I grew up in poverty. Single mother making minimum wage with six kids. Church picked up a lot of the slack, but there were strings:
1) when my dad got out of prison he saw us once, then got a call from his parole officer. The bishop told my mom that if she allowed us to see our dad, then he should be the one helping her out. My mom had to stop contact or starve.
2) my mom was only allowed church welfare, she could not apply for government aid. She never got the personal, professional help she needed, and is still a mess making minimum wage and relying on the church in her seventies.
3) one year my mom had some extra money after a tax return and bought a color television (in the mid nineties). This was an extravagance. She had to return it and use the money to buy groceries before getting another food order.
4) my siblings and I who lived at home all provided sub minimum wage labor to the bishop's farm, his cousin's farm, etc. Not a result of church policy, just exploitation.
5) the bishop and his stooges took a special interest in our childhood. My brother was acting up in his early teens, they came over and one of the counselors beat him with a 2x4 while the others watched. Had to set him straight. Or something.
6) we weren't allowed to play with other kids. This was carefully explained to us - because our dad was in jail for abuse, there was just too much risk of us abusing other kids. Their kids bullying us was fine though.
8) once I was old enough for a real job, I had to get one. All the money went to my mom so she could get off welfare. My grades went in the crapper.
9) after I moved out, the bishop manipulated my mom into selling him her house. He gave her a great deal - all the money she still owed on her mortgage. She lived in a trailer with my younger siblings for years afterwards.
So yes, the church provides welfare. But they give local leadership such broad authority in administering the program that it can easily be abused.
I wish that they hadn't helped my mom. If she had been allowed government assistance, we could have had some dignity growing up. She could have had a social worker help her with job placement, education, etc. She has suffered a lifetime of poverty and abuse at the hands of the church, and still believes in it.