Monday, April 8, 2013

Dan Pallotta: The way we think about charity is dead wrong


If you were in church yesterday you will remember Terry White beginning the conversation we have each year about stewardship, our church and our part in its finances and its future.  I thought this was a good time of year to explore how some of the money we give away can be used.  Can our donations really make a difference in the world?  Are today's non-profits equipped to change the world?

Probably all of us have given money to charity.  In fact our Church has given money to non-profits serving needs as diverse as homelessness, illiteracy, education and domestic violence.  How effective was our donation?  How do we judge the agencies and organizations that we give our hard earned dollars to support?

Activist and fundraiser Dan Pallotta calls out the double standard that drives our broken relationship to charities. Too many nonprofits, he says, are rewarded for how little they spend -- not for what they get done. Instead of equating frugality with morality, he asks us to start rewarding charities for their big goals and big accomplishments (even if that comes with big expenses). In this bold talk, he says: Let's change the way we think about changing the world.





Questions to consider while watching:

Do you use any criteria to evaluate a charity before you make a decision to donate?

The way we rate the effectiveness of a charity and its finances is different than the way we would evaluate a business.   Should this be the case?

Some would say that instead of charities changing the way they do business, individuals should change the way they donate.  People should just give more.  Is this realistic?

Is it reasonable for an executive to expect to be paid a comparable amount at a charity to what they might be paid in the corporate world? 

How should we hold charity executives accountable?

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