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AlexMerced
08-21-2010, 05:44 PM
http://libertyisnow.blogspot.com/2010/08/private-charitability.html



Private Charitability
by Alex Merced

One of the main justifications for many public services, especially ones that provide for the poor and needy is that the private sector can't or won't provide these services in enough quantities. Although, I would argue that when you coerce resources from the private sector to appropriate for these programs it shrinks the private sector meaning more people will need to participate in these welfare program which creates a self-destructive cycle. This does not this mean there is no way to provide for those who may need a helping hand without throwing a wrench in the mechanisms of capital accumulation and investment that lead to the prosperity we so enjoy.

There are many mechanisms outside of government to provide help such as religious organizations which often do community outreach and charitable work which benefits everyone even if you don't hold the same religious views of the institution. Also, people even independent of religious institutions start charitable organizations in the form of non-profits or even for profit groups.

The problem nowadays is that many rules keep religous organizations and charities from raising funds and actually using the funds to help society. The issue is not only does this make it hard for these funds to be raised and used but in many instances demotivates people to start these organizations in the first place. I know many people with great ideas and intentions just intimidated by the idea of filing the right tax forms and any laws they may violate accidentally for not meeting some health regulation or local ordinance in helping the public.

So essentially, government increases the amount of poor and needy by taking resources from the private sector but then prevents the private sector from giving as much of a helping hand as it could by having complicated red tape and tax laws.

Does this mean we have to wait to shrink government before the private sector can expand it's charitable efforts? No, you should still do your best to give to charities and volunteer your time cause it's a great way to learn lots of skills and meet the right kind of people to enrich your life and your career and of course the lives of others. For example me and my girlfriend put together backpacks and supplies for homeless kids for school for the coalition for the homeless.

As we put together these backpacks I got very into it and started throwing in more goodies than was on the original list of what the kids needed such as geometry sets, USB drives, different books on topics like economics. My girlfriend thought I was being competitive with her bag which I probably was and I was thinking why can't competition be harnessed to maximize the results from this event.

If the average person spends maybe $20 on this effort buying the cheapest supplies, how can we encourage them to do a little bit more? How about a contest, have local businesses submit a variety of gift certificates that whoever puts together the most generous backpack will receive. So now this gives an incentive for people who wouldn't normally participate to participate and those who would to spend a little bit more. Similar to the X Prize sometimes putting forth a prize for one winner will stimulate investment in many individuals.

So if I were calling the shots I would get government out of the charity business and simplify the tax code and regulations to make it easier for the private sector to be able to handle the load. Although if government must be involved how about giving out the money as a rebate for charitable work or as prizes like the X prize foundation.

One example of a rebate, if you mentor a homeless kid you get a rebate for the investment if he makes honor roll or gets accepted into college. If a town builds a community center it operates with a budget surplus a rebate for the costs of intially setting it up. What we must avoid most of all is subsidizing programs running budget deficits and programs which yield no results for this offers little to no benefits to the benficiary or society and only lines the pocket of political entrepeneurs.