There was very little to be crowded out. When funding was opt-in, the result was a vanity safety net far too weak for any serious problems. That's why Dickens portrayed such a hellhole. Why communities organized around private charity declared defeat and posted "OKIES MOVE ON" signs during the Great Depression (which is what led to creating a welfare state that actually kind of met the needs). Why even churches need government funds to keep their own food banks open. The problem is bigger than the number of volunteers paying more than their share.