for health, education and welfare services as basic entitlements of citizenship have led to the government's becoming a principal provider of programs and revenues in many areas once dominated by private philanthropy. And government's growing role in these areas poses fundamental questions about the autonomy and basic functioning of private nonprofit organizations and institutions. Our society has long encouraged "charitable" nonprofit activity by excluding it from certain tax obligations. But the principal tax encouragement of giving to nonprofit organizations - the charitable deduction in personal include taxes - has been both challenged from some quarters in recent years on grounds of equity and eroded by expansion of the standard deduction. The Commission offered several recommendations to the public, foundations, and the government. It recommended: That all taxpayers who take the standard deduction should also be permitted to deduct charitable contributions as an additional, itemized deduction. That families with incomes below $15,000 a year be allowed to deduct twice the amount of their giving, and those with incomes between $15,000 and $30,000 be allowed to deduct 150 per cent of what they contribute. That corporations set as a minimum goal, to be reached no later than 1980, the giving to charitable purposes of 2 per cent of pretax net income, and that further studies of means to stimulate corporate giving be pursued. That all larger tax-exempt charitable organizations except churches and church affiliates be required to prepare and make readily available detailed annual reports on their finances, programs and priorities. That larger grant-making organizations be required to hold annual public meetings to discuss their programs, priorities and contributions. That legal responsibility for proper expenditure of foundation grants, now imposed on both foundations and recipients, be eliminated and the recipient organization be made primarily responsible for their own expenditures. That tax-exempt organizations, particularly funding organizations, recognize an obligation to be responsive to changing viewpoints and emerging needs and that they take steps such as broadening their boards and staffs to insure that they are responsive. That all tax-exempt organizations be required to maintain "arms-length" business relationships with profit-making organizations or activities in which any principal of the exempt organization has a financial interest. That a system of federal regulation be established for interstate charitable solicitations and that intrastate solicitations be more effectively regulated by state governments. That nonprofit organizations, other than private foundations, be allowed the same freedom to attempt to influence