Why do you always need a "best" way? German charity is a mixture based on three parts: government, churches (all religions), private funding. But let me play the advocatus diaboli:
I personally believe governmental charity to be fine because the government cannot differentiate. A governmental charity organisation cannot restrict itself to certain religious believes (like e.g. renting charity flats only to catholics), social groups or heritages - it has to be neutral and open for every one.
Churches and private fundings tend to be less neutral. Additionally governmental money is guaranteed - but private fundings can simply run away (Hey, you are not as loyal to me as I hoped, so I will stop funding your organization. Bad luck!)
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He deliberately chose charities that would be "in your face" challenges to the other business-people, tycoons, and rich socialites of his day.
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And thats exactly why private funding is not always the best solution - charity is no (and should never become) a race. It should be based on reasoning and need, not "but I can do better" (because then some parts will be overrepresented and others will fall over the edge...)
Apart from all of this: One reason why nations / governments exist is simply because they should look after their people - all their people. It's not about "same for all" (before anybody raises the old communism stick), it's about "enough for all"
