Two percent isn’t going to do it. That’s the basic insight at the heart of Dan Pallotta’s argument.

Charitable giving has been stuck at 2 percent of U.S. GDP for 40 years, ever since we started measuring it. And in a world of increasing demands and ongoing fiscal belt-tightening — a world where government looks unlikely to step back in to support needed social programs — the nonprofit sector fundamentally has to contend with this fact: two percent just isn’t enough.

So what can we do in response? Basically, we have to do three things: 1) work to increase the amount people give, 2) make the most of every penny we get, and — crucially — 3) go beyond giving entirely.

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