Charities have been around for over a century, tackling everything from poverty to healthcare. Think of New York’s Lower East Side, where groups like University Settlement and Henry Street Settlement have been helping people for generations. They’ve done incredible work — from opening public baths to founding the N.A.A.C.P. But here’s the kicker: despite their efforts, poverty in the area has only gotten worse. In fact, Manhattan now has the most unequal income distribution in the U.S.

This isn’t just a New York problem. Big names like Bill Gates, Warren Buffett, and Michael Bloomberg have poured billions into causes like poverty reduction, environmental protection, and health improvements. Corporations have upped their giving too. Yet, income inequality is at its highest since before the Great Depression, and poverty remains a stubborn issue. So, what’s going on?

The truth is, the math of philanthropy just doesn’t add up. Charities are often seen as stepping in where the government falls short — helping the poor, the environment, and the marginalized. But that’s only half the story. In reality, many charities exist to fix problems created by businesses in the first place.

Here’s the thing: corporations externalize trillions in costs to society and the planet every year. Nonprofits step in to address these issues, but they only have a fraction of the resources needed to make a real impact. It’s like donating a penny to fix a problem your business created to earn a dollar. And that’s why, no matter how much money flows into charities, the needle on poverty and inequality barely moves.

Philanthropy isn’t the villain here, but it’s not the hero we think it is either. To truly solve these problems, we need to rethink how businesses operate and how society holds them accountable. Otherwise, we’re just spinning our wheels.