Free to Give

Philanthropy flourishes when citizens are free to organize, give, and serve their communities without unnecessary government interference. The Free to Give Index, published by Philanthropy Roundtable, is the first comprehensive, state-by-state assessment of how policy shapes charitable giving and nonprofit activity.¹By benchmarking every state against a consistent set of policy measures, the Index helps policymakers identify the policies, laws, and economic conditions that encourage—or discourage—charitable activity and evaluate reforms that can strengthen civil society and preserve the freedom to give.

Measuring Philanthropic Freedom

The Free to Give Index evaluates state policy across three dimensions:

• Broad Policy Environment examines the economic conditions that support giving, including taxes, occupational licensing, and regulatory burdens that affect resources available for charitable purposes.
• Nonprofit Freedom drills into the rules governing charitable organizations, including nonprofit formation, reporting requirements, and fundraising regulations that create compliance costs.
• Donor Confidence assesses the rules that shape donors’ willingness to give, including protections for donor privacy and donor intent, as well as the tax treatment of charitable contributions.

State Policies Shape Charitable Activity

The Index’s five highest-ranked states—Montana, Wyoming, South Dakota, Iowa, and Indiana—shown in the 1st quartile on the map below, combine economic openness, streamlined nonprofit regulations, and strong protections for donors. The five lowest-ranked states—Connecticut, New York, Washington, New Jersey, and California—shown in the 4th quartile, have low levels of economic freedom, complex regulatory frameworks, and weaker donor safeguards.

The top 5 states average 122 charities per billion dollars of GDP, compared with 63 among the bottom 5. Across all states, a 1-point increase in the Index is associated with roughly 7 additional charities per billion dollars of GDP. This relationship is consistent with previous research linking supportive policy environments to a stronger nonprofit sector.

Policy Implications

States that reduce unnecessary barriers to charitable activity create stronger conditions for philanthropy while preserving transparency and public trust. The Index is a tool to evaluate reforms, compare states’ performance over time, and identify policies that support charitable activity.

Policymakers seeking to strengthen charitable giving can ask these basic questions:

1. Does our state’s regulatory framework protect or discourage the freedom to give?
2. Do our policies empower donors and nonprofits, or increase compliance costs that weaken charities?
3. Where can regulations be simplified in ways that protect donor privacy, strengthen charitable freedom, and sustain public confidence?

The Free to Give Index translates these questions into measurable policy choices.