@asmonet, it’s a long explanation, but I’ll try to summarize it here.
Charity in general exists because some people have a desire to help others. Think of all those church groups, or rescue groups after natural disasters, or food banks, etc. These don’t exist because of legislation, they exist because people have the desire to help others, and the people who need help have the desire to seek that help out. America is, after all, the biggest contributes to private charity, coming close to $300 billion in 2006.
Welfare, on the other hand, exists because of laws. It takes our tax money unwillingly and distributes it to other people, and we have no control over where this money goes. The current setup of welfare does not encourage anyone to get off of welfare. As well, the system is ripe for abuse, and as with pretty much any government agency, there are a lot of people who have figured out a way to scam the system.
Let’s say welfare ended tomorrow. Yes, it would be hard for the people on welfare, but they would start making efforts to remedy their situation, such as going to a food bank, going to church support groups, or finding a job. Those that chose to not remedy their situation would likely die. This is the survival of the fittest, which in my mind is the best approach vector for creating a strong and resilient community. I mean, why exactly should society support someone who isn’t willing to give back to society? On the other side of things, people now have an extra few hundred dollars or more because it’s not being removed by taxes. Some people would choose to donate money to the churches and other organizations, and would receive a tax deduction for doing so. In fact, people might be more likely to donate to a local community support group, as they can see and interact with the people they are helping, and it may resound a bit more deeply in their heart. Sure, some people would choose to save that money and spend it on themselves, but that is their prerogative as they earned that money and thus are free to do whatever they want with it.
Some, but not all, of people on welfare are able-bodied people who choose to not find a job. Why, then, should I, a person who has worked hard and found a job, be forced to subsidize the lifestyle of a person who chooses not to? And like I’ve said above, people who are forced into poverty and welfare are generally aided by local organizations, provided the person is willing to seek out that help. But as it stands now, there is no motivation to do this, because that welfare check will come in each month like clockwork.
This is a pretty strong Libertarian viewpoint, so if you’re interested in more reading about the subject, you’ll find more information and elaboration on libertarian websites. Here is one link from the Libertarian Party of the US that goes into more detail about this issue. Here is another article that delves into the issue.