Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
As America approaches its 250th anniversary, we’re reflecting on the principles that have shaped our nation from the beginning. Among the most important is the idea that communities are strongest when citizens are free to come together voluntarily to solve problems. That tradition remains alive in Indiana today.
A new national study from Philanthropy Roundtable, the Free to Give Index, ranks Indiana in the top five among all 50 states for fostering a policy environment that supports charitable giving, nonprofit innovation and donor confidence.
Tax competitiveness, regulatory climate and donor protections are among the 33 measures the index uses to determine whether states make it easier or harder for citizens and charitable organizations to address community needs.
As a lifelong Hoosier, I find Indiana’s top-five finish unsurprising. It reinforces my pride in our state’s standout culture of community and collaboration.
Indiana has long been a national leader in philanthropy and civil society. We are home to the nation’s first bachelor’s degree program in philanthropic studies and the largest number of locally controlled community foundations in America.
Across our state, charitable donors and business leaders invest in everything from workforce development and education to faith-based organizations, mental health solutions and neighborhood revitalization.
Our philanthropic strength is not an accident. It is the product of citizens who care deeply about their communities and public policies that give them the freedom to act.
The Free to Give Index found that the five highest-ranked states average nearly twice as many charities per billion dollars of GDP as the five lowest-ranked states.
States that reduce unnecessary barriers to charitable activity, protect donor rights and maintain a healthy economic climate tend to see more people pursuing private solutions and a greater level of nonprofit formation.
Indiana performs particularly well because it combines a strong overall policy environment with relatively light regulatory burdens on charitable organizations and meaningful protections for donors. These policies may not generate headlines, but they help create the conditions that allow Hoosiers to flourish.
The details behind Indiana’s ranking are just as instructive as its overall score. Indiana earned top-10 rankings in each of the index’s three pillars: policy environment, nonprofit freedom and donor confidence. Unlike many states, Indiana does not require charities to register before operating, imposes no annual charitable reporting requirements or filing fees, and generally avoids layering multiple regulators over nonprofit organizations. It also protects donor privacy and requires legislative approval before imposing significant new charitable regulations. These may sound like technical policy choices, but together they send a powerful message: Indiana trusts its citizens and charitable organizations to do good without unnecessary government interference. This matters because philanthropy is one of the primary ways Americans exercise self-government. Every day, charitable organizations identify needs, mobilize resources and deliver solutions that are tailored to local communities. They provide opportunities for citizens to take responsibility for challenges close to home rather than waiting for distant institutions to act. Long before government programs became commonplace, Americans formed churches, charities, civic groups, mutual aid societies, and educational institutions to meet local needs. That tradition remains one of our nation’s greatest strengths.
The lesson from Indiana’s success is that public policy works best when it empowers, rather than crowds out, private initiative.
Our state’s top-five ranking should be viewed not as a finish line but as a challenge to continue leading. Policymakers should next add protections ensuring the right of donors to choose how their charitable dollars are used, both during their lifetimes and as part of their enduring legacies. Without such statutory assurance, it is possible for generous Hoosiers to provide funds for charitable activities that are important to them and later have those funds used for something completely different — in some cases, counter to their personal values or beliefs. Protecting those donations is an opportunity to strengthen Indiana’s position as a destination for charitable innovation and civic entrepreneurship.
As we celebrate America’s 250th anniversary, we’re reminded that our constitutional system begins with the people, not the government. Free citizens built America’s civic and charitable institutions, while government was entrusted with limited powers. The Free to Give Index shows Indiana continues to honor that tradition.
The task now is to ensure that future generations inherit an even stronger culture of giving than the one we enjoy today.•
__________
Cummings is senior vice president of the Philanthropy Roundtable.
Please enable JavaScript to view this content.
Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.