Where I am, a poor UK city, the Christian Churches provide a lot of services to the poor (homeless shelters, food banks, pensioners meals, friendship clubs, pregnancy counselling, family counselling, pastoral care) often with referral by front line council workers. Most of those services are free at the point of need (only family counselling is charged for IIRC) but couldn't operate on those budgets as council services -- largely because they rely on donations of buildings from the Churches, and donation of time from volunteers. The council has to rent, and has to pay at least minimum wage.
So, in a way these essential community services work outside the state machine doing something that in a socialist setting government is expected to do.
I can see this works inasmuch as those services exist, when they seemingly wouldn't otherwise, but the payment for those services isn't as fairly distributed as if it were acquired by taxation IMO. Also, in theory on a state level you save optimise service provision to save administration and logistics costs; whilst local piecemeal approaches can be relatively expensive ... but then in practice government seems to add layers of bureaucracy and expensive management ...
Any further thoughts?