Ok so in case you didn’t hear the restaurant idea has been canned. It so happens that the city would require building modifications to the tune of $20,000 and since I don’t have a large inheritance from a far off uncle to spend frivolously I’m going to put that idea on the shelf for a while; and pick up another one.
I’ve been thinking abou this for a while and I’ll have a little free time next semester so I think I’m going to run with it. I’ve taken a few classes and read some books on economic development and poverty (See the article http://newsnet.byu.edu/story.cfm/64611 ). It turns out poverty is a very tough thing, there are no easy answers, and economic development is a young field of scholarship (really only since WWII), but it’s not like you can just give up. What I am interested in is charitable funding. The US donates about 2.2% of GDP per year to charity, a grand total of 295 Billion dollars (1). Just think if the US was committed to an idea like tithing; that would equal over 1.2 Trillion dollars per year, or about $166/yr for each of the 6 billion people on earth (not bad considering half of us live on less than $2 a day)2. So the question for me is how do you increase charitable giving in the US?
Individual donations account for 83% of the US charitable donations (Mega gifts like what Buffet and Gates give account for just more than 1%)3. The rest of the charity is divided among government, businesses, and corporations. What surprises me about this breakdown is that more than 50% of the world’s wealth is found in corporations (4). I’m still studying up on this so perhaps this conclusion is premature but it seems like businesses and corporations could and should give more. That’s what I want to address, so here’s the rough idea of what I have in mind:
- The problem with many charities is that they depend too much on one time donations, that just doesn’t cut it, what you really need is a cash flow. Therefore we design a system in which businesses volunteer a percentage of their net revenue or profit, maybe one, two, or five percent, whatever they decide.
- There needs to be some type of justification for businesses, otherwise this is only a tax which will be passed onto the consumer. The justification I’m thinking of depends on the implicit contract every business makes with any customer (you know, I give you money and you give me some kind of service or good). Why couldn’t you include in that contract the agreement that by keeping them in business they make the community better? It’s been done before (5), it’s called 'cause marketing,' and it has worked well the few times it’s been implemented. What we do is give the business stickers or something to put on their windows which say something like “Ask us about Business Giving Back,” and then a big fat number which is the percentage they give. Inside the business you have some type of pamphlet to give out which explains what exactly Business Giving Back is, and a small sheet of paper which lists the causes the business is supporting (now that’s good PR).
- Another problem is that money gets put in the wrong places. Does it really matter how much money we throw at poverty if people still stay poor and disadvantaged? Therefore you need a group of people who can evaluate the charities and only allow the business to put money in charities which are approved. Now here in Provo you have about 50,000 budding young college students a great number of whom are studying economics, finance, marketing, international development, etc… We need a group of people who are qualified to create criteria and evaluate charities; we also need a group of people to market this to the public and companies. If we get these people together throw up a website we’d be in business (of sorts)!
Ok so this is still premature, I’m going to consult with some old professors, and I still have a lot of research to do. But what do you think? Am I off my rocker? Will this work? Is there already someone else out there doing this? I would love to have any input I can get!
7 comentarios:
I really admire your drive. I think it sounds like a really great idea, and it makes sense both business-wise and charity-wise.
Your going to have to get some really good sales people to sell it to the business'. You know my theory about capitalism breeding greed...maybe this would create a more world friendly capitalism. But it may be a hard sell. Either way, I think it's a great idea!
who are you people kidding. your off your rocker...:) just kidding. i think its a good idea but people are still people. selfish. i dont know if you could get it to work. sorry!
Dustin
Don't you know that I am graduating in ELEMENTARY EDUCATION this blog is too advanced for my vocabulary. Just joking. I think it is a good idea it will just take a lot of work. But I don't know anyone else that has the drive you do, so good luck. Ignore JESSICA she is a pessimist.
Love
Sadie
Dustin,
Got your text... left my phone in the truck. Read your blog. Interesting idea. From my experience working at a government entity, they have an annual drive where they get employees to donate to charities of their choice and there is some matching or something that goes on as well. It is a tax write off and "giving back to the community," but what are you going to do to address the overhead of the charities which is what most people have against them. United Way is the largest beneficiary of the Federal giving campaign, but they no longer support the boy scouts (one of the few real man making organizations left) because it isn't politically correct and they pay their execs big bucks. How would your charity be any different?
Your ideas for sponsoring poverty is noble. I am curious how you will flesh out the details and what your criteria for deciding when "poverty" has been defeated. Will it be when everybody has everything or when only the lazy people don't have sufficient... Will there be education involved or merely the redistribution of wealth? Will the recipients be required to give in kind? Or will this be a true charity where it is a freebie like welfare? I realize this will probably sound calloused, but I'm beginning to think that poverty is a disease that is taught to generation upon generation from poor habits from spending to priorities to morals. There are certainly exceptions; I would hope those would be the target of your operation. It goes back to that whole give a man a fish vs teach a man to fish.
I agree with your observation of the wealth of corporations. Corporate America funds politicians who pass bills that "enhance your life," (their bank accounts). Political lobbyists don't work for free and don't make big bucks from citizen causes. Special interests funded by corporations or groups funded by them do all that.
So that is all I'll spew for now. I think you are on to something. The idea sounds appealing, but the real clincher will be in its execution. I would advise developing this idea and scrutinizing it on a less public forum so your intellectual efforts don't get scooped by others.
Good blog... catch you later.
I was plesently surprised when I opened your blog and saw a new post. Which is a good thing because I was getting ready to give you a earful about not writing. I am sure that sounds really scary to you. It is a interesting idea about your charity. I hope you could get it to work and hopefully keep your overhead costs down. That is a big problem with most charities that a large percentage of the money donated goes to administrative cost. I would love to write more but the baby is crying.
no
and
http://www.lds.org/humanitarianservices/0,19749,6208,00.html
I think you have a good idea a-brewing, Dustin, but I agree it will take a lot of work and even more money. It's a great idea to get some businesses involved so that they can feel good and look good. I know that as a consumer, I feel good and more motivated when a company says that they're donating a percentage of my purchase to a charity. I think you would have to build up your name, though, so that people would recognize it as a legitimate charity. You might also want to consider giving a hefty gift basket to the companies you want to enlist/keep on board (very Michael Scott-esque). ;) In the mean time you can consistently donate money and encourage others to donate to the LDS Humanitarian Aid fund, where you know that 100% of the $ is going to the cause.
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