In March, 2013, Ted Talks were held at Long Beach
and one of the speakers was Dan Pallotta.
He shared his thought that the way we have been taught to think about
non-profits undermines charity and “the causes we love and our profound
yearning to change the world.” Pallotta
who has raised millions for breast cancer and AIDS research is considered by
many as an expert. He states that there
are two rule books in play, one for non-profits and the other for
for-profits. He points out his belief
that this started with the Puritans who were aggressive capitalists who were
taught to feel badly about the money they made by their Calvinist beliefs. So to do penance for making money, charity
became a “place for penance” and since you can’t make money when you’re doing
penance for making money, the entire notion that all of the donated money
should go for the cause instead of profit (more recently translated into
overhead), was born.
He points out that in his opinion non-profits
suffer because they cannot offer adequate compensation to attract the brightest
and the best in business to be part of the team or lead the way; they are
unable to advertise and market; they are unable to take risks on new revenue
generating ideas; they don’t have the time needed to ensure a return on
investment; and finally they don’t have the ability to attract risk capital
because there is no promise of profit.
Pallotta advocates for looking at philanthropy in
a different way if we plan to tackle social causes related to health and human
services in a way that will make a difference.
He believes that we can make the philanthropy “pie” bigger is we stop
confusing morality with frugality. His
full Ted Talk can be viewed at:
Dan Pallotta: "The way we think about charity is dead wrong"
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keep our overhead low and work as much as we can with a volunteer
workforce. We are committed to our mission
to educate afterschool professionals to be positive role models and mentors for
youth, and we humbly share that we can’t do this without you. We believe that we can change the world, one
child, mentored by a positive role model at a time. Join with us to brighten our future and
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