A Competitive Massachusetts Paves the Way For Charitable Giving

Massachusetts is home to some of the most innovative and successful individuals and companies in the country. When these big-dollar donors are looking for charitable programs and nonprofits to support, they often do so right in their own backyard. 

It’s more than generosity – it’s responsibility. It’s a big part of what makes Massachusetts a great place to work and live. 

Just this year, the Boston Business Journal recognized 95 of Massachusetts’ top corporate charitable contributors. These companies accounted for nearly $460 million in total cash and in-kind contributions, mainly invested in Massachusetts. 

Of the millions of dollars spent in charitable giving each year, a few cases stand out.

Charitable Giving Keeps Massachusetts a Healthcare, Education Leader

Massachusetts has historically been a leader when it comes to healthcare and education, and the state’s charitable donors play a big part in the continued success of these fields.  

Chairman and CEO of Suffolk Construction Company John Fish recently pledged $20 million to Cape Cod Healthcare – the largest donation in the health system’s history. The gift will greatly expand healthcare services on the Cape, especially for elder care.

Granite Telecommunications CEO Rob Hale also made a historic $100 million gift to Boston Children’s Hospital. His company hosts an annual “Saving by Shaving” fundraiser, which raised $4 million for Boston Children’s this year. Since its inception, this event has raised over $60 million.

When it comes to education, several state leaders have made big donations. State Street’s foundation invested millions to support Massachusetts-based schools and nonprofits. This includes $8 million for Early College, the Foundation’s signature initiative strengthening college and career pathways across seven Boston and Quincy high schools. Amos and Barbara Hostetter – the founders of the Barr Foundation –  have spent millions of dollars supporting public schools and college access for Massachusetts students.

Donors Work to Uplift Communities, Tackle Key Issues 

While charitable giving can bolster our strongest sectors, it can also provide key resources for solving some of the Commonwealth’s biggest challenges. Communities across Massachusetts benefit from philanthropic donors who often have strong ties to the neighborhoods they support.

Affordability, including housing costs, have been top of mind for Massachusetts residents. Several donors across the state are supporting efforts to provide relief from rising costs. 

This year, TD Bank sent $750,000 in grants to charities in Massachusetts focused on housing stability. Joyce and Bill Cummings – founder of Cummings Properties – have donated the large majority of their commercial real estate holdings to their foundation arm. Their business model directs 100% of rental profits from foundation-owned properties to local nonprofits. These efforts have provided approximately $650 million to Greater Boston nonprofits – including programs to support home ownership. 

Eastern Bank has a foundation that has made affordable housing one of its core priorities. In 2020, it announced $1.5 million for organizations addressing housing instability, including eviction prevention, rental assistance, homelessness, and foreclosure prevention. It has also provided separate grants to support housing assistance throughout the state. 

Many of these nonprofits enrich communities through development beyond housing. For example, Boston-based New Balance has given extensively in Massachusetts. Recently, the sneaker company donated $5 million to support the construction of an indoor gymnasium in Dorchester.

Conclusion

There’s a lot to celebrate when it comes to charitable giving in Massachusetts. Our state has fostered the growth of innovative companies and responsible business leaders who are committed to giving back to their communities. 

Over the past twenty years, a concerning trend has emerged when it comes to charitable giving in Massachusetts: While the amount being donated is going up, the number of actual donors has dropped. Meanwhile, the number of higher earners in Massachusetts is on the decline. In 2023, the Commonwealth had the largest decrease of taxpayers with incomes above $1 million in the country, as a share of its taxpayer population. Meanwhile, lower-tax competitor states like Florida are gaining million-dollar earners.

A focus on increasing competitiveness – including lowering costs for businesses and individuals – would make Massachusetts a more affordable place to work and live. Long term, it would also encourage more charitable giving, and help expand the already strong donations across issue areas in Massachusetts.