Not-for-profits and the civil society that supports them play an important role in changing the world. Charitable giving has often been criticized, but in his TED Talk, Dan Pallotta explains how the way we think about charity is undermining the causes themselves, preventing significant change from happening. In our increasingly market-driven world, the not-for-profit (NFP) sector targets those at the bottom who are inevitably left behind; it is there to support those things that one cannot monetize. However, NFPs seem to be discriminated against in our corporate world, hindering their growth and giving potential. Presently, and for the past 30 years or so, charitable giving in the United States amounted to 2% of GDP, or about $300 billion every year. | |
Morality is often erroneously equated with frugality, assuming that it is best for NFPs to put as much of their money as possible into the actual programs and services, with minimal overhead costs. In reality, this mentality diverts focus from the actual change that charities are trying to make. Dan argues that we need to change the way we think about changing the world; we need generosity of thought, not of money. By putting more money into overhead costs, charities can invest in the growth of their organization, and focus particular attention on the goals and the resources necessary to reach these goals. Growth of the ideas then allows more money to be put towards accomplishing them.
It is evident that the role of charities is important in reaching those who are not targeted or who are further marginalized with larger-scale national or international development policies, but in order to do this NFP organizations need to ensure they have significant funding and support, and an established place within the greater social and economic framework, in order to grow in a way that allows them to campaign for the very causes they set out to champion. Like Dan says, if we change the way we think about change, by focusing on creating a tribe invested in and dedicated to a vision, charitable giving can be more effective.
This leads me to a question about the not-for-profit world and the role of civil society: are social movements about asking for change, or about making change themselves?
Having a vision is crucial. But I would argue that the difference between successful tribes or social movements and those that are less effective at creating change is that one has a concrete way of achieving their vision. And this is what allows charities or other groups in the not-for-profit world to make the change themselves. Simply asking others for change only goes so far; charities and social movements need to strive to make change themselves in order to be more effective.
It is evident that the role of charities is important in reaching those who are not targeted or who are further marginalized with larger-scale national or international development policies, but in order to do this NFP organizations need to ensure they have significant funding and support, and an established place within the greater social and economic framework, in order to grow in a way that allows them to campaign for the very causes they set out to champion. Like Dan says, if we change the way we think about change, by focusing on creating a tribe invested in and dedicated to a vision, charitable giving can be more effective.
This leads me to a question about the not-for-profit world and the role of civil society: are social movements about asking for change, or about making change themselves?
Having a vision is crucial. But I would argue that the difference between successful tribes or social movements and those that are less effective at creating change is that one has a concrete way of achieving their vision. And this is what allows charities or other groups in the not-for-profit world to make the change themselves. Simply asking others for change only goes so far; charities and social movements need to strive to make change themselves in order to be more effective.