America's thousand points of light

Donations hit a record last year, a sign of America's strength in meeting human needs.

from the June 26, 2007 edition

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This Fourth of July, Americans might want to celebrate something more than the nation's contributions to freedom and democracy: The US remains a beacon of private giving, with a record set last year in donations to charitable causes.

As usual, three-quarters of the money came from individuals, the rest from institutions. In a ranking with other countries, the US remains first in philanthropy as a percent of its economy – 1.7 percent – far ahead of runner-up Britain with 0.73 percent, or France's 0.14 percent.

Americans gave away nearly $300 billion in 2006, surpassing even the unusually high giving of 2005 that was triggered by such disasters as the Gulf hurricanes and the Asian tsunami. Donations in the US rose an inflation-adjusted 1 percent, according to a report released yesterday by the Giving USA Foundation. If disaster relief is excluded, the increase was 3.2 percent.

Such generosity reflects two key parts of American values: hope for the future of society and a hope that each individual can rise out of trouble and woe to make a better life. Much of the rebuilding of New Orleans, for instance, has been led by individuals, aid groups, and foundations, while government is still getting its act together.

Even though last year's increase was boosted in part by a $1.9 billion donation from multibillionaire Warren Buffet, Americans across all income levels still give. The working poor give as much as the rich as a percent of income. For households earning below $100,000, about two-thirds give to charities.

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