We anticipate that America s nonprofit sector will emerge as perhaps the most dynamic arena for creative problem solving in the 21st Century. Estimates, for example, of the transfer of wealth from today s retired generation to their children range in the tens of trillions of dollars. We must act affirmatively to capture this wealth for purposes of generating social renewal. Much of the good that religious and charitable organizations have done and always will do rightly takes place independent of government direction and government funding. America is blessed with social entrepreneurs who see a problem and set about with energy, ingenuity, and organizational savvy to provide solutions.
Foundations provide private support for the public good.
This is civil society at work. Yet there is more that the Federal Government can and should do to support private groups. Tax law promotes civil society by encouraging individual and corporate donations to a wide range of charitable and religious organizations through tax deductions. This initiative will spark billions of dollars in new donations to charitable organizations. Under current law, withdrawals from Individual Retirement Accounts are subject to income tax.