Home
/
RELIGION & LIBERTY ONLINE
/
Philanthropy Cannot Serve Two Masters
Philanthropy Cannot Serve Two Masters
Jan 29, 2026 11:25 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
Reinhold Niebuhr, the Ecumenical Movement, and a Global Government
Perhaps not from its inception, but certainly in the post-WWII era, the global Christian ecumenical movement, as represented by groups like the World Council of Churches, the Lutheran World Federation, and the World Alliance of Reformed Churches, has been increasingly dominated by Marxist economics, liberation theology, and transformationalist ethics. Much of this was mediated through the influence and work of Reinhold Niebuhr. Niebuhr in part observed the reality that since there was no single government above nation-states which could restrict...
Quran, Money Lending, and Economic Growth
Samuel Gregg, director of research at the Acton Institute, has a piece in today’s Detroit News titled, “Will Quran limit growth of Muslim nations?” mentary addresses the economic outlook of Muslims, and Islamic nations, considering their religious position against the charging of interest. Gregg notes: Given the Arab world’s increasing religiosity, however, one potential obstacle could significantly handicap these nations’ financial creativity and economic diversification policies: Islam’s prohibition of interest-charging. Gregg also briefly examines how Christians settled the moral dilemma...
The Largest Anti-Poverty Campaign in The World
The problem and pain of poverty garners a prolific amount of attention in the Church today, and rightfully so. In Evangelical Christian Churches, poverty awareness, discussion, and action has risen to new heights. Much of this has to do with the rapid speed munication, increase in education, and a reaction against social conservatives, who in the past, have emphasized much of their focus on more specific social and moral issues such as abortion. While I was in seminary, during an...
Club for Growth on The Call of the Entrepreneur
Andrew Roth of the Club for Growth provided a short assessment On The Call of the Entrepreneur. The Call will be the opening film at the American Film Renaissance Festival in Washington D.C. on September 26th. Roth declared: I was given a sneak peek of “The Call…” earlier this month. It’s a fun, feel-good movie that provides real life examples of how entrepreneurs have succeeded personally, and how they’ve made the world a better place. The show also cuts mentary...
What Would Jesus Drive? – Jay W. Richards in NRO
Jay W. Richards of the Acton Institute, has mentary today in the National Review Online titled, What Would Jesus Drive?: Electrified Evangelical theological confusion. Richards notes in his article, “With respect to the environment, the theological principles are uncontroversial: human beings, as image bearers of God, are placed as stewards over the created order.” He asks four separate questions, which he calls “tough.” (1) Is the planet warming? (2) If the planet is warming, is human activity (like CO2 emissions)...
The Uniqueness of Christian Ecology – Abundance
"Here is a boy with five small barley loaves and two small fish, but how far will they go among so many?" [John 6:9] Among all the many good things going on last weekend in Boise, I (and a few others) noticed something a bit disconcerting. The way many of the topics were covered shows how prone Christians are to being consumed by doom and gloom messages of scarcity and lack and overpopulation and an "ever smaller earth." While it’s...
GodblogCon 2007
The Acton Institute is a sponsor of this year’s Godblogcon, a conference that “will equip you with a working knowledge of new media technologies and its impact on society, empowering your ministry to employ quickly and easily new media technologies to engage culture for the cause of Christ.” GodblogCon 2007 will be in Las Vegas on November 8-9. Blogging luminaries like Joe Carter, La Shawn Barber, and Al Mohler will be speaking, and the conference will also be a part...
Reformed Education and Pentecostal Evangelism
I’ve heard it said from a number of leaders in the munity that there is a great opportunity for Reformed churches to be a positive influence on the growth of Christianity abroad, particularly in places like Africa where Pentecostalism has made such large inroads. The thesis is that as time passes and institutions need to be built, the traditionally other-worldly Pentecostal faith will by necessity need to embrace a more prehensive world-and-life view. Reformed institutions ought to be prepared to...
The Return of Indulgences
You may have heard this line before, “As soon as the coin in the coffer rings, a soul from purgatory springs.” The quote was attributed to Johann Tetzel, a German Dominican Friar, in charge of collecting indulgences in 16th Century Germany. However, it’s not Roman Catholics who have embraced a re-run of indulgences, but the new gurus of carbon-offsetting at the Evangelical Climate Initiative. Iain Murray of the Competitive Enterprise Institute, takes issue with ECI’s latest venture into indulgence –...
Blessed Antonio Rosmini
Roman news agency Zenit reports the ing beatification of Antonio Rosmini. Rosmini was a notable Italian intellectual and priest who has long been among the figures highlighted by the Acton Institute’s survey of the history of liberty. An additional point making this particular road to sainthood interesting is that some of Rosmini’s thought had been called into question by the Vatican in the nineteenth century. That his theology was sound was confirmed by the Congregation for the Doctrine of the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved