The Public Funding Agency Eric Larrabee (1975) 1543 Private Foundations and the 1969 Tax Reform Act Chairman and Staff, Council on Foundations, Inc. (1975) 1557
Introduction 1557 I General Background and Rationale 1557 Brief History 1557 Rationale 1559 II Dimensions of the Foundation Field and Program Trends 1560 Types of Foundations 1560 Assets and Their Distribution 1561 Distribution and Trends by Fields 1562 Matters of Scale and Impact 1563 III The 1969 Tax Reform Act and Its Effects 1564 Summary of Principal Provisions 1564 1974Council on Foundations Survey 1565 The Effects of the Act 1565 The Tax on Investment Income 1565 Administrative Costs and Staffing 1566 Reporting to the Public 1568 The Pay-Out Requirement 1568
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Program Restrictions 1571 Excess Business Holdings 1572 IRS Supervision 1572 Birth and Death Rates 1573 IV Endeavors and Accomplishments 1576 Large Doings of the Past 1577 ETV: A Case History 1578 Regional Examples . . . 1580 Relations to Government 1583 V Critical Issues: Pro and Con 1584 Post-1969 Perspective 1584 Critics on All Sides 1585 Accountability 1585
Accessibility 1586
Donor Influence 1586"Whose Money and To What Effect?" 1588 Reaffirmation . 1590 VI Recommendations 1591 To Foundations = . . . . 1591
"Not Our Money But Charity's" 1592 Periodic Review of Objectives and Activities 1592 Extending the Perceptions of Boards and Staffs . 1592 Informing the Public 1592 Responsibilities to Applicants and Grant Recipients 1592 Assessing the Responsibilities and Capabilities of
Both Trustees and Staff 1593 Increasing Communications and Cooperation 1593 Making the Charitable Dollar Make a Difference 1593 Recommendations Relative to the 1969 Act and Other Issues . . . . 1593 On the 4 Percent Tax 1594 On the Level of Required Pay-Out . . . . 1595 On Special Limitations Affecting Gifts to Foundations . . . 1595 On Certain Divestiture Requirements 1596 On Program Restrictions 1597 On the Issue of Limited Life 1597 On Supervision 1598 Appendix A: Growth and Dimensions of the Foundation Field 1599 Appendix B: Council on Foundations Survey of the Effects of 1969
Tax Reform Act Among Private Foundations 1613 Appendix C: Reasonable Investment Expectations and the Payout
of Private Foundations J. Peter Williamson 1648 Footnotes 1653
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Pay-Out Requirements for Foundations Eugene Steuerle (1976) 1663 Introduction 1663
I Historical Review 1663 II Equity and Efficiency of Current Distributional Requirements . . . 1666 Horizontal Inequity in Distributional Requirements 1666 Deficiencies of the Current Formula 1666 Instability of Distributions 1667 III Recommendations for Revision in Requirements for Distribution. . 1668 IV A Question of Perpetuity 1671 Growth of Individual Foundations 1671 A Model of Foundation - Sector Growth 1672 V The Effect of Distributional Requirements for Foundations
Upon the Charitable Sector 1676 VI Conclusion 1677 Footnotes 1677 Foundations and the Federal Government: A Look at Spending
Patterns Michael S. Koleda, Daniel Bourque, and Randall Smith (1975). 1679 Introduction 1679
I Health 1680 II Education 1681 III Science 1683 IV Social Welfare Services 1684 V Arts and Humanities 1685 VI Public Affairs 1686 Appendix 1687 Community Foundations Norman A. Sugarman (1975) . 1689
I Background 1689 A Brief History of the Community Foundation Movement 1689 Some Basic Data on Community Foundations 1691 Characteristics of a Community Foundation 1692 II The Role of Community Foundations 1694 Operations of Community Foundations in General 1694
Structure for Attraction of Gifts or Bequests from
the Public 1694 Efforts to Seek Public Support 1694 Types of Gifts or Bequests Encouraged 1695 Investments and Distributions 1695 The Role of Community Foundations in Community Public
Service 1697 Community Foundation Distributions in General 1697 Uses of Community Foundation Grants 1697 Community Foundation Services in Utilizing Other
Community Resources 1699
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III Community Foundations and the Tax Laws 1700 Pre-1970 Status of Community Foundations Under the Tax Law . . 1700 Classification of Foundations Under the 1969 Act;
Application of Rules to Community Foundations 1701 Differences Between Community Foundations and Private
Grant-Making Foundations . . . ' 1702 The Importance of Public Charity Classification Under the
1969 Act . . . • 1704 IV Evaluation of Community Foundations: Current Issues and
Future Role 1706 Current Issues Involving Community Foundations 1706 The Future Role of Community Foundations in Private
Philanthropy . . . . 1709 The Community Foundation as a Prime Object of
Philanthropic Giving 1710 Development of Associations of Foundations 1710 Conversion of Private Foundations into Supporting
Foundations of Community Foundations 1710 Termination of Private Foundations into Community
Foundations . . 1711 V Summary and Recommendations 1711 Appendix A: Geographical Listing of Community Foundations 1713 Appendix B: Financial and Other Data on Community Foundations . . 1719 Footnotes 1721 The Charitable Foundation: Its Governance Lawrence M. Stone (1975) 1723 Introduction 1723 I Long-Range Strategy 1724 II Some Specific Recommendations 1726 Areas of Appropriate Government Regulation 1726 Areas in Which to Avoid Government Regulation 1726 Areas of Experimentation With Different Regulatory Approaches. . 1726 Limits on Control But Not on Size 1727 Equal Tax Treatment for Foundations and Other Charitable
Institutions . . 1727 III Areas of Potential Government Regulation: The Problem
of "Privateness" 1727 Solicitation of Funds 1727 Selection and Composition of the Governing Board—Donor
Control . . . . 1727 IV Private or Semigovernmental Regulation of Board
Composition and Conduct 1730 V Community Foundations: An Inappropriate Model 1732
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VI Limitations on Minimum or Maximum Size 1733 VII Conclusions 1733 Footnotes . 1734
Partm Corporations
Corporate Philanthropic Public Service Activities James F. Harris and Anne Klepper (1975) 1741
Foreword 1741 I Introduction 1741 Corporate Roles and Philanthropy 1742 Corporate Contributions, 1936-1972 1743 Stockholder Influence 1743 Cost to Stockholders . . . 1743 Survey Methodology . . . 1745 II Leadership . . . . 1746 Involvement of Top Corporate Leaders 1746 The Corporation's Social Role 1747 Most Important Philanthropies 1747 Philanthropic Activities 1749 Some Leadership Examples . 1749 The "Leading Edge" 1751 III The Reasons for Giving 1751 Personal Viewpoints 17,53 The Pros . . . 1754 The Cons - and the Maybes 1755 IV Factors Determining Budget Levels . . 1756 Industry Comparisons . . . ' 1756 Recipient of the Corporate Dollar 1759 V Public Service Activities . . . 1759 Costs 1759 Administration 1762 Company Facilities . . . 1762 Miscellaneous Cost Data 1762 Areas of Corporate Involvement . . 1763 United Way . 1763 Blood Banking . . . 1764 Coordinated Business Approaches: Economic
Development Council of New York City 1764 National Alliance of Businessmen 1765 Ten Areas That Receive Corporate Support 1765 Communications 1768
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VI Company Foundations, Taxes, and the Tax Reform Act of 1969 . . 1768 Effects on Existence of Company Foundations 1768 Effects of Specific Provisions 1769 Potential Effects of Alternative Tax Changes 1770 Other Factors Affecting Contributions 1773 Charitable Deductions and Business Expenses 1773 Charitable Contribution or Business Expense? 1775 VII Management and Staffing. . 1776 Contributions and Foundation Staff 1777 Accountability and Evaluation 1778 VIII Recommendations of the Business Advisory Committee 1778 Leadership 1779 Management and Staffing 1780 Accountability and Evaluation 1780 Communications and Public Disclosure 1781 Diversity 1781 Corporate Foundations 1781 Taxes 1782 Appendix 1784 Related Conference Board Publications 1787 Footnotes 1788 Corporate Giving: Rationale, Issues, and Opportunities C. Lowell Harriss (1975) 1789 Introduction 1789 Scope of Study 1789 Corporations as the Subject of this Report 1790 Rules and Attitudes Affecting Contributions Are
Subject to Change 1790 Variety of Business Aids to Nonprofit Organizations 1790 Historical Background: A Brief Sketch 1791 Social Responsibility . . . 1792 I Policy Considerations of Fundamental Importance . . 1792
" . . . or to the People": The Bill of Rights and Voluntarism 1793 Maintaining and Enhancing Diversity, Flexibility, and
Creativity in Service Delivery Systems: Corporate
Personnel and Funds 1793 Preserving the Capacity of the Business World to Perform
its Essential Functions 1795 Business as Existing at the "Toleration" of Society:
A Misplaced Argument. 1796 II Arguments For and Against Corporate Contributions 1797 Arguments Against — or for Narrow and Limited — Corporate Giving 1797
Profits Inadequate 1797
XXXIX Page
Avoiding Confusion of the "Business" with Other
Aspects of Social Activity 1798 Corporate Philanthropy as an Exercise of Undue Power 1798 Unreasonable Expectations 1799 Business Sticking to Business Will Provide Increasing
Ability for Individuals to Finance Philanthropy 1799 Specialization . . . ' 1799 Stockholder Decisions Preferable . 1800 Competition Limits Ability to Contribute 1800 Doubt About Worth of Results 1800 Company Could Not Give Enough to Make Any Difference . . 1800 Peers and Others Not Giving More 1801 Stockholder Objections 1801 Arguments in Favor of (Larger) Corporate Giving 1801
Carrying on What Has Brought Good Results in the
Past: Respecting an Obligation , 1802 Voluntarism Aided by Corporate Giving 1802 Improving the "Climate" for Business 1803 Improving Community Conditions Can Help Employee
Productivity . . . . 1803 Colleges and Universities Provide Training and
Conduct Research 1803 Personnel from Businesses Can Supply Useful Skills . 1804 Tax Interests of Shareholders Vary 1804 Building Public Respect 1804 Continuation of Contributions Practices: Commitment 1805 Diversification as a Reason for Shareholders to
Support Corporate Contributions . . . 1805
Economy in Raising Funds 1805
Externalities . 1806
III Tax Considerations 1808
High fax Rates 1808
Tax Expenditures 1808
Difference Between Personal and Corporate Contributions . . . 1809
Self-interest Element of Business Contributions 1810
Cost of Deductible Gifts . 1811
IV The Record: Statistics and Commentary . . . 1812
Historical Record ; . . . 1812
1970 Figures . . . 1813
Other Evidence ; . , ; . . . . 1815
Judging Results . . . 1815
V Increasing Corporate Contributions 1816
How Much Might Be Expected? 1816
Profitability of Business 1818
Possibilities of Government Action 1818
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Raising the 5 Percent Limit 1818 Deduction of More Than the Amount of the Contribution . . . 1819 Increasing the Value of Deduction by Corporations
Not Subject to 48 Percent Rate 1819 Tax Credit . . 1819 Establishing a Contributions Floor 1820 Adjustments for Industries and Companies That Differ
from the Average 1821 Valuation of Gifts from Inventory 1821 Actions in the Private Sector 1821 Footnotes 1822 Corporate Charitable Contributions and Corporate Social Responsibility Milton Moskowitz (1975) 1827
Corporate Giving Measures Thomas Vasquez (1975) 1839 I Development of Corporate Giving, 1935-1970 1839 II Cross-Sectional View of Corporate Giving, 1970 1843 Footnotes 1852 Corporate Charitable Contributions R. Palmer Baker, Jr., and / . Edward Shillingburg (1975) . . 1853
Introduction 1853 I Corporation Law and Tax Framework . . . 1854 Historical Background 1854 Present Corporate Law Situation . . . 1854 Business Corporations . . . 1854 Regulated Industries 1855 Present Tax Law 1856 II The Sources and Recipients of Corporate Contributions . . . 1857 Rate of Giving 1857 Recipients 1858 III Company Foundations 1859 Use of Company Foundations 1859 Effect of Recent Legislation 1859 IV Other Corporate Support 1864 Gifts in Kind . . . 1864 Personal Services 1865 V Corporate Giving: Part of Corporate Social Responsibility . . . 1865 VI A Rationale for Corporate Philanthropy 1866 VII Recommendations . 1870 Changing Concepts of Charity 1870 Corporate Law 1870
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Regulated Utilities 1870 Tax Considerations 1870 Appendix A: Ohio Citizens' Council for Health and Welfare v.
The Public Utilities Commission of Ohio 1871 Appendix B: New York State Bar Association, Tax Section,
Proposals for Improvement of Rules for
Allocation of Deductions Between Foreign and U.S.
Source Income , 1874 Appendix C: John H. Watson, III Biennial Survey of Company
Contributions, The Conference Board (1973) 1875 Footnotes . . . ; . . . 1903
VOLUME IV