Fund Raising

The purpose of fund raising is to encourage voluntary monetary contributions to such entities as educational and religious institutions and public interest and social welfare organizations. Many organizations seek their funds from foundations and endowments and business coorporations rather than individuals. Although organize giving takes place throughout the world, it assumes a special importance in the United States, where government plays a relatively small role in supporting services. Subject to restrictions introduced in 1986, charitable donations may be deducted from federal income tax.

In 1988, U.S. residents donated $104.3 bilion to charitable causes, 17% of which was given by foundations, bequests, and corporations. About 46% of the total was donated to religious organizations. Education accounted for about 9% of total donations in 1988. The health care field also received about 9%, with giving in this area dominated by foundations rather than private individuals. Social welfare groups received almost 10% of the total, the largest single portion going to local agencies through the United Way.

About 7% of all donations went to arts and humanities groups. Public radio and televisions stations periodically broadcast their fund raising campaigns and often receive matching grants from foundations. Civic and public groups, such as the Sierra Club or the National Association for the Advancement of colored people (NAACP), received about 3% of the total.

Many large organizations, such as the American Center Society, conduct nationwide campaigns and often employ professional fund raising staffs. Most local fund raising, however, is organized by nonprofessionals in behalf of such vital local services as the fire and police departments.