https://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong/transcript?

language=en#t-949305

Summary
Dan Pallotta argues why do we think in a wrong way about charity. He believes that even if the business
firms play an important role in the economic growth, it is left behind a 10% of the population which has
big problems. Philanthropy is that kind of market where the supply and demand can resume to the concept
of love. The non-profit sector does not work because of the wrong mentality of the people.
1st area of discrimination: Compensation
First of all, people think that nonprofit organizations must not use money to stimulate the others to produce
more in the charitable sector. They accept the idea of earning money without helping, but they reject the idea of
earning money helping the others.
2nd area of discrimination: marketing
Secondly, another wrong idea is about marketing. For the firms the advertising is vital, but what people do not
understand is that is ok to spend money on marketing also in the nonprofit sector, because a strong advertising
means more money for the needy.
3rd area of discrimination: taking of risk in pursuit of new ideas for generating revenue
Above these, the author point that innovation for nonprofit organizations means raising more revenue and this is
the solution for an ONG to become bigger and to bring more solutions to the needy. So Disney can make a new
$200 million movie that flops, and nobody calls the attorney general. But you do a little $1 million community
fundraiser for the poor, and it doesn't produce a 75 percent profit to the cause in the first 12 months, and your
character is called into question.
4th area of discrimination: time
Moreover, time is not enough for an ONG. As an example, Amazon went for six years without returning any
profit to investors, and people had patience. But if a nonprofit organization ever had a dream of building
magnificent scale that required that for six years, no money was going to go to the needy, it was all going to be
invested in building this scale, we would expect a colaps of the ONG.
5th area of discrimination: profit itself
The last thing that the author emphasizes is about profit. It is a wrong to not let an ONG to attract new capital
and new ideas trough the profit. For-profit sector can pay people profits in order to attract their capital for their
new ideas, but you can't pay profits in a nonprofit sector.
In conclusion, there exist a lot of serious social problems and wrong delimitations between nonprofit and forprofit organizations. The solution for nonprofit organizations to work is to enlarge their power and in this way
to let them to bring important and big solutions.