In absolute numbers, the U.S. gives by far the most money in Official Development Assistance (ODA) – in 2008 it was nearly twice that of the next biggest donor, Germany. Compared to how much money we have, however, the U.S. actually gives the least of any developed country. Does this mean Americans are the least generous people of all the nations of the industrialized world? Hardly. ODA is just foreign aid give by governments under the watch of the OECD (Organization for Economic Co-operation and Development). It doesn’t take into account private contributions from individuals, foundations, and other institutions.

American people, foundations, and institutions send more money and aid abroad than private citizens and organizations in any other developed country in the world by far. Why? It might be easier to understand by examining why people in other countries give less. In Europe – where most of our fellow developed countries are located – there are tons of big social programs based on the philosophy that the government should take care of the poor and other issues that Americans generally think should be taken care of by private individuals, religious organizations, and stuff like that. In order to pay for these big social programs, these countries have equally big taxes. Even more so, the U.S. gives tax breaks to people who give to charity – almost paying you to give money away.

Living under the assumption that the government should pay for all social ills, and having less money to give away because of higher taxes isn’t a recipe for huge private donations.

Tags: charity, government spending, international aid, official development assistance, philanthropy, tax deductions