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Many years ago, R. McKenzie (1981) set out to expose the hidden assumptions underlying the orthodox case for the collectivization of charity as put forward by Milton Friedman (1962). In doing so, he argued that collectivization may reduce the degree of transfers and this will necessarily make the poor worse off. The author demonstrates that McKenzie's analysis contains hidden assumptions of its own and that, even if there is a reduction in the level of transfers, it does not necessarily follow that this will result in a Pareto inferior redistribution. Copyright 1999 by Kluwer Academic Publishers