Designed for high school economics students as a public service project of the American Fletcher National Bank, the booklet examines corporate philanthropy in the context of President Reagan's "New Federalism," a program designed to return social welfare and human service programs to state and local government and the business community. In compliance with this program, a Task Force on Private Initiative was created to encourage an increase in corporate philanthropy. However, public polls indicate most Americans underestimate current corporate contributions to philanthropic causes such as colleges and universities, health and welfare, civic activities, and culture and art groups. The major shortcoming in corporate philanthropy today is that the burden is borne by too few, with nearly 50% of all corporate charity coming from fewer than 1,000 companies. Corporate philanthropy results from a sense of social responsibility, the notion that profitability increases by improving social conditions, and the need to maintain political strength. Beyond cash contributions, corporations create jobs and training for the unemployed, invest in decaying inner cities, loan expertise to local and state government, free employees to conduct charitable work on company time, donate materials and services, and loan employees for extended services with an organization. Thus, in light of current economic decline, a growing number of business leaders contend that the New Federalism is unrealistic. (LH)