Home
/
RELIGION & LIBERTY ONLINE
/
Can private charity replace the social safety net?
Can private charity replace the social safety net?
Apr 10, 2025 4:39 AM

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
Marriage in the city
In this mentary, Jennifer Roback Morse takes a look at the socio-economic factors that influence the age at which young people aim to get married. Many are waiting. One reason why so many young people put off marriage unitl their late 20s or early 30s, says Morse, is that the cost of setting up an independant household is too high — unjustifiably high. Physically, humans are ready to reproduce in the mid-teens; financially, young people are not ready to be...
Hodgepodge is good
Silla Brush penned an interesting little piece in the latest U.S. News and World Report, using the Massachusetts health care bill as a springboard to a wider observation of policy innovation at the level of state government. Leaving aside what any of us may think about any of the initiatives mentioned (they mostly represent bigger government), the observation is a good one. But then this: When the feds stall, leave it to the states. The result may be a hodgepodge....
Connecting France with good economics
It seems that it may be possible. An interesting article from yesterday’s International Herald Tribune: Danielle Scache tries to avoid using the term “capitalism” in her economics class because it has negative connotations in France. Instead, she teaches her high school students about the market economy, a slightly less controversial term she started using last year after a two-month internship at the dairy giant Danone. That was an experience that did away with more than one of her own prejudices,...
Prayer for Maundy Thursday
Almighty and everlasting God, who in the Paschal mystery hast established the new covenant of reconciliation: Grant that all who have been reborn into the fellowship of Christ’s Body may show forth in their lives what they profess by their faith; through the same Jesus Christ our Lord, who liveth and reigneth with thee and the Holy Spirit, one God, for ever and ever. Amen. –U.S. Book of Common Prayer, “Thursday in Easter Week.” ...
Bigger and better
When I was in college, living in the dorms, friends of mine would play a game called bigger and better. In this game, they would take an object–something that they owned–and trade it up for something that was worth a bit more to them, but worth a bit less to the person that they were trading with. This is a perfect example of a market economy. You have something that you can trade, somebody else has something that they can...
Prayer for Good Friday
Almighty Father, who hast given thy only Son to die for our sins and to rise again for our justification: Give us so to put away the leaven of malice and wickedness, that we may always serve thee in pureness of living and truth; through the same Jesus Christ thy Son our Lord, who liveth and reigneth with thee and the Holy Spirit, one God, now and for ever. Amen. –U.S. Book of Common Prayer, “Friday in Easter Week.” ...
Rights of skilled and unskilled alike
An op-ed earlier this week in the New York Times examines the emphasis and attention that has been placed on the influx of low-wage immigrants to the United States. According to Steven Clemons and Michael Lind, “Congress seems to believe that while the United States must be protected from an invasion of educated, bright and ambitious foreign college students, scientists, engineers and entrepreneurs, we can never have too many low-wage fruit-pickers and dishwashers.” They base this conclusion on many of...
Sheep and property rights
Regarding biblical economics at St. Maximos’ Hut, Andy Morriss writes on John 10:9-16: “Shepherds care for their flocks because their flocks belong to them; hirelings will not sacrifice for their flocks because the flocks do not belong to them. What better illustration of the value of property rights in encouraging stewardship could there be?” ...
The sweetness of the Law
menting briefly on Psalm 19, C. S. Lewis observes the description of God’s Law as “sweeter than honey” and “more precious than gold,” the kind of descriptions that occur again and again throughout the Psalter. Lewis writes, In so far as this idea of the Law’s beauty, sweetness, or pireciousness, arose from the contrast of the surrounding Paganisms, we may soon find occasion to recover it. Christians increasingly live on a spiritual island; new and rival ways of life surround...
Democracy and education
Here’s an abstract of some recent NBER research: “Why Does Democracy Need Education?,” by Edward Glaeser, o Ponzetto, Andrei Shleifer “Across countries, education and democracy are highly correlated. We motivate empirically and then model a causal mechanism explaining this correlation. In our model, schooling teaches people to interact with others and raises the benefits of civic participation, including voting and organizing. In the battle between democracy and dictatorship, democracy has a wide potential base of support but offers weak incentives...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved