Thanks for pointing that out! I should have read more carefully. I might still be reading you wrong here (if so, sorry) but it feels like this doesn’t directly engage with the point.
The paragraph argues that since foundations are currently sanctioned by governments, Reich and other critics ought to respect that decision because it’s democratic. I think this is a strawman of their argument; you’re assuming an abstract notion of ‘democraticness’ that infuses everything the government does, whereas the critics don’t care whether it’s a democratic government that’s making a bad decision―it’s still a bad decision that leaves individuals with outsized power.
(And note that you can simultaneously believe that government makes some bad legislative decisions and that we would be better off by substituting private spending with gov spending).
I agree with the general point that large foundations are a force for good on net. But I also feel like you haven’t engaged with the main point of critics like Rob Reich, which (as I understand it) is that philanthropic foundations are a powerful lever that wealthy people can use to build influence―a lever that can be weakened by regulating foundations.
To defend (not that they’re in need of much defending) billionaire philanthropy I think you need to argue that foundations provide enough value that having them is worth empowering the wealthy. (fwiw I think this is very likely true)