The development of supportive public policy is crucial to the growth of philanthropy in Ireland, the US ambassador told a symposium he hosted on the issue yesterday in Dublin.
Thomas C Foley told a gathering from the US and Ireland that five elements must be present if philanthropy is to thrive - a generous culture, financial capacity, philanthropic infrastructure, supportive public policy, and supportive public attitudes.
"Generosity and capacity are already very much present in Ireland.
"Philanthropic infrastructure is developing rapidly.
"The challenge. . . is what initiatives can be undertaken to design policies and develop public opinion in ways that will best support growth of philanthropy in Ireland," he said.
The symposium, held at the ambassador's residence in the Phoenix Park, aimed to highlight what can be learned from the American experience as Ireland develops its own philanthropic model.
Those present from the US included representatives from foundations, hospitals such as Memorial Sloan-Kettering Cancer Center in New York, universities such as Harvard, a number of law firms, and the US government.
Mr Foley stressed there was no "one size fits all" model for philanthropy.
He observed that debate on the issue in Ireland had made it clear that not everyone agreed that philanthropy as practised in the US is the right model for Ireland.
"Some even question whether private philanthropy is a good thing at all, believing that support of charities should be solely in the government domain," he noted.
The ambassador said a number of factors had been identified as important in encouraging the expansion of philanthropy in Ireland.
In the area of tax policy, he continued, some of the most often cited changes that people believed would stimulate more giving included: excluding charitable donations from the 50 per cent of income and €250,000 per year caps on tax relief; allowing tax deductions for gifts other than cash and marketable securities; excluding not-for-profit organisations from having to pay taxes, including VAT.
Mr Foley also highlighted the need to establish "vehicles" for supporting sustained and endowed giving.
"In the US, a variety of foundations, trusts, and corporations serve this purpose.
"Transfer of wealth to these entities is encouraged with liberal tax policies, reliable law and rules of governance that fit the needs of donors," Mr Foley added.