Forbes contributor Jerry Bowyer posted our interview on how charity can do more harm than good. Below is an excerpt. To see the complete interview, go to Forbes.
Peter: “In philanthropy there’s a disconnect between who’s paying for services and who’s receiving them. In a business setting, you’ve got to provide value to your customers: They pay for the goods and services you’re providing.
Philanthropy is unfortunate in that the people receiving services are not writing the checks—therefore their voice is not heard. When you disconnect those two aspects, you do not have accountability that acts in the best interest of the people who are receiving.
And so within the nonprofit space, we’ve created a system where he/she who tells the best story is the one that’s rewarded. … ”
Jerry: “So, in some sense, the philanthropy, the global-development philanthropy industry, is an industry that trades stories for dollars.”
To see more, click here.
If you’re interested, our friends at PovertyCure have posted a video on the need to turn the paradigm of charity on its head.
Here are 3 related blog posts on charity, giving, and job creation in the developing world:
