smaller family foundations explodes.
1914
Cleveland Foundation is created
Cleveland was the first city to establish a community foundation, allowing individuals to leave legacies that would be pooled for the good of the city. More than 575 community foundations now exist, holding more than $30-billion in assets; in 1999, they gave away $1.9-billion.
1918
American Red Cross raises more than $400-million in connection with World War I
World War I generated tremendous national unity, which the Red Cross tapped for the benefit of its international work. The Red Cross’s effort was the first major national fund-raising campaign in the United States, from which today’s mass online and direct-mail fund raising is descended.
1933
President Franklin Roosevelt starts the New Deal Government welfare policy, from the New Deal to the War on Poverty to today’s changes in the welfare system, has radically changed the nonprofit world. The New Deal, which provided large-scale government assistance to Depression-ravaged Americans, was the first of the major changes. The interplay between government and private support and the number of people who rely upon private charities swings between extremes with each policy shift.
1944
World War II G.I. Bill becomes law
The G.I. Bill threw open the doors of higher education to more than 2.2 million veterans. Student enrollment in higher education exploded from 1.5 million in 1939 to 13.5 million in 1989, and the number of colleges doubled. The stage was set for today’s highly skilled, highly educated professional work force.
1961
President John F. Kennedy establishes the Peace Corps
President Kennedy energized a generation of Americans to go where they were needed and do what was required. His plea for volunteers became a part of 1960’s counterculture, as baby boomers battled injustice, served the needy, and defended the environment and indigenous people. Today’s Peace Corps, Corporation for National Service (AmeriCorps), Teach for America, and Habitat for Humanity continue the Kennedy-inspired tradition.
1980
Independent Sector is formed
Transformation of the nonprofit world from one of “charities” to an effective, professional part of the American economy was marked by creation of a primary voice in Washington, Independent Sector. Nonprofit groups took shape as more than mere exceptions to the tax code, but rather as a force that complemented business and government and added a sophisticated voice in policy making.
1983
American Express links its donation for the Statue of Liberty restoration to card usage
The first so-called cause-related marketing campaign involved American Express, which gave a percentage of each card transaction to the historic restoration of the Statue of Liberty, donating a total of $1.7-million. This event is widely considered the genesis of today’s move toward marketing-driven, investment-oriented contributions by corporations, and visible corporate social responsibility.
