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The Charitable-Industrial Complex

91 pointsby tedsuoalmost 12 years ago

9 comments

andrewljohnsonalmost 12 years ago
The conclusion of the article presents a false choice, and is flabbergastingly short-sighted:<p>&quot;Is progress really Wi-Fi on every street corner? No. It’s when no 13-year-old girl on the planet gets sold for sex.&quot;<p>First, wifi on every corner is progress. Second, you might need wifi on every corner to prevent the sex slavery. Third, even if you don&#x27;t need the wifi, you can have both the arguable utility of wifi for the poor, and stop the sex slavery.<p>I don&#x27;t understand how anyone can fail to see the spread of the internet as a big step in the spread of knowledge, fail to marvel at our modern day printing press and all the good it has done. &quot;Internet everywhere&quot; seems like a pretty good philanthropic strategy to me.
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banealmost 12 years ago
blocked by paywall<p>One thing I&#x27;ve learned from many so-called &quot;philanthropists&quot; is that hosting charity events can be a great status and money making&#x2F;saving opportunity for those in the business of it. If you&#x27;ve ever watched a &quot;real housewive of ...&quot; episode, those wacky ladies are <i>constantly</i> hosting charity events and provide a pretty good example of how this works:<p>1) Get a really good tax accountant and lawyer.<p>2) Establish a charity (in the U.S. they&#x27;re called 501(c)(3) organizations and have various laws about how they operate. Dedicate it to &quot;Cancer Research&quot; or &quot;Helping Orphans&quot; or whatever.<p>3) Set yourself up as the head of the charity, give yourself a respectable, but not over the top salary. This is the &quot;organizational overhead&quot; you often hear about.<p>4) Recruit a bunch of free volunteers concerned about your cause and host a charity event. Well done theme parties can bring in the most money. Include a donation envelope in case people can&#x27;t come but still want to &quot;support your cause&quot;.<p>5) Collect money. Make sure you remind everybody that their charitable donations are tax deductions! This will keep them coming. Guilt your friends into coming as well. If you get popular in the charity circuit you can even start charging a &quot;cover charge for the even expenses, recommended donation is...$xxx&quot; or &quot;$xxx per plate&quot; if it&#x27;s a dinner.<p>6) Subtract misc expenses for room rental, supplies, cheap gifts for volunteers etc.<p>7) Take the donated money, subtract a percentage for &quot;organizational overhead&quot;<p>8) Donate the remainder to your cause or if you have time, spend the money on &quot;donation events&quot; where you get press for doing some kind of community service (advertising).<p>9) Get your charity to spend money on office equipment, cars, travel expenses etc. Deduct as business expenses.<p>10) Any left over money is a bonus to you for a job well done (can&#x27;t show a profit!)<p>11) rinse and repeat<p>There actually <i>are</i> good charities out there that do good work, but separating them from this kind of self-service is hard to do.
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jmillikinalmost 12 years ago
<p><pre><code> &gt; It’s time for a new operating system. Not a 2.0 or a &gt; 3.0, but something built from the ground up. New code. </code></pre> The author&#x27;s metaphor here assumes a world where a massively complex system, which is basically working but has some problems, can be &quot;fixed&quot; via replacement by a new system designed from scratch.<p>In all of human history, how many times has this ever actually worked?<p>Continuing the comparison to operating systems, the three most popular OSes of today (Windows, Mac OS, Linux[1]) are built on foundations dating back to the dawn of microcomputers. The intervening forty-odd years have seen hundreds of competitors invented and abandoned, while the last scion of CP&#x2F;M holds its ground and the descendants of UNIX consume the world.<p>Or going back to the world of international politics, what is the half-life of a newly established form of government? All of our philosophy, reason, war, and technological advancement have brought us nothing but small improvements to systems of democracy founded thousands of years ago in Greece and Rome.<p>The NSA scandal and ongoing derailment of the Arab Spring show that we still don&#x27;t know how to even <i>control</i> our own governments, much less design sweeping improvements to them.<p>[1] I&#x27;m counting Android as Linux despite not being GNU&#x2F;Linux, because it runs the Linux kernel.<p>---<p>On the topic of charity:<p>One might think of charity as a medication, given to a sick society. It is effective in some cases, ineffective in others, and sometimes outright harmful[2]. Objecting to charity in general is equivalent to advocating against antibiotics.<p>Charity can&#x27;t solve massive structural problems in a society, but when properly focused it can do things that malfunctioning governments aren&#x27;t capable of. Just giving twenty dollars to everyone in Pakistan will make their own lives temporarily better, but spending twenty dollars per capita on Polio eradication will improve the lives of their children, and grandchildren, and so on until the end of time.<p>[2] See: the near-annihilation of Africa&#x27;s textile industry due to donations of second-hand clothing.
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leotalmost 12 years ago
Were the wealthy truly interested in promoting greater social good, they would put their efforts into reforming tax systems and global finance in order to help make the world more fair and just.<p>Replacing income taxation with wealth taxation (plus a value-added tax), e.g., could simplify and make far more equitable the system we operate within, while greatly improving incentives and aligning them with our society&#x27;s openly professed values. For some reason, there are surprisingly few think tanks and lobbying groups advocating for such a change.<p>[Edit: I&#x27;m kind of amazed to see this getting down-voted. I would love to hear from those who think this comment isn&#x27;t helpful.]
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cotegaalmost 12 years ago
I hope this doesn&#x27;t sound like preaching.<p>In almost every discussion about charities and non-profits the main discussion seems to revolve around the money we donate and how efficiently charities use these donations. One thing that I find people forgetting is how valuable their time can be to non-profits and how that often is way more valuable than donations. Each one of you on HN certainly has a skill that would be valuable to charities (especially small ones) whether that be technical help or in taking your skills in finding customers for your startup and applying those skills to fundraising for the non-profits. You would be surprised at how limited many non-profits are in these areas and how even an hour here and there each month can make a huge impact.<p>I realize many of you just don&#x27;t have the time and I am not suggesting this is for everyone. However, if you do, try sending a quick email to the director of a non-profit you find interesting and you might be surprised at how happy they are to hear from you.
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raldialmost 12 years ago
Could someone rephrase this piece in the form of one or more &quot;Instead of __________, we should be doing ________&quot; statements?
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krrrhalmost 12 years ago
There seems to be a lot of concern in this discussion about charities that have too much overhead, or people who work for charities that pull in salaries competitive with for-profit. This econtalk with Dan Pallotta presents an interesting counter-narrative. He says the non-profit sector is held back by attitudes that discourage competing for top talent, risk-taking, and innovation. If any group would be sympathetic to these arguments it might be HN readers, but I suspect that these biases are pretty persistent.<p><a href="http://www.econtalk.org/archives/2013/06/pallotta_on_cha.html" rel="nofollow">http:&#x2F;&#x2F;www.econtalk.org&#x2F;archives&#x2F;2013&#x2F;06&#x2F;pallotta_on_cha.htm...</a>
tocommentalmost 12 years ago
I came across this a while ago <a href="http://www.givewell.org/" rel="nofollow">http:&#x2F;&#x2F;www.givewell.org&#x2F;</a><p>It looked like a way to find more effective charities. What do you guys think?
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DanielBMarkhamalmost 12 years ago
I&#x27;m voting this up because it seems a heartfelt reaction against figuring out that charitable giving is its own scam -- a scam by well-meaning people all out to do good in the world, but a scam. By that I mean that there is no feedback loop in place to assure the donors that they&#x27;re wrong. Every deal is one to save the day. Every idea is some great idea from one place transplanted somewhere else. There&#x27;s a business in assembling ideas into attractive memes and then getting rich people to make themselves feel better by paying for them. A very big business. So hats off to Buffett for pointing it out. I especially like the term “conscience laundering”<p>Having said that, I call bullshit here. While he&#x27;s done a bit of fumbling around at what his end of the problem looks like, and he&#x27;s certainly correct that preventing slavery beats the shit out of having free wi-fi, I&#x27;m not feeling he has any better idea of what the hell he&#x27;s talking about than the folks peddling the latest charitable cause. And he admits as much. So as a plea for the system being broken, count me in. As any indication of way forward? It&#x27;s not in the essay.<p>I also want to point out that everybody seems to understand that you make money in your life one way, you may find value in a completely different way. But people giving money, most of which are rich, seem to be completely detached from this concept. Working in a factory for two bucks a day and not starving, while watching your family grow up and being involved in some religious or civic group might be a freaking ton better than not being &quot;exploited&quot; We cut ourselves slack for finding value in things other than money, but we do not allow the same privilege to others. Because charities run on dollars, we tend to subconsciously value their lives in dollars as well. Bad premise.<p>Since the solution space is so thin, I&#x27;ll take a flyer on what he <i>might</i> like to see. As opposed to the latest in charitable wizardry, my ideas and five bucks will get you a cup of coffee.<p>Societies evolve by the flow of information and goods contributing to an open market. Information flow to people? Education. Unrestricted goods flowing to an informed buyer? A win for all parties. Innovation and solutions formed by cross-pollinating folks with radically different backgrounds and knowledge? Another win for everybody. It&#x27;s all information and trades. Bad societies control information and trade. Good societies let a thousand flowers bloom and grow by productive creative destruction. So far, many folks are on-board with this. <i>But what we continue to forget is that forms of society itself is just another structure that can benefit from these same principles</i>.<p>My position is that the problem here lies in our hidden assumptions. Every charitable intervention has a bunch of a priori assumptions made about what would work or wouldn&#x27;t. As Buffett said, many times it&#x27;s just playing MadLibs with good ideas. This is the wrong way to look at the problem, and will continue to lead to suboptimal solutions.<p>If you&#x27;re looking to do something radical, encourage governmental units to become much smaller. Instead of having one third-world country rule tens of millions over a large area, replace it with a hundred smaller governments with much less land area. Create zones where completely new ways of getting along can be tried -- a new form of socialism, radical objectivism, whatever. Instead of arrogantly thinking we know the answer to the problems and they must fit into one of our predefined categories and work inside existing societal structures, work on giving people ownership and control over trying zillions of their own ideas, and let&#x27;s all watch and see what works for them. In this way, we actually <i>create</i> a huge pool of new information that didn&#x27;t exist before about what works or doesn&#x27;t work in various circumstances instead of just rehashing theory. This information can be shared and will have value to many millions more. And then we can all move forward.<p>Our problem is that we insist on taking highly-complex and intricately-detailed problems and then solving them by banging on them with feel-good hammers of convenient and easily-understood slogans from our own life experiences.
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