My Two Cents / NonProfit

Dan Pallotta: The Way We Think about Charity is Dead Wrong

A Chinese nonprofit (that I’m supposed to be volunteering with more than I actually am) recommended this TED Talk to me the other week.  It’s worth a watch.  Totally agree with most of what Dan Pallotta has to say.  His main point is that the nonprofit sector is starved for risk, growth, and idea capital and that the popular question of “What percentage of my donation goes to the cause vs. what goes to overhead?” is the wrong question to ask. This question assumes that “overhead” is not part of “the cause”. Overhead ABSOLUTELY is part of the cause–especially if it’s being used for growth. The idea that Overhead is not part of the Cause forces charities to Forego What They Need to Grow. Take a look:

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