The Economist Blog reports on a new study of philanthropy in the late 19th and early 20th Centuries in Britain that finds economists who believe private dollars can replace public funding may have it all wrong:

In other words, rather than finding out that higher tax rates crowded out charitable giving, the study found that greater government support for the poor may well have encouraged the rich to boost their charitable donations. Taken vice versa, it also means that reducing public spending and taxation does not necessarily lead to an immediate rise in philanthropy.

There’s a reason matching gifts are often used as a fundraising scheme to generate additional donations; potential donors want others to have skin in the game.

The same might apply to public resources. If you pay your taxes you may want to view your philanthropy as an enhancement to public support for the poor.