APALI Reflection - Think Different About Charity
I recall when I was in UC Davis CKI, some of our decisions were misguided by what characterizes an "effective donation." Ideally, we wanted to donate to causes that had little overhead, and translated dollars to impact with high throughput. I think it was week 7? when I responded to Dan Pallota's engaging TED talk "The Way We Think about Charity is Dead Wrong." Yeah, this is definitely the other half of the story.
I think a strong network of (profitable) nonprofits, and having capable, innovative people drawn to the sector is CRITICAL to addressing economic inequality.
It speaks to my earlier reflection on an inclusive economy - in that government should enable the "things" that help people live "middle class lives," even if they don't make middle class incomes.
One of the comments in the TED talk thread was as follows:
"There has been a lot of corruption in non-profits over the year, which has tarnished many causes. I am very very selective in how and where I donate money these days. Also, quite often people give money and think they have a say in how it is spent, hence not wanting their money spent on advertisement. Perhaps non-profits need to do a better job at informing the people who donate, how the money is spent, how revenue has increased due to advertisement etc."
Couldn't agree more. A lack of oversight in religious charities and nonprofits often create a culture of mistrust around nonprofits. The belief that "profitable nonprofits are corrupt" is the real misconception. This problem has social consequences - one of which is a lack of funding, and another which deters talented people from meaningful nonprofit work.
I propose external oversight and internal transparency to improve the reputation of nonprofits.
External oversight could look like stronger audits or open data initiatives that nonprofits must comply with (in exchange for their tax-exempt status). Increased regulation doesn't necessarily turn people away from business - so I don't see it keeping people from operating nonprofits.
Internal transparency could be increased emphasis on ethics or public relations to issue reports and newsletters that inform people about the achievements of the nonprofit.
As a footnote, I want to see a greater ecosystem of support and funding for people that want to start nonprofits. The model could look similar to member-owned accelerators, or member-owned banks.
Member-owned "business" accelerator focusing on social entrepreneurship in Oakland: http://uptimabootcamp.com/the-community-network-effect
Community banking: http://beneficialstatebank.com/beneficial-banking
Global Alliance for Banking on Values: http://www.gabv.org/about-us/our-principles
For those who have another 15 min, this article makes a compelling case for systemic social impact.