At a time in Colorado when government seeks to tax more, purportedly for the common good, a report last week by the Common Sense Institute speaks to the state’s strides in philanthropy — in some key respects, the opposite of government funding.

Charitable giving by Coloradans is continuing to prove a champion for the Centennial State. Common Sense crunched the numbers.

“(It) would be virtually impossible for Colorado communities to function and thrive without private giving,” state the reports authors. “Health and education systems would weaken, poverty rates would rise, innovation would diminish, and the fabric that ties together people of differing views and backgrounds would fray.”

Common Sense conducted its research by attempting to quantify what level of taxation would be necessary to replace the state’s private giving. The institute estimates that in 2025, Coloradans gave $6.1 billion to charity — an amount equal to about 61% of all individual income tax revenue collected by the state in the 12 months of fiscal year 2024-25.

Replacing that lost giving would require raising Colorado’s flat income tax rate by more than half from 4.40% to 7.09%. And that, of course, assumes the unlikely: government could replace those services at the same cost with equal efficiency.

How about volunteer hours on behalf of charity compared with compensated work by the state government? The Common Sense reports says the estimated 110 million volunteer hours each year amounts to 36% of the annual hours worked by the entire state government workforce.

Common Sense notes Colorado is the second-best state in the union when it comes to charity, gauged by the percentage of citizens (62%) who donated philanthropically in a calendar year. Overall, when combining the four U.S. Census-tracked measures of philanthropic behavior — charitable giving, informal helping, formal volunteering and talking with neighbors — Colorado ranks third nationally.

CSI puts the finger on the pulse of the push and pull between charity and taxation: Charitable giving responds to incentives. Tax policy affects how much private giving occurs, with more government spending decreasing private donations and nonprofit fundraising.

“In practice,” the report reads, “this means policymakers should view private giving as something government decisions can either encourage or erode.”

With eyes on Colorado’s next 150 years, our state lawmakers would be wise to channel our citizens’ selfless spirit, and through reduced taxation empower people to have autonomy with their wallets. When Coloradans read the report and see how research shows 70% of government assistance is spent to uphold bureaucracies while only 30% actually goes to helping the poor, it probably doesn’t come as a shock. It reflects the reality they see around them.

Some may be surprised at the extent to which private charities are more effective — giving more than 70% of their proceeds to the poor. But it only makes sense. Human nature, lived experience and basic psychology tell us customized, inventive, individualized and humane solutions via charity outpace government’s heavy-handed approach every time.