[eadmund]

I don’t believe that ‘capitalism’ is a good explanation for the behaviour of a charitable organisation with no shareholders.

An issue with private funding for charitable projects is, as you note, appeals to the emotions of private donors.

An issue with the public funding for charitable projects you propose is appeals to the emotions of both legislators and executive agents. Another issue is corruption: a project which can figure out how to both receive money from taxes and influence elections can ultimately write its own meal ticket.