Value and Job Creation = World Change
Let me start off by saying that I love TechCrunch and I have a lot of respect for Mike Arrington. I agree with a lot of what he says and believes in, so this isn’t a personal attack on him. This is just inspired by a post he made on Twitter and that’s all.
Also, I’d like to point out that I donate to several charities, but I research them very well before donating and I also believe there are very few worth donating to and that’s what this post is all about.
You see, I hear this a lot – “If you really cared about the world, you’d give your money to charities instead of x, y or z.” The thing is, most charities are BULLSHIT. Giving money to most charities is like flushing money down a toilet. I have worked at three non-profits in my life: Greenpeace, Shanti Gallery (art gallery who’s proceeds helped AIDS research) and WEAP (organization that helped women in underprivileged or welfare to work situations learn technology skills to get better jobs). I phone canvassed for Greenpeace (age 16), sold art for Shanti (age 17) and was the CTO of WEAP (age 25), so I’ve had broad experience in different organizations over the years. What did all three of the non-profits I worked for have in common? Mismanagement of money and very little social change, research or animals saved. The only thing they all did well was make someone feel a sense of happiness that they did a good deed in the world when they wrote huge checks.
Also, businesses are in the business of succeeding and making money. Non-profits are not. They don’t have same methods of success. When non-profits start to run out of money, they don’t get crafty, they just ask for more. It is like a never ending bleeding wound that you just stuff bandages on. A for-profit business will create a return on investment or go down trying.
Now that I’m in a position to invest, the amount of charities that contact me begging for money is astounding. Every one of them promises the same thing – great change in the world and a promise for a better future.
You see, I believe the greatest good you can do in the world is create value (goods or services) that consumers and businesses want to pay for and in doing so, you create jobs. I think a better use of money than charities is investments in the stock market or businesses – your own or someone elses. In doing so, you have a better chance of improving the world.
What about the 6k I spent on TED? Well, every time I meet someone or share ideas, I have a better chance of creating value or jobs and so do they. Those connections are valuable for business, theirs and mine. It isn’t like we’ll chat or I’ll watch a talk and I’ll go home feeling good that I saved a whale or solved world hunger. The value of networking pays off over time and who you know makes you like Voltron. I’m only so strong by myself, but with the power of others and their ideas, you can truly start making change in the world together, especially if you incorporate those changes into business.
So, what charities do I donate to? Charities that operate like for-profit organizations such as Kiva and Reason Magazine/Foundation. I think the only exception I’ve made is for the Methuselah Foundation, because medical research is tricky and requires a lot of money and the payback sometimes may not even be seen in our lifetime, but if they succeed the payoff is great. I donate money to the WJF and it is a for-profit entity.
In the end, do what you want with your money and don’t listen to people who want you to feel guilty for spending your money on whatever the heck you want to, because even the act of buying a thing excels innovation and ideas. Buying a thing on Ebay might be more beneficial than any amount of money given to a non-profit at the end of the day.
