The Serve America Act: Building Human Capital for Philanthropic Organizations?

We read a great deal this week about ways in which governments can improve the ability of social entrepreneurs to build financial capital. A social venture cannot take off without financial capital, so the fact that our readings mostly discussed potential policy measures that could be taken to facilitate access to this form of capital is understandable. As the article we read for this week from the Center for American Progress points out, however, human capital is also vital to the success of a social venture. The article suggests that an effective way to make sure social ventures have access to a steady stream of human capital is for governments to encourage volunteerism among young people. According to the article, by enacting policies that incentivize volunteerism, governments can spur interest in philanthropic work among young individuals deciding on a career path.

The U.S. Government made a strong effort to encourage volunteerism when it passed the Serve America Act last Year. The legislation, sponsored by the late Edward M. Kennedy, expanded AmeriCorps and put in place a system to provide generous scholarships to students of all ages who undertake certain volunteer activities. Of particular interest to me was the principal objection voiced by those who opposed the bill. A Boston Globe article printed right after the passage of the bill quoted Gene Healy, president of the Libertarian Cato Institute, as saying, “[The Bill offers] more carrot than stick, subsidizing volunteerism rather than mandating it."

This strikes me as a curious criticism. I do not understand why providing financial support for volunteerism is a bad thing. Furthermore, I do not understand how mandating volunteerism is a good thing. Making volunteerism mandatory would obviously mean the performance of a lot of public service. The quality of service work suffers, however, if it is being performed simply because it is compulsory. Public service needs to be undertaken by those who possess a genuine desire to help others. Providing financial incentives for public service gives those who possess such a desire the means to pursue it.

We cannot know, at this point, the extent to which the Serve America Act will provide impetus for a new crop of public service professionals. The Act, however, seems to me to take the proper approach to motivating volunteerism, despite what its critics say. If you agree, then an important question becomes how to motivate more legislative initiatives in the mold of the Serve America Act.