Home
/
RELIGION & LIBERTY ONLINE
/
Can private charity replace the social safety net?
Can private charity replace the social safety net?
Aug 15, 2025 5:33 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
Acton on Tap: A Christian Economist Clarifies Fair Trade
The Acton Institute will be hosting another thought provoking and discussion orientated Acton on Tap on Tuesday, May 17. The event will begin at 6:30pm at the Derby Station (2237 Wealthy St. SE, East Grand Rapids 49506). Leading the discussion will be Victor Claar, who is a professor of Economics at Henderson State University. The Acton on Tap with Professor Claar is titled “Clarifying the Question of Fair Trade: A Christian Economist’s Perspective.” Claar will bring a unique perspective of...
Rising Food Prices and Regulation
In an article appearing on EWTN News, Acton Director of Research, Samuel Gregg, is interviewed on rising food prices and the effect on the developing world. In this article, Dr. Gregg contributed to a broad discussion on the many factors contributing to the rising food prices. He advocates for a free market economy in agriculture by discussing the effects agricultural subsides in Europe and the United State, and how these market distortions contribute to stifling the growth of agriculture in...
Men Seeking Absolute Power
David Lohmeyer turned up this excellent clip from the original Star Trek series: Kirk opens the clip by referencing the Nazi “leader principle” (das Führerprinzip). Soon after Hitler’s election as chancellor in 1933, the German theologian Dietrich Bonhoeffer gave a (partial) radio address and later lectured publicly on the topic of the “leader principle” and its meaning for the younger generation. These texts are important for a number of reasons, not least of which is that pares the office of...
Catholic Social Teaching and Capitalism
That’s the subject of my most recent article at . The new Crisis web site is a reinvigoration of the old Crisis magazine. Editor Brian Saint-Paul summarizes the history in his inaugural editorial. His statement of the vision of the new Crisis includes this: In the name of Catholic Social Thought, many in the Church continue to promote ideas of political economy that would hurt the very people they intend to help, and often do so with the suggestion that...
Stories from the Gulag
A new online exhibit: European Memories of the Gulag. (HT: Instapundit/Claire Berlinski) From 1939 to 1953, nearly one million people were deported to the Gulag from the European territories annexed by the USSR at the start of the Second World War and those that came under Soviet influence after the War: some to work camps but most as forced settlers in villages in Siberia and Central Asia. An international team of researchers has collected 160 statements from former deportees, photographs...
Christian Unity and the Russian Orthodox Church
The miraculous post-Soviet revival of the Russian Orthodox Church, all but destroyed by the end of the Stalinist purges in the 1930s, is one of the great stories of 21st Century Christianity. This revival is now focused on the restoration of church life that saw its great institutions and spiritual treasures — churches, monasteries, seminaries, libraries — more or less obliterated by an aggressively atheist regime. Many of the Church’s best and brightest monks, clergy and theologians were martyred, imprisoned...
Film Spanks U.N. Treaty on the Rights of the Child
There’s a free screening of a documentary critiquing the U.N. Convention on the Rights of the Child this Friday evening at 7 p.m. at Grandville Church of Christ–3725 44th St. SW. The film makes the case that parental rights have already been dangerously eroded in the United States and would be further eroded if Congress ratified the U.N. treaty. The screening is sponsored by the area chapter of Generation Joshua and is open to the public. More against the treaty...
An End to Ethanol Subsidies?
With rising gas and food prices, ethanol subsidies are getting strict scrutiny. Many have called for the end of ethanol subsidies, and now the Senate is acting. Senators Tom Coburn and Dianne Feinstein introduced legislation that would end ethanol subsidies and repeal the tariff that is placed on foreign ethanol. The problems with ethanol subsidies have been vast as I’ve pointed out in previous posts including a tax credit for panies that blends ethanol with gasoline—even though they are mandated...
The Welfare State and the Moral High Ground
Writing in the Sacramento Bee, Margaret A. Bengs cites Rev. Robert A. Sirico’s Heritage Foundation essay “The Moral Basis for Economic Liberty” in her column on munities and government budget battles. As a priest, Sirico has met many entrepreneurs “who are disenfranchised and alienated from their churches,” with often little understanding by church leaders of the “vocation called entrepreneurship, of what it requires in the way of personal sacrifice, and of what it contributes to society.” This lack of understanding,...
Samuel Gregg: Benedict XVI in ‘No One’s Shadow’
In a special report, the American Spectator has published Acton Research Director Samuel Gregg’s new article on the “civilizational agenda” of Pope Benedict XVI. Special thanks also to RealClearReligion for linking the Gregg article. Benedict XVI: In No One’s Shadow By Samuel Gregg It was inevitable. In the lead-up to John Paul II’s beatification, a number of publications decided it was time to opine about the direction of Benedict XVI’s pontificate. The Economist, for example, portrayed a pontificate adrift, “accident-prone,”...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved