Private Charities Part I: Overview

Do you have a favorite charity you enjoy supporting? If so, is it a well known, multinational charity such as the American Red Cross or Salvation Army whose aid may support relief efforts following a devastating earthquake in Haiti?

Or do you prefer a local charity whose funds may support your own community? Going a step further, do you prefer to simply help out your fellow citizens by directly giving them of your time, talents, and treasures rather than going through a charity acting as a middle man?

If you do support charities, are you cause-oriented? Medical research (ie. breast cancer), disabled veterans,  save the rain forest, save national parks, scholarships for prospective students, or human rights just to name a few.

One charity a majority of the nation supports is the federal government. About 39% of federal tax dollars go towards welfare programs (Basic Level of Care). Thus an individual making $40,000, who may pay ~$4,000 in federal taxes, will give ~$1500 to "government charity".

As outlined in my Roles of Government post, I do believe the federal government should be a “lender of last resort” in meeting the basic needs of its citizens. However, I believe privately managed charities (including friends/family) have many advantages compared to their main competitor: public assistance programs.

1. The Economic Reason
• I believe private charities exhibit greater efficiency and accountability.
2. The Outcome Reason
• I believe given the same number of resources, private charities can produce better outcomes.
3. The Freedom Reason
• I favor a small government (My Voting Issues) and preserving citizens’ freedom of how to best spend their time, talents, and treasures.
4. The Social Reason (generosity vs. force)
• I believe an assistance system built on generosity and personal relationships will build community and cohesiveness rather than a system built on force and impersonal handouts.

Although I see many advantages in moving towards a system more reliant on private charities (again, includes family/friends) utilizing generosity, rather than governmental welfare utilizing force, there are real fears and questions which warrant addressing:

1. Private charities will be overwhelmed by the massive needs of a community.
2. Poor communities may suffer the most due to lack of local capital.
3. Some, if not many, will donate nothing to private charities.

I challenge you to determine if, given the option, you would prefer to give of your time, talents, and treasures to government sponsored charities (food assistance, Medicaid, Medicare, WIC, housing assistance, etc.) or to another charity of your choosing (Red Cross, Salvation Army, Breast Cancer Society, Feeding America, Disabled Veterans). Secondly, I would challenge you to determine how you feel when you are forced to support a cause you don’t believe in, or believe could be solved more efficiently and/or effectively.

Next Week’s Topic: Private Charities Part II: The Economic Reason