Christmas is the season for giving. Just look around to observe the charitable actions not only during the holidays, but also throughout the year. 

The American people enjoy a reputation around the world as a charitable citizenry. Whatever the need — from accidents to disasters to homelessness — Americans generously send money, food and supplies to help at home and abroad.

There’s concern, though, the trend might not continue. According to one estimate, charitable giving dropped more than $15 billion in 2018, the first decline since the Great Recession. There appear to be several reasons for the decrease:

The federal charitable giving incentive was significantly lowered under the 2017 federal tax law doubling the standard deduction and reducing the number of people itemizing deductions,

 Welfare programs might crowd out private donations. Julia Bredtmann wrote in a column: “If people are only concerned with the total amount of welfare provided, they will treat government spending as a substitute for their own donations.” 

With inflation soaring and taxes expected to increase, Americans will have fewer discretionary dollars to give to charitable causes.

Why is charitable giving important? According to the Almanac for American Philanthropy, philanthropy isn’t interchangeable with government spending. Howard Husock was quoted in an article in Forbes: “The more individualized attention a problem calls for, the less well-suited government is to dealing with it and the more likely that independent charitably supported groups can help.” 

Because philanthropy responds quicker than government, it allows for an individually tailored approach adapted to changing conditions. Charitable giving addresses the problem without miles of bureaucratic red tape. The results of one nationwide survey found 73 percent of adults considered charities the most cost-effective way to promote social good. 

Charitable giving is a voluntary action in a targeted approach to helping others. The result is recipients are grateful and recognize the assistance was given voluntarily. Donors enjoy a positive feeling knowing their gifts help the individuals or organizations of their choice. 

Government welfare spending isn’t charity. Government spends money taken from its citizens through taxation, then arbitrarily designates classes of people and organizations to receive these funds. The beneficiaries of government handouts develop an attitude of entitlement. Since government is a behemoth of assorted bureaucracies, the recipients of government largess fail to recognize the money given to them is first confiscated from others. 

The Association of Certified Fraud Examiners reported: “Within the U.S. federal government programs, fraud, waste and abuse are widespread, largely unmeasured and a growing drain on taxpayers and citizens, reducing the effectiveness of government services.” Problems are better solved at the lowest level. 

Christmas is a season of giving. Giving to charities addressing social needs is more efficient and effective than government programs.