Compiled by the Ellis L. Phillips Foundation of Boston, the Generosity Index is a good measure of the resources available for giving among people in a state and the amount they give to charity. In 1997, Massachusetts ranked third in the nation in average AGI but 48 out of 50 when it came to donations made to charitable causes. The details don't get any better. Even when more rigorous methods are used to measure giving, Massachusetts still ranks at the bottom. There are several explanations for the state's poor ranking.
Some observers speculate that activist governments crowd out private initiative.
People may feel less compelled to contribute when state government has assumed the primary role of provider of educational, human service, environmental and cultural programs. The Commonwealth could provide incentives through the tax code. The Massachusetts Senate has offered its own tax deduction as part of its FY 2001 budget. Currently, the federal government offers a tax deduction for individual income tax filers who make charitable donations and who itemize their taxes. Thirteen of the states that levy income taxes also provide for a state charitable deduction.