Home
/
RELIGION & LIBERTY ONLINE
/
Can private charity replace the social safety net?
Can private charity replace the social safety net?
Jan 29, 2026 6:42 PM

After Black Friday, Small Business Saturday, and Cyber es Giving Tuesday. The Tuesday following Thanksgiving has e the unofficial launch of the charitable season, when many people around the globe focus on their holiday and end-of-year giving.

The outpouring of generosity during the giving season raises the question of why all charity can’t be funded privately. Do we even need agovernment social safety net anymore?

Before we can answer that question we must first determine the replacement cost of the safety net. What percent of federal budget goes to programs that provide aid (other than health insurance or Social Security benefits) to individuals and families facing hardship? Forty percent? Thirty percent? Twenty percent?

The actual answer is9 percent, or $366 billion.

Could the amount of money donated to private charities cover the substitution cost for the social safety net? The short answer is: it’s not even close. As Arthur C. Brooks explains,

It would be wonderful if America could solve all problems of poverty and need through private charity. We can and should give even more, and conservatives must continue to lead by example. But even in this remarkably charitable country—where voluntary giving alone exceeds the total GDP of nations such as Israel and Chile—private donations cannot guarantee anywhere near the level of assistance that vast majorities of Americans across the political spectrum believe is our moral duty.

Consider the present total that Americans give annually to human-service organizations that assist the vulnerable. es to about $40 billion, according to Giving USA. Now suppose that we could spread that sum across the 48 million Americans receiving food assistance, with zero overhead plete effectiveness. It e to just $847 per person per year.

Or take the incredible donation levels that followed Hurricane Katrina in 2011. The outpouring of contributions exceeded $3 billion, a record-setting figure that topped even the response to the attacks of September 11, 2001. But even this historic episode raised enough to offset only 3 percent of the costs the storm imposed on the devastated areas of Louisiana and Mississippi. Voluntary charity simply cannot get the job done on its own.

In 2017, an estimated $274 million was raised online in the U.S. during the sixth annualGiving Tuesday. To cover just the cost of the safety net provided by the federal government ($366 billion) we’d need to raise 3.5 times more than was donated on Giving Tuesday every single day throughout the entire year.

The unfortunate reality is that Americans donate to private charity less than 10 percent of the amount provided by the government’s social safety net. But let’s assume that state-based welfare is rife with fraud and abuse and that after reforms we could cut the amount spent in half. Even then private charity would only cover 20 percent of the original amount needed.

Some people might argue that charity would be funded if thegovernment wasn’t already taking the money from citizens. But last year Americans were given a tax cut equal to about $550 billion a year. That’s more than enough to pay for the safety net ($366 billion) and still have half a billion dollars in leftover tax cuts for every man, woman, and child in America. Yet we are not expected to see $366 billion in directed charitable giving to alleviating poverty.

There are a lot of conservatives (including me) who think our neighbors in need would be better off if most or all of the safety net was funded by charity. But the sobering reality is that we have a long, long way to go before that is even in the realm of possibility. Americans only currently give bined total of $390 billion a year—and that’s for every form of charity (churches, education, non-profits, animal shelters, arts programs, etc.).

If we are going to convince our fellow Americans that government should get out of the welfare business, we need to figure out a way to close the charity gap and show the private sector truly can take care of the poor and needy.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Getting Religion Back into Our Economic Lives
National Review Online’s Kathryn Jean Lopez talks to Rev. Sirico about his new book, Defending the Free Market: The Moral Case for a Free Economy, the link between economic liberty and public morality, and the differences between socialism and capitalism: LOPEZ: How can you get more greed with socialism than capitalism? FR. SIRICO: To the extent that socialism holds back creativity and thus productivity, it increases poverty. When people e desperate, even good people can e self-centered. Few of us...
Russian Warns on Demonic Roots of Socialism
In Rome to address a conference sponsored by the Dignitatis Humanae Institute (Institute for Human Dignity) on June 29, Russian pro-life campaigner Alexey Komov expressed amazement for the support that socialism gets in some quarters in the West even though it has “never worked in world history.” In an interview with the Zenit news service, Komov pointed to how this ideology had caused such great pain and suffering “all in the name of social reform, progress and improvement.” His criticism...
Upcoming Scholarship Deadline
If you, or someone you know, are searching for last-minute scholarship opportunities, I invite you to please take the time to learn more about the scholarship programs offered through the Acton Institute. Through the Calihan Academic Fellowship program, Acton’s Research department offers scholarships and research grants from $500 to $3000 to graduate students and seminarians studying theology, philosophy, economics, or related fields. Applicants must demonstrate the potential to advance understanding in the relationship between theology and the principles of the...
‘That’s not fair!’ — a lesson in living in a free society
If you’re a Facebook fan of YogaFit Training Systems, you can get 15 percent off its conferences. If your kid gets good grades, he or she can score free nuggets at Chick-Fil-A. Presenting your military ID will get you a discount at Advance Auto Parts. And many independently-owned Ace Hardware stores offer 10 percent discounts to senior citizens. Does a business have the right to offer certain discounts to certain people in order to bolster business and offer a service...
The Declaration of Independence and the Necessity of Religion
Last week’s Wall Street Journal features a column from Michael Meyerson detailing the religious perspective of the Declaration of Independence. With questions of religious liberty occupying a sizable space in the public square, the article is especially timely. According to Meyerson, the Declaration’s brilliance lies in the “theologically bilingual” language of the Framers. Phrases like “endowed by their Creator with certain inalienable rights” employ what he calls a nondenominational inclusivism, a show of rhetoric that neither endorses nor rejects any...
U.S. sugar policy invites bad jokes
Because there’s nothing sweet about it. As the 2012 Farm Bill moves through Capitol Hill, the policy debates are ramping up. The bill, projected to seriously cut the deficit, has garnered bipartisan support thus far, but will likely meet more resistance in the House. Whether or not the 2012 Farm Bill will cut its projected $23 billion dollars is subjective. Fluctuating crop prices and the extent to which the weather cooperates (pray for rain) will determine that. What is certain,...
‘Religion Takes us into the Marketplace’
On The Foundry, Sarah Torre writes about the many faith based challenges that remain to the Obamacare law. There are many organizations that are religious in nature, but are not themselves churches. ply with the new health laws, they will pelled to provide conscience violating services. Towards the end of the post, Torres quotes the president of Geneva College, Dr. Ken Smith: The issue that we have with the entire law is that the Obama Administration has tried to define...
America the Acquisitive?
Last week, in ...
What life was like in 1776
During the Revolutionary Era, Americans had the highest per capita e in the civilized world and paid the lowest taxes, says Thomas Fleming, and they were determined to keep it that way. By 1776, the 13 American colonies had been in existence for over 150 years—more than enough time for the talented and ambitious to acquire money and land. At the top of the South’s earners were large planters such as George Washington. In the North their es were more...
Legatus Magazine & Acton Round-Up
The Acton Institute’s staff is heavily featured in the July/August issue of Legatus Magazine. First, there is a brief review of the Rev. Robert Sirico’s new book, ‘Defending the Free Market’: He shows why free-market capitalism is not only the best way to ensure individual success and national prosperity, but is also the surest route to a well-ordered society. Capitalism doesn’t only provide opportunity for material success, it ensures a more ethical and moral society as well. Next is Samuel...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved