The general public, contends Pallotta, condones making millions selling violent video games to unassuming children for instance, but making a million helping children battle cancer is perceived as profiteering and thus, deemed morally suspect.
Nonprofits struggle mightily with such lop-sided public perceptions and socio-cultural double standards. As the trusted leader of The Childhood Leukemia Foundation, I am deeply acquainted with this brand of public scrutiny, which is why I welcome the conversation every time it surfaces, because as I see it, it's an opportunity to educate and inform a fairly misinformed public record. Uncharitable asks the question, “is it better to raise $500 at a cake sale with 100% going to the charity or spend $400 million to raise $1 million dollars to find a cure for cancer?
Pallotta asserts that the public is well-intended, but simply mistaken, adding that we seem tenaciously preoccupied with fundraising costs and levy unsubstantiated claims such as labeling fundraising expense ratios silly, useless and even fraud “efficient” across nonprofit organizations. Pallotta believes that nonprofit organizations have a responsibility to educate their constituents, donors and the public in general on the necessity of expenses, as well as the wealth of sound business strategies that drive successful ongoing and emerging nonprofit endeavors.
Our culture allows for-profit companies to raise massive capital in the stock market by offering investment returns, but that same society forbids the payment of a financial return to charitable organizations. And the result becomes predictable: the for-profit sector monopolizes the capital markets, while charities are left begging for donations. Philanthropic enterprise is where commerce intersects with charity. It is a challenging proposition combining the two, but one that must be granted the same opportunity to flower, lest charitable work stop helping people and causes in deep need of support beyond that which is available through conventional channels.
The mission of both the for-profit and nonprofit organization is the same: raise capital.
The end result however, is different. For the for-profit company, the goal is to raise capital for private gain and private interests. For the non-profit organization, the objective is to raise capital transparently, to improve a cause or improve the public good. In other words, the end product is either a widget or a win for the world. I prefer to pledge my energy, love and charitable nature to the latter. I hope you'll join me.
Something, says Pallotta, is fundamentally wrong with the standing model for fundraising and I agree. Pallotta is on a quest to change that and I have joined this worthy cause. Uncharitable is a manifesto that puts a new cause on the map: equal economic rights for charity.
What do you think? I would love to know.
Photo of Dan Pallotta provided by Council on Foundations
