The Truth About Charities

Altruism is an innate human trait. It is the nature of people to want to help those who cannot help themselves. In the United States, self-less acts are rewarded, well...only if they are monetary. Charities have historically been the predominant method for people to show their altruism through monetary donations which aim to solve systemic social issues. While the main mission of charitable organizations is public-spirited, the reality of it is not so. Charities do more harm than good.

The origin of charities can be traced back to pre-reformation England (O’Halloran et al, p. 7). Differing from the purpose of philanthropy which is to “better the human condition”, charities were designed with the intention of addressing the gap in wealth between the rich and the poor (O’Halloran, p. 8-10). This system allowed the high-income population to sustain “social cohesion” within society (O’Halloran, p. 8). This is still the case in present American society.

Charities do not meet the interests of the intended recipients. The wealthiest 5% of the population contributes approximately 60% of the charitable donations (Murphy, p. 34). This means that richest individuals are controlling the lives of the poorest, and they are not only unaware of their experiences or needs but they are acting in their own self-interests. Of the $449.6 billion charitable donations in 2020, only 12% of it went to human services (Giving USA, 2020). Religion and education were the top categories controlling 42% of donations (Giving USA, 2020).

While people have their own personal values, the original purpose of charities is to alleviate poverty and address systemic social issues. Presently in the United States, taxpayers that itemize their returns and have made charitable donations are eligible for deductions (IRS, 2020). Under current law in 2019, 91.5% of the top 10% income group itemized their tax returns (Eastman, 2019). In the total population, only 13% of taxpayers itemize their returns (Eastman, 2019). That implies that the high-income population is the group predominantly benefiting from charitable donation tax breaks. Many state that if the government did not encourage this population with tax incentives, then they would retain the wealth. Wealth distribution could occur without the incentive of charitable organizations. If the government increased taxation and had the money that would have been donated be given to them, they could control how the wealth was distributed to address systemic social issues. There would be no need for charities because the government represents the population and has a better chance of solving these systemic issues from the viewpoint of those affected.

Charities also only provide short-term relief. Feeding America is the second largest charity in the United States (Forbes, 2021). Some of the predominant services offered by this cooperation are food banks and food rescue organizations (Forbes, 2021). While providing hunger-relief alleviates daily struggles, much of the long-term solutions cannot be created with private funding (Global Giving, 2021). The Food Research & Action Center indicates that much of the problem needs to be addressed through government programs (Global Living, 2021). This is an example that monetary donations through non-profit organizations are not able to create long-term solutions that represent and improve the lives of those who need help.

It is impossible to help someone if their voice is not heard. Present day charities focus on the interests of the donors and miss the larger needs of the recipients. Monetary donations can only provide some relief and successful solutions will come from using government programs and legislation. Due to the gap in understanding between the donors and recipients, charities do more harm than good.

References

Eastman, S. (2019, 09 12). How Many Taxpayers Itemize Under Current Law? Tax Foundation. https://taxfoundation.org/standard-deduction-itemized-deductions-current-law 2019/

Forbes. (2021). The 100 Largest U.S. Charities. Retrieved 09 14, 2021, from https://www.forbes.com/top-charities/list/#tab:rank

Giving USA. (2020, 06 20). Giving USA 2020: Charitable giving showed solid growth, climbing to $449.64 billion in 2019, one of the highest years for giving on record. Giving USA 2020: Annual Report. Retrieved 09 14, 2021, from https://givingusa.org/giving-usa-2020- charitable-giving-showed-solid-growth-climbing-to-449-64-billion-in-2019-one-of-the-highest years-for-giving-on-record/

Global Giving. (2021, 03 1). How Much Would It Cost to End World Hunger? Global Giving. https://www.globalgiving.org/learn/how-much-would-it-cost-to-end-world-hunger/ Halperin, D. (2011). Is Income Tax Exemption for Charities Subsidy (3rd ed., Vol. 63)? Tax Law Review.

https://heinonline.org/HOL/P?h=hein.journals/taxlr64&i=298&a=Y29ybmVsbC5lZHU IRS. (2020). Publication 526 - Introductory Material. Publication 526 (2020), Charitable Contributions. Retrieved 09 14, 2021, from https://www.irs.gov/publications/p526

Murphy, T. B. (2000). Financial and psychological determinants of donors' capacity to give. New Directions for Philanthrophic Fundraising, 2000(29), 33-50.

https://doi.org.proxy.library.cornell.edu/10.1002/pf.2903

O'Halloran, K., McGregor-Lowndes, M., & Simon, K. W. (2008). Charity Law & Social Policy (Vol. 10). Library of Public Policy & Public Administration. https://doi

org.proxy.library.cornell.edu/10.1007/978-1-4020-8414-0_1