This talk on how we relate to charities really struck a nerve. I was unpleasantly surprised that I held every one of the misconceptions Dan Pallotta calls us out on.
Honestly, watching this changed the way I now think about donating and who I would donate to.
Watch it and decide for yourself.
Afterword: This talk was produced in 2013.
I spoke to a friend who’s a senior manager with one of Australia’s largest providers of charity services. This was her response.
“In the Australian sector you’ll find organisations who nominate to be either a “Charity”, “Non-profit” or “Not for profit “. There is a big difference between the 3.
For example, our organisation started as a charity where we relied 100% on donations.
As we began to tender for big contracts and government tenders, the money made on those was channelled 100% back into the individual business units within the company that provided that particular service. It then became a Non Profit.
In the last 5 years, we have become a “not for profit”. We actively tender for massive contracts that actively make a profit. This profit is no longer automatically channelled back in to our services but goes into a collective pool of funding with which the company builds infrastructure which allows it to win more business.
The difference is we now have a vision and only tender for contracts which are in line with that vision.
You’ll find the majority of the big not for profits now operate this way.”