Home
/
RELIGION & LIBERTY ONLINE
/
Philanthropy Cannot Serve Two Masters
Philanthropy Cannot Serve Two Masters
Jan 2, 2026 6:02 AM

This week’s mentary looks at the trend by many in the charitable sector to e increasingly reliant on government support. Sign up for the free, weekly Acton News & Commentary newsletter in the form here (right hand sidebar).

—–

The independence of American charities has steadily eroded in recent years as more philanthropic institutions e to see their mission as one of partnership or collaboration with the government. That’s a nice way of saying, “seeking government dough.” Now, in the throes of a severe economic crisis and budget cutbacks at state and local levels, many charities are in a panic about reduced levels of funding. Anyone with eyes to see could have seen ing.

A recent report in The Chronicle of Philanthropy spoke of a California budget crisis where “charities there are braced for steep cuts to social services and health care.” In Chicago, one manager of a children’s home said, “We’ve never seen the likes of this.”

The growing dependence of many charities on government support has been accelerated by the federal government’s funding, over several recent administrations, of charitable organizations for managing various social service programs. This funding, its supporters argue, gives private initiative the resources it needs to plish good works — with a little extra help from the government. But at what cost?

What the federal funding has done, I fear, is turn too many philanthropic leaders into grant seekers, contract managers and lobbyists. Politicians, in turn, are picking winners and losers based on the self-serving calculations operative in budget negotiations. The result is plex co-dependency of charity manager, politician and bureaucrat, all working together in the quasi-governmental entity known as the “public-private initiative.”

Smart elected officials and bureaucrats also know that a charitable sector dependent on the public treasury can also be a weighty and useful ally when es time to call in the political IOUs. In New York City, the number of people employed by arts, health, and social service agencies now approaches 500,000 with a total payroll of $19.7 billion, according to the Fiscal Policy Institute. Imagine mobilizing this force to advance political ends. Doubtful? Witness the recent flap at the National Endowment for the Arts over charges that the Obama administration was using the agency for political purposes.

We have strayed far from our American tradition of turning first to local, independent initiative to tackle social problems. I am reminded of Tocqueville’s observation, in his 1840 book Democracy in America, about the intensely local focus of social and political life. “What most astonishes me in the United States, is not so much the marvelous grandeur of some undertakings, as the innumerable multitude of small ones,” he wrote. Could Tocqueville have foreseen how eagerly many Americans sign on now for whatever sweeping plan emerges from Washington to “remake” the country?

The growing dependency of charitable work on government favors is also at odds with the mandment we follow as Christians to, above all, love God and our neighbor “as yourself” (Matt. 22:37-40). We are to follow mandment without hesitation. It does not require us to first seek a nonprofit tax exemption, a state subsidy, or a plaque from the mayor. Indeed, the history of Christian philanthropy, dating from Apostolic times, shows incredible selfless work — independent of emperor or king — in establishing orphanages, hospitals, hospices and the feeding of the poor from private giving motivated only by love of neighbor.

What is often lost from view today is the fact that most philanthropy is funded with private money. Still, in recent years, some legislators have worked to impose stricter legal limits on charities, expand red tape by adding new reporting requirements, and even suggest that a nonprofit’s tax-exempt status indicates a sort of “public entity” quality. And there’s more. Senators John Kerry and Jay Rockefeller are pushing a proposal to cap deductions taken by Americans in the top tax bracket to 35 percent. The Obama administration wants to cap deductions at 28 percent.

It is a double squeeze: Limit the amount of tax deductible giving that Americans can direct to charities while at the same time making these very same charities more dependent on politicians and bureaucrats.

In a Sept. 23 letter to Senate Finance Committee Chairman Max Baucus, more than a dozen leading charities appealed to him to “protect” the charitable deduction. “Limiting the value of the charitable deduction would hurt these efforts by creating a disincentive for individuals and households who give the most to charitable organizations,” they wrote.

I couldn’t agree more. But we must go beyond political calculations and lobbying efforts. American philanthropy, with its proud history of social service, the innumerable schools, hospitals and private welfare agencies it has built since the nation’s founding, must regain the spirit of independent, self sufficient mastery of its mission to create a more just and humane society. If we don’t regain that spirit soon, we may find ourselves serving not the neighbor in need, but the powers that be.

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
Go Forth And Create
Are you creative? No, that’s not one of those silly Facebook quizzes; it’s a serious question. Would you describe yourself as “creative?” Turns out, that’s a pretty important question. Folks who study such things say that “creativity” is one of the things employers are looking for in today’s workforce, and not just in places like Silicon Valley. While we value creativity in our culture, it seems as if we’re quashing it in our kids: Common Core doesn’t exactly call for...
What’s a Christian to make of speculation?
The practice of speculation draws mixed reactions among Christians, as some believe it is intrinsically evil and others see great ing from it. Over at Legatus Magazine, Acton’s Director of Research, Samuel Gregg, hopes to shed some light on whether or not Christians should engage in speculation. The Roman Catholic Catechism condemns specific types of speculation, but Gregg argues that the practice could be justified in other situations not addressed by the Catechism. However, before Christians accept or reject it,...
‘Mockingjay, Part 1’: More than Meets the Eye
“Mockingjay, Part 1,” the first film installment of the finale to Suzanne Collins’ massively popular young adult trilogy, The Hunger Games, has dominated the box office in its opening week and over the Thanksgiving weekend. As Brooks Barnes reported for the New York Times, “The No. 1 movie in North America was again ‘The Hunger Games: Mockingjay Part 1,’ which took in an estimated $56.9 million from Friday to Sunday, according to Rentrak, a box-office tracking firm. Domestic ticket sales...
‘We Cannot Accept Trafficking’
Today, Pope Francis met with Orthodox, Anglican, Jewish, Muslim, Buddhist and Hindu representatives to sign a Declaration of Religious Leaders against Slavery. Pope Francis thanked those in attendance for making the mitment to end modern slavery in all its forms. He spoke of the spirit of fraternity among believers, along with the knowledge that humans, created in God’s image and likeness, deserve dignity, regardless of their circumstances. Therefore, we declare on each and every one of our creeds that modern...
I’m a Giant in Japan. Or, Why Income Inequality is Irrelevant
For most of my life I was, at 5-foot-10, of exactly average height. But in the span of one day in 1989 I became freakishly tall. While I hadn’t grown an inch upward, I had moved 6,000 miles eastward to Okinawa, Japan. Since the average height of native Okinawans was only 5-foot-2, I towered over most every native islander by 8 inches. It was the equivalent of being 6-foot-6 in the United States. Unfortunately, when I would leave the towns...
Delivery Boy for a Day
In light of my recent posts on boyhood and the formative power of work, anew holiday ad for UPS does a nice job of illustrating akey point: something deep down in a boy longsfor work, and that basicdesire ought to be guided, encouraged, and discipled accordingly, not downplayed, distorted, or ignored. The ad highlights one of pany’s youngest fans, a boy named Carson, who is fascinated by UPS trucks and relishes the chance to perform deliveries in a miniature model...
Where Does Your State Rank on Economic Freedom?
The Fraser Institute has released the tenth edition of their annual report on economic freedom in North America. The report considers how such factors as size of government, takings and discriminatory taxation, and labor market freedom affect people’s freedom to choose how to produce, sell, and use their own resources, while respecting others’ rights to do the same. Read the report below to see where your state ranks. ...
Video: Lessons from Ukraine’s Holodomor and Soviet Communism
The Acton Institute is currently hosting an art exhibit called “Holodomor: Through the Eyes of a Child” in our Prince-Broekhuizen Gallery at the Acton Building. It features artworks created by contemporary Ukrainian memorating the great famine of the 1930s that was inflicted upon Ukraine by Stalin, resulting in the deaths of almost 7 million people by starvation. The exhibit is the brainchild of Luba Markewycz, whose aim is to shed light on this largely unknown chapter of Ukrainian history and...
The Church’s Witness to an Atomizing Culture
In an increasingly atomizing and alienating culture, what role does the church play in holding the fabric of civilization together? Over at the Evangelical Pulpit, Bart Gingerich offers a hearty response, albeit by way of answering a rather different question: Why do folks abandon the church, particularly those who still believe in Jesus? Although plenty of disaffected church-ditchers have undergone deep shifts in basic doctrine and belief, Gingerich observes that, for many, “the abandonment testimonies seem fueled more by embarrassment...
Greasing Palms Makes For Dirty Business
If corruption were a global industry, it would be the third largest, accounting for 5 percent of the global economy. In many parts of the world, bribery and corruption are simply considered the price of doing business. However, corruption (both in business and in politics) undermines people’s trust in these institutions. Corruption also forces many people and businesses out of the marketplace and out of the political arena: those with more money are always at an advantage. Transparency International is...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved