Giving form to his "compassionate conservatism" political
slogan, Texas Gov. George W. Bush has proposed $ 8 billion in tax incentives to promote
charitable giving among those who do not itemize their tax returns. The dollars would
finance "little armies of compassion," the religious and community organizations
critical to Bush's plans for confronting poverty and other social ills. Not to be outdone,
Vice President Al Gore has advocated a "partnership" between government and
faith-based organizations to solve persistent social problems that plague American
communities.
Although Bush and Gore are sure to disagree on programmatic details, their substantial
agreement is significant. Government has become so toxic politically that presidential
candidates are reluctant to say a government program might be a good thing. Instead, the
preferred approach is to delegate public-policy responsibilities to charities, religious
organizations and community groups.
But this growing reliance on nonprofits as tools of public policy poses serious problems.
First, allocation of scarce resources could ultimately become a sort of popularity
contest--particularly when direct funding is replaced by tax relief--as charities vie for
publicly underwritten donations. Then organizations doing work that is less appealing,
less "crowd-pleasing" would inevitably have less resources. Second,
"governmentalization" of private charities may undermine them, changing their
focus, bureaucratizing their organizations and driving out volunteers. The potential costs
of delegating social policy to charities are too high.
Charitable organizations play an important role in American society. Candidates have
praised specific organizations, including Sharing and Caring Hands, which operates a
shelter in Minneapolis, and Haven of Rest Ministries, which serves the homeless in Akron,
Ohio. Well-known national charities like the Salvation Army and United Way provide a wide
range of services across the country.
To presume that philanthropic organizations can take on an even greater share of the
responsibility for combating poverty--even with additional financial resources supplied by
the government--is foolish. Charities are cost-effective precisely because they rely on a
labor force of volunteers and service-minded individuals willing to work for low pay. Even
with additional money, it is not certain that nonprofits can dramatically increase their
capacity. Volunteers and low-paid staff don't grow on trees. Some social problems will not
be addressed.
Thus a form of triage will still be required. This is an everyday reality of social
policy. However, this decision is now made by democratically elected public officials.
Relying on charitable organizations shifts this critical responsibility into private
hands. Consider Bush's proposed $ 8-billion tax relief for charitable contributions as a
substitute for publicly financed activities. Assuming Americans are spurred by the tax
benefits to make donations, the recipients of this largess are unknown. One could argue
that this is democracy at its finest: individual citizens deciding where their money goes.
On the other hand, social policy by plebiscite may leave critical needs unmet while
popular charities prosper. For example, will donations go to museums or job training for
the homeless? Who knows? All potential recipients are equal in the market for
tax-deductible donations. There is no hierarchy of need, no guarantee that society's most
important causes will be funded. Indeed, no debate about what the most important causes
are.
Distribution of public money by tax credit puts additional pressure on charities to market
themselves to potential contributors. This consumes valuable resources and distracts
charitable organizations from serving the needy, a problem already evident in charities
that spend an inordinate sum on raising additional funds. Moreover, it turns the
allocation of resources for social problems into a perverse popularity contest. Only the
problems "favored" by a sufficient segment of the population will be addressed.
The implications are obvious. Shelters to remove unsightly homeless from the streets may
receive support but literacy programs that help people escape the cycle of poverty may
suffer. The charity that secures Claudia Schiffer as spokesperson is more likely to
succeed than the rival endorsed by Abe Vigoda. Is this any way to make public policy?
There are reasons we delegate policy decisions to policymakers. We would not determine the
organization of our national defense by providing tax relief to individual Americans.
Tanks, submarines or cavalry units? This choice is not left to the whim of donors because
our national defense is considered too important to be determined in such a manner. The
candidates' willingness to let nonprofits carry out social policy is, in some sense, a
sign of the political insignificance of homelessness, poverty, unemployment and similar
social problems.
Meanwhile, Gore's notion of expanded government reliance on faith-based or religious
organizations raises its own thorny problems. Many such charities mix their philanthropic
activities with a spiritual or explicitly denominational message. There is certainly
nothing wrong with this approach. Indeed, for some recipients, the spiritual message may
make the assistance more meaningful and effective. However, to base the receipt of public
assistance on a willingness to accept religious instruction obviously breaches the
separation of church and state. Gore assures the skeptical that this problem will be
prevented, but difficulties have already emerged. Haven of Rest Ministries, for example,
was accused of rejecting potential board members who were not born-again Christians.
Faith-based organizations may also miss needy recipients who do not share their religious
beliefs. For example, mosque-based medical clinics may not be well-known to non-Islamic
potential recipients. Similarly, people not affiliated with a particular church may be too
intimidated to seek out services from an organization associated with it. And some
charities may be guided by religious beliefs in screening recipients--turning away, say,
unwed mothers.
The inevitable "solutions" to such problems pose great risks to the faith-based
charities. By taking federal funds, nonprofit organizations will open themselves up to
increased oversight and bureaucracy. Government will inevitably conduct reviews and
inspections. Moreover, there will be a host of forms, documentation and administrative
burdens that will consume time and patience. Faith-based charities may be forced to
eliminate religious aspects of their programs that draw volunteers, and so make the added
money self-defeating. In addition, volunteers may not be interested in working alongside
paid employees, and lose interest. Many charities have already concluded it's not worth
it.
Charities provide an important supplement to public programs. However, there is little
evidence that they have the capacity to become the primary instrument to address poverty,
homelessness, substance abuse, unemployment and other persistent social ills. Though Gore
has advocated a partnership between government and faith-based service organizations, Bush
has stated he would "look first to faith-based organizations, charities and community
organizations" to help people in need. This would be a serious mistake.
In the early 19th century, Alexis de Tocqueville observed that Americans' willingness to
support philanthropies with time, labor and money is a distinguishing characteristic of
the United States. Happily, this trait has survived multiple generations. But viewing
civic organizations as a substitute for well-conceived public programs threatens the
character and effectiveness of charities. Though rhetorically pleasing today, ceding
popular control of social policy to overburdened nonprofits represents not progress but a
step in the wrong direction.
Copyright 1999, Los Angeles Times
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