As Colorado celebrates its 150th anniversary this year, the public conversation is centered on what makes our state successful and how it can recapture the success that characterized the previous decade. This conversation pulls together many of the things that made Colorado stand out: the rapid attraction of high-value industries, an enviable lifestyle packed with outdoor adventures and vibrant city lifestyles full of recreational opportunities.   

In their assessments, commentators and observers often leave out a critical ingredient: Colorado’s deep-seated spirit of charity. This philanthropic attitude shows up in the large-scale donations of the state’s largest foundations and in small donations of time, such as volunteering at a local shelter or tutoring.   

A new report from the Common Sense Institute quantifies not only the scale of that generosity, but the role it plays in Colorado’s economy and communities.   

In 2025 alone, Coloradans are estimated to have donated more than $6.1 billion to charitable causes. This donation base rivals Colorado’s tax base. It is equal to approximately 61% of all individual income tax revenue collected by the state of Colorado in fiscal year 2024-25.  

Coloradans are generous with their time and labor as much as they are with their finances. Colorado residents contribute an estimated 110 million volunteer hours annually. That is the equivalent of roughly 36% of the annual hours worked by Colorado’s entire state government workforce.  

Colorado’s experience shows that thriving communities depend on a culture of voluntary service and civic responsibility. For the nation’s 250th birthday and Colorado’s 150th, it is fitting that the state reflects a philanthropic culture that 19th-century thinkers pinpointed as crucial to a healthy society.   

Nearly two centuries ago, Alexis de Tocqueville observed that Americans possessed a unique tendency to form associations and work together to solve problems. Unlike many European societies of his era, Americans did not instinctively turn first to government. They built schools, hospitals, charities, churches, libraries and civic organizations themselves through voluntary association, seeing a need and acting accordingly.  

Colorado exemplifies this attitude.  

Colorado ranks among the most generous states in the nation. In 2023, approximately 62% of Colorado residents reported making charitable donations, the second-highest rate in the country. When charitable giving, volunteering, helping neighbors and civic engagement are considered together, Colorado ranks third nationally in CSI’s Philanthropic and Community Service Index.  

This generosity strengthens the economy while it strengthens civic bonds.  

Colorado’s nonprofit sector directly and indirectly supports hundreds of thousands of jobs and generates tens of billions of dollars in economic activity. According to data cited in CSI’s report, nonprofit organizations contribute approximately $25 billion to Colorado’s gross domestic product and support an overall economic impact of roughly $62 billion.  

The beauty of this charitable spirit is that it occurs at the largest levels as well as the smallest. Large foundations in Colorado are as much a part of philanthropy as individuals. Organizations such as the Daniels Fund, El Pomar Foundation, Boettcher Foundation, Colorado Health Foundation, Denver Foundation and dozens of others provide critical funding for health care, education, workforce development, disaster recovery, and countless community initiatives.  

Colorado’s largest 100 foundations alone generated an estimated $4.7 billion in direct economic benefits. This is not a feature of COVID-era wealth-spreading, either, but a durable feature of Colorado’s civic life. Foundation giving has more than tripled since 2006.  

The state’s charitable spirit is perhaps best illustrated by Colorado Gives Day.  

Since its creation in 2010, the annual campaign has generated more than $700 million in inflation-adjusted charitable contributions. Last year alone, Coloradans donated $56.5 million through the effort.  

The voluntary nature of Colorado’s charitable attitude has implications for governance. There is a relationship between government expansion and private giving. A substantial body of academic research suggests that when government spending increases in areas traditionally supported by charitable organizations, private philanthropy often declines. Economists refer to this phenomenon as “crowding out.”  

Economists differ on how much one crowds out the other, but the underlying principle is easily understood. Individuals have finite resources. Families have finite budgets. Every additional dollar extracted through taxation is a dollar unavailable for charitable contributions, local causes, religious institutions, scholarships, cultural organizations, or community initiatives. This happens at scale. When government assumes greater responsibility for addressing social challenges, citizens may feel less personal responsibility to address them themselves.  

This is not merely a theoretical concern.  

Research reviewed in our report found evidence that charitable giving responds significantly to tax incentives. Increases in government spending can reduce both private donations and nonprofit fundraising efforts. Other studies have documented similar effects across education, social services, and charitable relief programs. In a state in which the legislature is passing 56% more bills than it did in the previous decade, this bears careful consideration.   

None of this means government spending is inherently harmful. Nor does it suggest every public program crowds out private giving. It does mean policymakers should recognize that taxation and public spending carry consequences beyond their immediate fiscal effects. When government expands, civil society can contract.  

One reason philanthropy remains so important is that it often succeeds where centralized systems struggle. Local organizations are frequently closer to the problems they seek to solve. They can experiment, adapt, innovate, and tailor solutions to individual circumstances. They can mobilize volunteers, leverage community relationships, and respond quickly to emerging needs. CSI’s research cites an academic study that pinpoints this feature. Seventy percent of a tax dollar destined for the poor is eaten away by administrative costs. In a charitable organization, that figure is flipped – 70% of the donated dollar reaches the recipient.   

Most importantly, charitable giving strengthens the social bonds that hold communities together.  

The act of giving benefits not only recipients but donors themselves. Research consistently finds that volunteering and charitable engagement are associated with stronger communities, greater social trust, improved well-being, and higher levels of life satisfaction. These are powerful draws for a state looking to attract and retain the best and brightest.   

As we celebrate Colorado’s sesquicentennial, we should recognize this spirit of generosity as a social bedrock. In 2026, Colorado is facing a host of issues from slowing population growth to unaffordability to child-care expenses to ongoing budget difficulties. The challenge for policymakers is to preserve and strengthen the conditions that allow Colorado’s culture of giving to flourish for the next 150 years.   

Flourishing means not only encouraging new business growth but encouraging the spirit that drives so many Coloradans to care for each other with no expectation of return. Colorado is fortunate to have this level of generosity. Leaders should do what they can to encourage it in the years ahead.   

Cole Anderson is director of policy and research, and Thomas Young, Ph.D., is a senior economist at the Common Sense Institute.