Pennsylvania's earliest foundations were established in Philadelphia during the early 1800s. In 1810 the Female Association of Philadelphia was established to make gifts "to women over 60 years of age with a low per annum income." In 1831 The Union Benevolent Association began "giving for the encouragement of industry, suppression of pauperism, and relief of suffering among the worthy poor." Pittsburgh's first foundation was established in the early 1900s: In 1904 the Carnegie Hero Fund Commission was founded to "award medals and sums of money to recognize heroism voluntarily performed." After World War II the foundation movement experienced explosive growth, attributed to societal needs that surfaced in the wake of the war, the emergence of corporate foundations, a new emphasis on family foundations with living donors, and the very high income tax rates then in effect. Foundation creation plummeted in the 1970s, following the passage of the 1969 Tax Act. This legislation introduced stringent regulations on independent foundations, accorded less favorable tax treatment to donors, and imposed annual payout requirements and a 4% excise tax. Regulation, and the generally hostile climate that surrounded it, resulted in a chilling effect. Questions about the favorability of company direct giving programs over corporate foundations and a weak economy also contributed to the downturn. At the start of the 1980s the philanthropic community strengthened efforts to improve the regulatory environment, attract new philanthropists, and expand organized philanthropy. Growth accelerated in the mid- 1980s, a period favored by vibrant economic times and new wealth creation. Contributions to foundations peaked in 1986 as individuals responded to greater incentives for giving. The Tax Reform Act of 1986 created a disincentive for establishing foundations. In 1987 the stock market tumbled, ending an era of unprecedented accumulation of wealth and ushering in a period of financial instability. The economy faltered and then moved into a painful recession, which for many areas of the U.S. lingered into 1992. After a period of uncertainty, the mid- 1990s were characterized by a robust economy, extremely low inflation and a roaring stock market. These conditions continued unabated from 1995 until 1999. As a result, during the 1990s, the number of grantmaking foundations in Pennsylvania increased by 77% to 3,005. Source: Foundation Yearbook, Foundation Center, 2001 & FC Stats.