This paper will attempt to defend the thesis that it is impossible to understand the proper role of private philanthropy in a free and democratic society without examining certain fundamental questions about the proper roles of the state and about the rights and obligations of owners of private property. It will defend that thesis by presenting arguments for four subordinate theses: (a) there are historical and philosophical reasons for being skeptical about the role of private philanthropy in a free and democratic state; (b) these reasons can be met by certain familiar responses, but these responses are not fully satisfactory; (c) certain radical libertarian views, and more moderate versions of those views, would provide a basis for an alternative understanding of the role of private philanthropy in a free and democratic state; (d) whether or not one accepts those views, one can also better understand that role if one adopts a view of the state which emphasizes its role in the promotion of the virtues.

(1) Historical and Philosophical Doubts

The skeptical challenge to the claim that there is an important role for private philanthropy in a free and democratic state can be put very simply. It is the challenge that the emergence of strong but democratic states, with the concurrent emergence of a proper understanding of the extensive nature of legitimate state functions, has undercut the need for private philanthropy and its corresponding favorable tax treatment. It is the further claim that these developments, both historical and conceptual, have left private philanthropy with no significant role.