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Philanthropy: The Effect on Poverty

October 1, 2014 by James Hickey, PhD

james hickey phdEach year the Census releases information about the state of poverty in the United States. When analyzing this data, it has not fluctuated much from the 1970s and leaves onlookers with the same questions year after year. If philanthropy is designed to assist those in need, why is poverty still such an issue?

“Generosity” Covers Only a Piece of the Problem

People who contribute to charities may feel they are giving freely. However, the actual financial needs to eradicate poverty are gargantuan. Today, 44 million Americans are impoverished. According to Giving USA, $335 billion were acquired through donations. Yet, if solely distributed to those in need, families would still remain in poverty. This issue requires much more to resolve.

Poor is Not a Priority

In the midst of fighting climate change and curing cancer, individuals without money or necessities fall to the bottom of the priority list. There is a trend that those perceived as wealthy rather combat the right to choose and fund college campuses. While not a generalization, the impact for change in poverty is not enough.

Face to Face Services are a Minimal Solution

Those who directly support the tools necessary to overcome poverty may be distributing funds unwisely. History has shown that the most effective method to rise above poverty lies in government programming. Structures such as Social Security, Medicaid, unemployment, food stamps and more keep millions of people and families above the poverty line.

When Graduation Rates Improve, Poverty Doesn’t

One way philanthropists show they care about fixing poverty is through ongoing donations to education in economically troubled areas. Some great changes that took place included the placement of strong teachers and better college prep. However, when students return home the same issues exist.

Philanthropy is a great tool that benefits many causes. However, it is important to assess and challenge the benefits generated by this structure. Poverty is an area that needs more than small gifts from many giving individuals. The further enhancement of pre-existing government programs could be the solution, or perhaps greater brainstorming sessions should take place. For more information, visit Inside Philanthropy here: http://www.insidephilanthropy.com/home/2014/9/30/7-reasons-why-philanthropy-hasnt-made-much-dent-in-us-povert.html#

Filed Under: Philanthropy - James Hickey, PhD Tagged With: james hickey phd, philanthropy, poverty

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