Saturday, September 7, 2013

social entrepreurship : or what goes wrong with chartity?

Recently i have reported from a group of young people that started a social enterprise, named inside travel, that tires to offer authentic travels to Ethiopia and offer new tourism market opportunities to rural communities.

I have been thinking about how to support these communities to build up an institution/structure so that they  build a benefit sharing mechanism allowing the community as a whole to benefit from tourism, rather than just a few, splinting the community in to rich and even more poor. My first over the thumb computation showed that we would need about 100 000 USD in 5 years to make this happen. The dramatic part of this story is that not one dollar would go to the community. It is just about helping them with building up an institution that will enable them to raise money from markets when ever after and develop themselves out of their own effort... sounds like a very smart and sustainable idea, but who will be willing to fund a project where no money flows to the community? Who is willing to take the risk to fund a project that might fail?

But in the middle of these thoughts, I found this TED talk. Dan Palotta, talks out of my heart, showing what goes wrong in funding aid.

"Activist and fundraiser Dan Pallotta calls out the double standard that drives our broken relationship to charities. Too many nonprofits, he says, are rewarded for how little they spend -- not for what they get done. Instead of equating frugality with morality, he asks us to start rewarding charities for their big goals and big accomplishments (even if that comes with big expenses). In this bold talk, he says: Let's change the way we think about changing the world."

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