June 25, 2009
Avoiding "Useless" Charities
Thinking of starting a charity?
Brendan Baker, a Canadian engineer who has logged significant time in Africa working for Engineers Without Borders (an international charity that assists with engineering projects in the developing world), has some advice. On his blog Cashewman he recommends that to avoid creating more “useless” charities, people interested in starting new nonprofit groups ask themselves three questions first:
- Do I want to actually change things or just make myself feel good?
- What are the root problems?
- Is somebody already doing this better?
Mr. Baker (rather harshly) applies his three questions rule to Pixel Equality, a start-up charity in New York that provides free video games to young people who can’t afford them. He is dubious of the undertaking from the get-go: “You know what might help more?” Mr. Baker writes. “Exposing kids to actual, real-life cultures, and actually communicating with people.”
The second question is all about getting beyond “surface indications.”
“Kids can’t afford video games but want them—Why?” Mr. Baker writes. “Because they have less disposal income. Why? Maybe because they have one parent who works hard for minimum wage. Or their parents have recently become unemployed. Or they happen to be trapped in a socioeconomic poverty cycle.”
And how does he see the video-games-for-poor-kids scheme fare with his third question? Not well …
“No, nobody is doing it because it’s a stupid waste of time and goodwill,” Mr. Baker writes.
(Interestingly, Mr. Baker launched his own charitable cause of sorts last year, when he attempted to raise the $90,000 he needed to attend an MBA program at Oxford focused on social entrepreneurship by soliciting $3 donations from 30,000 people over the Internet; donors were promised a small fragment of his eventual diploma. The effort fell short and the $11,000 he raised was ultimately given to Engineers Without Borders and Medecins Sans Frontiers.)
What do you think about Mr. Baker’s observations? Join the debate by clicking on the comments link below.
Comments
Commenting is closed for this article.
Previous: 'The Philanthropist' Lacks Reality
Next: Millionaires' Ranks Shrank by 15% Last Year, According to New Survey
With 1.9 million nonprofits in the US and nearly half having revenues under $25,000, I think Mr. Baker’s point is very well taken. We have a problem of terminal uniqueness in the sector and rampant inefficiency when we sacrifice economies of scale. Hopefully the bad economy will focus at least some inefficient charities on the question of mergers.
— Ken Berger Jun 25, 09:30 AM #
Charities are also subject to the market – if they can’t raise funds, which should stem from their abilities to make an impact or appeal to donors, they won’t survive. I generally agree with his points and questions, but think the market will step in and end those charities that are ineffective.
— Sonesh Shah Jun 25, 11:24 AM #
Well, he might be somewhat right, but he certainly is terribly rude.
— mccxxiii Jun 25, 03:24 PM #
I see so many charities started because a well meaning person wants to do some good in the world, but they haven’t thought it through. They think that just because they’ve gotten their 501©3 that the money will start rolling in and they can get their message out. But just like in the for profit world, you don’t set up shop on the same corner of someone who is doing the same thing and doing it well. I’m glad that Ken brought up mergers. Sometimes that’s a way to combine skills, resources, and passion for a cause w/o sacrificing a portion of the target market.
— Amy Shropshire Jun 25, 04:10 PM #
Thanks to Humanity Calls the public and potential donors will have the opportunity to evaluate the value of charitable organizations and cast a vote online for those they regard as worthy. As I understand it, the program will launch in late 2009.
— Kathleen Connolly Jun 25, 06:16 PM #
Brendan is right.
Consultants to nonprofits should also ask these same questions of their clients. While it may mean losing some business, it is necessary. In asking these questions, the charities that are needed and remain in business will only become better.
— Kevin Feldman Jun 26, 09:16 AM #