Philanthropy Isn't the Answer to Bad Government

Declining state revenue in the face of growing needs in education, health, child welfare and infrastructure is leading many to look to philanthropy to fill these gaps. As the Houston Chronicle editorial board recently noted in urging the Houston Independent School District to accept $7.5 million from the Kinder Foundation, "Philanthropic gifts are needed in an environment where the state legislature is abdicating its constitutional responsibility."

That statement sounded an alarm for us, because philanthropy cannot, and should not, replace government spending on public goods and services. According to The Giving Institute, U.S. philanthropy hit a record-setting peak in 2015, when donations reached $373.3 billion. The federal budget for 2016 is $3.95 trillion.