The United States is unquestionably the most philanthropic nation in the world. Our long-standing tradition of caring for others and sharing our blessings dates back to Native Americans in the New World who were willing to share their harvests and knowledge with new settlers. The early religious leaders also brought a tradition of caring for others and sharing their blessings as they colonized the land, staked out farms, and populated early settlements.

With passage of the Federal Tax Act in 1913, the federal government established an income-tax program through which it collected money and then redistributed it throughout the United States to wherever it was most needed. Today, our government predetermines the types of projects and programs that need public support and then, through its various federal agencies, identifies exactly where the funding should go. The grant-seeking process starts when those agencies issue RFPs to nonprofit and governmental agencies in each of the states.

The federal government encouraged private philanthropy when it passed the Federal Tax Act of 1969, which provides tax incentives to individuals and businesses for charitable giving.

Even before tax incentives were enacted, individual, family, and community philanthropy, which preceded government philanthropy, flourished. Ben Franklin was one of the earliest philanthropists, both with his time and his money. He gave to causes that would provide equal opportunities for community members and volunteered at his local hospital, library, and fire department. Andrew Carnegie was among the first of the turn-of-thecentury industrialists to promote “giving back.”

Subsequently, Carnegie was joined by such notables as John D. Rockefeller and Margaret Olivia Sage, wife of wealthy industrialist Russell Sage, who channeled his bequest to her into programs that strengthened education and encouraged social reform. These early millionaires established formal philanthropic foundations modeled after their successful business practices. The new foundations took the place of and provided more flexibility than the charitable trusts that had preceded them.