I found the talk above to be thoroughly edifying. I always had my doubts about charities and the work that they actually do with all the money they receive. By no means would I label myself a charitable person. Hell, I don’t even like sharing. I dare you to try and ask me for a taste of my ice cream.
It’s not that I don’t trust charities because a lot of them do great work and bring much needed attention to important causes. Instead, I never witnessed charities accomplishing big things with the substantial amount of money that was being donated to them every year from around the world. This doesn’t hold true for all charities, but this video shows that my doubts were completely legitimate…to an extent.
I was in the dark about the very real disconnect between the social reality we expect charities to bring about and the economic reality that charities have to contend with.
Donors need to start moving away from the idea of chastising charities from using the money they donate towards furthering the charities goals. Expecting accomplishments is perfectly fine, but all of that requires funding as well. Some people would argue that it is impossible to make a non-profit organization function as profit producing entity. I would scoff at that because I have personally been invested in a project with a non-profit to do exactly that. More importantly, its success is proof that it can work.
It’s important to realize that charities function in the same market as other companies. Other companies are just more powerful and better equipped to spend their money…because we allow it.
It’s not outrageous for a charity to go after consumer dollars. What is wrong with a self-sustaining charity investing in itself so that it can grow and, hopefully in the long-run, move towards actually solving real social problems? Social problems around the world are growing in scale. Unfortunately, the organisations that have taken up arms these issues are forced by us to limit their scale and innovation. As a recent MBA this is something I find intriguing. Why do we think this way? Dan Pallotta discusses a paradox bound in religious thinking. That might have been true in society centuries ago, but should it be true now?