A Brief Glimpse of the Not-for-Profit Journey in the U.S.

Some significant events that helped develop not-for-profits in the U.S. were:

Some significant events that helped develop not-for-profits in the U.S. were:

In the early 1900’s during the U.S. Progressive era, social activism and political reform efforts supported creating child labor laws, suffrage movement for women and prohibition.  The YMCA created the first significant fundraising campaign to raise monies to construct a new building in Washington D.C.

The Revenue Act of 1913 re-established income tax in the United States. It provided exemptions from the tax to four categories of institutions that are relevant to modern society:

• Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare
• Clubs organized and operated exclusively for pleasure, recreation, and other non-profitable purposes whose earnings did not accrue to any private stockholder or member.
• Corporations and community organizations organized and operated exclusively for religious, charitable, scientific, etc., societies. literary, or educational purposes, or for the prevention of cruelty to children or animals whose earnings did not accrue to any private stockholder or member
• Business leagues and chambers of commerce or boards of trade whose earnings did not accrue to any private stockholder or member

 By the 1940’s fundraising and volunteering expanded during WW II with the American Red Cross raising millions, recruited over 100,000 nurses and started the first-ever war-related blood drive.

In 1969, the U.S. Congress passed the Tax Reform Act creating the Section 501(c)3 code to allow not-for-profits to be defined as charities, offering tax exemptions.

In the 2000’s, not-for-profits adapted to technology changes with online giving and social media platforms helping inform the public of their mission’s and work to be done. In 2001, only 4% of all not-for-profit support was for the environment and 12% for the arts and culture.

While this is not a complete list, as you can see, U.S. citizens have a long and committed history in supporting not-for-profits and the importance and good work they do for our society.