Tens of thousands of private charities help people every day, and they do so efficiently and effectively when compared to government efforts. Most impressively, they do so by soliciting the voluntary support of the American people. Four-fifths of that amount was given directly by individuals. Those numbers reveal the extraordinary generosity of the American people. There is, moreover, no reason why these figures could not grow even larger.
Experience shows that the level of giving closely tracks the business cycle.
This suggests that the charitable sector is dependent on the personal financial calculations of families. The tax deduction for charitable giving doesn't subsidize contributions. It removes the tax penalty for giving money away instead of saving the money or spending it on personal matters. It is truly a sacrifice for anyone to give to charity. If there are any ways to make such gifts even less punishing for families, policy makers would be wise to pursue them.