Anyone who has examined the history of religious charities and social welfare networks, until very recently (when they began to be largely crowded out by large scale federal intervention) would counter the claims made in this article. If one, for example, were to read Dr. Eamon Duffy's book, "The Stripping of the Altars", for example, you would discover that, prior to Henry VIII nationalization of church lands and basically stripping the chantries of all wealth, that England had an advanced, independent, private, and relatively free and easy access social welfare network. Whether one agrees with the concept or not, for example, the chantry priests, who were responsible for saying a mass for the dead every day (to help get people out of purgatory sooner), were also responsible for feeding indigents, and teaching children for free. Over centuries, regular people, middle class burghers, rich merchants, and nobles and kings, upon their death would grant huge sums to these institutions upon the condition that they did good works in their names.
One can also think of the more modern incarnations of the mutual aid societies in recent times:
http://mises.org/daily/5388
http://mises.org/journals/qjae/pdf/qjae4_4_6.pdf
But, I think the overarching issue that is being ignored, is the monetary issue. If we had sound money, and a sound banking system, it would reduce the overall poverty rate, and any need for massive federal welfare institutions would be disolved. This arguments is another side of the issue of the crowding out effect, that is, it is easy for many persons to understand that the larger the government spending the less real wealth we have in society due to scarce resources being plucked up (with the aid of an essential unjust monetary system that enables to government and large corporations and banks that are well connected) by the federal (or state) authorities. If the federal government, and their hinchmen, can spend the money prior to its general devaluation being felt by the rest of society, they have essentially done two things:
1. They have bought more material with essentially less valued money, and thus unjust seizing more resources than they should, and
2. They have taking a tremendous share of the wealth of society and engaged it in essentially non-productive uses (like large military budgets, invasions, etc).
If people are truly concerned about the welfare of poor persons then they need to target the monetary issue, and establish sound money, and prevent the federal authorities from sucking up the resources of the people.
One more point. I am not a Mormon, but, I have know Mormons in my life, and they do seem to have a very well structured church welfare society; I am told similar things about the Amish, and a few other groups. This, sadly, is not so of the majority of people currently, but, it does demonstrate that 'private' charities, or better, mutual aid societies are possible and effective.