But only to smart causes. The power couple is interested exclusively in “impact giving.”
They, for example, plan to fund a comprehensive experiment on what causes obesity. There is much more to know about how the body processes food. A study like this could lead to effective advice not just on obesity but also on other dietary issues; it could improve well-being for virtually everybody.
Along with obesity, they also want to dig into criminal justice and pension reform.
The Arnolds want to give their money to projects that will contribute to the wider depository of human knowledge. Causes have to show a scientific approach to prove that the projects have a high probability of working.
The Arnolds have been criticized for not giving to more immediate (non-experimental) causes. Their public donations focus on public policy problems that create “moral inefficiencies”. They want to help society by making it smarter.
According to The Chronicle of Philanthropy, last year, at $423 million give this far, they are the third-highest givers in the country.
Some philanthropers give money to maintain an image. Some give money to help organizations that helped them. And some, like the Arnolds, give money to actually improve society. The fact that the Arnolds think about the causes they’re supporting in terms of scientific inquiry, implementation, and impact rather than just randomly writing checks indicates that they care both deeply and smartly.
]]>The United States nonprofit sector as has grown over the years. Looking at the National Center For Charitable Statistics, the U.S. has 1,424,918 tax-exempt organizations, including 956,738 public charities, 97,435 private foundations and “370,745 other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues.” In 2010 alone, 9.2% of wages and salaries came from nonprofits.
In 2011, public charities made more than “$1.59 trillion in total revenues and $1.49 trillion in total expenses.” Of this revenue, 22% came from contributions, gifts and government grants, 72% came from program services revenues, and 6% came from other sources including rental income, special event income, among others.
Looking at charitable donations, individuals gave $217.79 billion in 2011 and foundations accounted for $46.9 billion.
According to NCVO, by 2010 there were 164,000 voluntary organizations in the United Kingdom. At least 2,500 new charities are registered each year and in 2010 4,448 new charities were registered.
54% of voluntary organizations are micro with annual incomes of less than £10,000. 31% of organizations make between £10,000 and £100,000. These organizations are less likely to employ staff and rather rely on individual donations. Organizations with over £10million annually usually have paid staff and operate nationally and internationally and also branch out locally in some cases.
The voluntary sector employs about 765,000 people which is 2.7% of the UK workforce. Over half of the workforce is employed in health and social work at 57%.
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