JP/xx/US2
What motivates philanthropists?
Why are Americans known for their propensity for joining volunteer groups or becoming activists? Is it politics or altruism that motivates one to crusade for the cause of humanity?
Some observers believe that an innate sense of altruism drives certain groups to help out other human beings. Certainly there is a greater need for charities and givers in the United States where welfare systems are much slimmer than in those of other developed Western nations.
The most cynical among us in developing nations believe that what motivates some philanthropist groups is a culturally narcissistic urge, which can be seen from the arrogant "we-know- best" attitudes from some of those in Western non-governmental organizations. Then of course, there are the bogus Indonesian NGOs set up for nothing apart from stealing foreign aid.
But of course neither of these groups can be truly called altruists -- or can they?
The University of Chicago's economist Steven D. Levitt said in his 2005 bestseller Freakonomics: The Hidden Side of Everything that he co-authored with The New York Times Magazine's journalist Stephen J. Dubner, that human beings are motivated by both moral and material incentives.
Philanthropy (from the Greek word philanthropia or Love of Mankind) is essentially a Western concept, Birger Albert Pearson, the professor emeritus of religious studies at the University of California at Santa Barbara, said in a 1997 essay, Ancient Roots of Western Philosophy: Pagan, Jewish and Christian.
Steel magnate Andrew Carnegie is considered as the proponent of modern American philanthropist. When he died in 1919, Carnegie had given away $350,695,653 or almost 90 percent of his wealth for many projects, including public libraries and a university. He bequeathed another $30 million to foundations, charities and pensioners.
The tradition of giving is preserved by other wealthy industrialists, including oil tycoon John D. Rockefeller and banker Andrew W. Mellon and, in modern times, Microsoft boss Bill Gates.
In order to encourage individuals and companies to give, the U.S structures federal tax law which allows one to deduct the value of charitable contributions if one itemizes deductions. In this scheme, every taxpayer who itemizes their tax deductions, the donation of $1 to a nonprofit organization reduces taxes between 28 and 40 cents a dollar, but that also depends on the taxpayer's tax position.
The Economist reported in its July 29, 2004, edition on a striking trend in the U.S., where wealthy people were contributing more to charity while leaving less for their offspring. Quoting a study by Paul Schervish and John Havens from Boston College, The Economist wrote that 0.22 percent of households that earn $1 million or more contribute about 13 percent of their wealth. (Ivy Susanti)