Page 30 - MidJersey Business - September 2014

1,831

CHARITABLE GIVING
IN MERCER COUNTY

{continued from page 26}

emphasizes a major conclusion funds should be categorized
that we reached in our re- as funds for education, there

search: Philanthropy does not is a difference in the type of
necessarily provide immediate “educational” funds given to
NUMBER OF 501(C)(3) CHARITIES OPERATED IN
relief to those most in need of Princeton University and those
it. Additionally, to utilize phi- given to Trenton. The money MERCER COUNTY, HOLDING $29 BILLION IN ASSETS,
WHICH IS THE HIGHEST OF ANY COUNTY IN NEW JERSEY.
lanthropy most effectively, it is given to Princeton can hardly
important to have an in-depth be categorized as helping

understanding of communities people in need, especially when
and their nuances.
contrasted to money given to we can observe that two huge which operate with the luxury

As a corollary of understand- education in Trenton. Similar foundations, Princeton Univer- of tax-exempt status. Because
ing the nuances within a com- to the special treatment that sity and the RWJ Foundation, these organizations do not have

munity, we contend that any Princeton University should dominate philanthropy in to comply with any reporting

further study of philanthropy receive when analyzing Mercer Mercer County; therefore, any measures, we must question
in Mercer County should pay County, the RWJ Foundation future study about foundation whether many of them are

special attention to both the needs to be treated as a special activity must take these consid- related to philanthropy in the
RWJ Foundation and Princ- case.
erations into account.
purest sense of the word. Phi-

eton University.
RWJ explains how most of lanthropy should address the
Princeton receives a major the money that Mercer County needs of society, particularly
POLICY RECOMMENDATIONS
portion of funds given to the donates outlows to the rest of The most pressing policy helping the poor and disen-
county, funds most often the nation. The main recipient recommendation that we have franchised. We do not contend

earmarked for education of RWJ Foundation money is for the philanthropic sector is to that organizations that further
and research. While there
research in Washington, D.C. increase its transparency. With- philanthropic ideals should

is little argument that these
In light of these two factors,
out transparency, it is nearly lose their tax-exempt status,
impossible to reach a better rather that they increase the

understanding of the how funds legitimacy of that status by
are used in the philanthropic increasing transparency and

sector, not to mention the dif- providing performance mea-
sures. We contend the standard
iculties presented in enforcing
accountability with respect to to receive this tax-exempt

the allocation of these funds.
status should be more akin to
In addition to understanding the standards of evaluation and

how institutions collect and transparency that governmen-
distribute funds, we recom- tal entities follow.

mend that there should be an An increase in transparency
effort to create more uniform will allow for future iterations

performance measures so best of our research to yield more
practices can be identiied and results. Speciically, we would

further reined. Without these like to see future research focus
performance measures, there is on individual giving, as it is

no objective manner in which such a large portion of chari-
we can determine what are the table contributions. However,

most effective methods in de- without more access to detailed
livering the services that phil- information, we believe that

anthropic institutions strive to the next logical step in this line

provide. Without an increase in of research would be to analyze
transparency and an objective corporate giving and its impact

measurement of performance, on the philanthropic sector. If
we feel that it is fair for politi- the next group of researchers

cians and the American public would like to focus on indi-
to question the continuation
vidual giving before policies

of tax exemptions for these in- that ensure transparency take
stitutions. There are a diverse effect, we recommend that they

group of active philanthropic utilize a well-administered sur-
organizations today, many of
vey of the individual giving.

business
28 midJersey