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Dan

ThewaywethinkaboutcharityisdeadIwanttotalkaboutsocialinnovationandsocialentrepreneurship.Ihappentohavetriplets.They'relittle.They'refiveyearsold.SometimesItellpeopleIhavetriplets.Theysay,"Really?Howmany?"Here'sapictureofthekids--that'sSage,andAnnalisaandRider.Now,Ialsohappentobegay.Beinggayandfatheringtripletsisbyfarthemostsociallyinnovative,sociallyentrepreneurialthingIhaveeverTherealsocialinnovationIwanttotalkaboutinvolvescharity.Iwanttotalkabouthowthethingswe'vebeentaughttothinkaboutgivingandaboutcharityandaboutthenonprofitsector,areactuallyunderminingthecauseswelove,andourprofoundyearningtochangetheworld.ButbeforeIdothat,Iwanttoaskifweevenbelievethatthenonprofitsectorhasanyseriousroletoplayinchangingtheworld.Alotofpeoplesaynowthatbusinesswillliftupthedevelopingeconomies,andsocialbusinesswilltakecareoftherest.AndIdobelievethatbusinesswillmovethegreatmassofhumanityforward.Butitalwaysleavesbehindthat10percentormorethatismostdisadvantagedorunlucky.Andsocialbusinessneedsmarkets,andtherearesomeissuesforwhichyoujustcan'tdevelopthekindofmoneymeasuresthatyouneedforamarket.Isitontheboardofacenterforthedevelopmentallydisabled,andthesepeoplewantlaughterandcompassionandtheywantlove.Howdoyoumonetizethat?Andthat'swherethenonprofitsectorandphilanthropycomein.Philanthropyisthemarketforlove.Itisthemarketforallthosepeopleforwhomthereisnoothermarketcoming.Andsoifwereallywant,likeBuckminsterFullersaid,aworldthatworksforeveryone,withnooneandnothingleftout,thenthenonprofitsectorhastobeaseriouspartoftheconversation.Butitdoesn'tseemtobeworking.Whyhaveourbreastcancercharitiesnotcomeclosetofindingacureforbreastcancer,orourhomelesscharitiesnotcomeclosetoendinghomelessnessinanymajorcity?Whyhaspovertyremainedstuckat12percentoftheU.S.populationfor40years?Andtheansweris,thesesocialproblemsaremassiveinscale,ourorganizationsaretinyupagainstthem,andwehaveabeliefsystemthatkeepsthemtiny.Wehavetworulebooks.Wehaveoneforthenonprofitsector,andonefortherestoftheeconomicworld.It'sanapartheid,anditdiscriminatesagainstthenonprofitsectorinfivedifferentareas,thefirstbeingcompensation.Sointhefor-profitsector,themorevalueyouproduce,themoremoneyyoucanmake.Butwedon'tlikenonprofitstousemoneytoincentivizepeopletoproducemoreinsocialservice.Wehaveavisceralreactiontotheideathatanyonewouldmakeverymuchmoneyhelpingpeople.Interestingly,wedon'thaveavisceralreactiontothenotionthatpeoplewouldmakealotofmoneynothelpingotherpeople.Youknow,youwanttomake50milliondollarssellingviolentvideogamestokids,goforit.We'llputyouonthecoverofWiredmagazine.Butyouwanttomakehalfamilliondollarstryingtocurekidsofmalaria,andyou'reconsideredaparasiteyourself.Andwethinkofthisasoursystemofethics,butwhatwedon'trealizeisthatthissystemhasapowerfulsideeffect,whichis:Itgivesareallystark,mutuallyexclusivechoicebetweendoingverywellforyourselfandyourfamilyordoinggoodfortheworld,tothebrightestmindscomingoutofourbestuniversities,andsendstensofthousandsofpeoplewhocouldmakeahugedifferenceinthenonprofitsector,marchingeveryyeardirectlyintothefor-profitsectorbecausethey'renotwillingtomakethatkindoflifelongeconomicsacrifice.Businessweekdidasurvey,lookedatthecompensationpackagesforMBAs10yearsoutofbusinessschool.AndthemediancompensationforaStanfordMBA,withbonus,attheageof38,was400,000dollars.Meanwhile,forthesameyear,theaveragesalaryfortheCEOofa$5million-plusmedicalcharityintheU.S.was232,000dollars,andforahungercharity,84,000dollars.Now,there'snowayyou'regoingtogetalotofpeoplewith$400,000talenttomakea$316,000sacrificeeveryyeartobecometheCEOofahungerSomepeoplesay,"Well,that'sjustbecausethoseMBAtypesaregreedy."Notnecessarily.Theymightbesmart.It'scheaperforthatpersontodonate100,000dollarseveryyeartothehungercharity;save50,000dollarsontheirtaxes--sostillberoughly270,000dollarsayearaheadofthegame--nowbecalledaphilanthropistbecausetheydonated100,000dollarstocharity;probablysitontheboardofthehungercharity;indeed,probablysupervisethepoorSOBwhodecidedtobecometheCEOofthehungercharity;andhavealifetimeofthiskindofpowerandinfluenceandpopularpraisestillaheadofThesecondareaofdiscriminationisadvertisingandmarketing.Sowetellthefor-profitsector,"Spend,spend,spendonadvertising,untilthelastdollarnolongerproducesapennyofvalue."Butwedon'tliketoseeourdonationsspentonadvertisingincharity.Ourattitudeis,"Well,look,ifyoucangettheadvertisingdonated,youknow,toairatfouro'clockinthemorning,I'mokaywiththat.ButIdon'twantmydonationspentonadvertising,Iwantitgototheneedy."Asifthemoneyinvestedinadvertisingcouldnotbringindramaticallygreatersumsofmoneytoservetheneedy.Inthe1990s,mycompanycreatedthelong-distanceAIDSRidebicyclejourneys,andthe60mile-longbreastcancerthree-daywalks,andoverthecourseofnineyears,wehad182,000ordinaryheroesparticipate,andtheyraisedatotalof581milliondollars.Theyraisedmoremoneymorequicklyforthesecausesthananyeventsinhistory,allbasedontheideathatpeoplearewearyofbeingaskedtodotheleasttheycanpossiblydo.Peopleareyearningtomeasurethefulldistanceoftheirpotentialonbehalfofthecausesthattheycareaboutdeeply.Buttheyhavetobeasked.WegotthatmanypeopletoparticipatebybuyingfulladsinTheNewYorkTimes,inTheBostonGlobe,inprimetimeradioandTVadvertising.Doyouknowhowmanypeoplewewould'vegottenifweputupfliersinthelaundromat?CharitablegivinghasremainedstuckintheU.S.,attwopercentofGDP,eversincewestartedmeasuringitinthe1970s.That'sanimportantfact,becauseittellsusthatin40years,thenonprofitsectorhasnotbeenabletowrestleanymarketshareawayfromthefor-profitsector.Andifyouthinkaboutit,howcouldonesectorpossiblytakemarketshareawayfromanothersectorifitisn'treallyallowedtomarket?Andifwetelltheconsumerbrands,"Youmayadvertiseallthebenefitsofyourproduct,"butwetellcharities,"Youcannotadvertiseallthegoodthatyoudo,"wheredowethinktheconsumerdollarsaregoingtoflow?Thethirdareaofdiscriminationisthetakingofriskinpursuitofnewideasforgeneratingrevenue.SoDisneycanmakeanew$200millionmoviethatflops,andnobodycallstheattorneygeneral.Butyoudoalittle$1millioncommunityfundraiserforthepoor,anditdoesn'tproducea75percentprofittothecauseinthefirst12months,andyourcharacteriscalledintoquestion.Sononprofitsarereallyreluctanttoattemptanybrave,daring,giant-scalenewfundraisingendeavors,forfearthatifthethingfails,theirreputationswillbedraggedthroughthemud.Well,youandIknowwhenyouprohibitfailure,youkillinnovation.Ifyoukillinnovationinfundraising,youcan'traisemorerevenue;ifyoucan'traisemorerevenue,youcan'tgrow;andifyoucan'tgrow,youcan'tpossiblysolvelargesocialproblems.Thefourthareaistime.SoAmazonwentforsixyearswithoutreturninganyprofittoinvestors,andpeoplehadpatience.Theyknewthattherewasalong-termobjectivedowntheline,ofbuildingmarketdominance.Butifanonprofitorganizationeverhadadreamofbuildingmagnificentscalethatrequiredthatforsixyears,nomoneywasgoingtogototheneedy,itwasallgoingtobeinvestedinbuildingthisscale,wewouldexpectacrucifixion.Thelastareaisprofititself.Sothefor-profitsectorcanpaypeopleprofitsinordertoattracttheircapitalfortheirnewideas,butyoucan'tpayprofitsinanonprofitsector,sothefor-profitsectorhasalockonthemulti-trillion-dollarcapitalmarkets,andthenonprofitsectorisstarvedforgrowthandriskandideaWell,youputthosefivethingstogether--youcan'tusemoneytoluretalentawayfromthefor-profitsector;youcan'tadvertiseonanywherenearthescalethefor-profitsectordoesfornewcustomers;youcan'ttakethekindsofrisksinpursuitofthosecustomersthatthefor-profitsectortakes;youdon'thavethesameamountoftimetofindthemasthefor-profitsector;andyoudon'thaveastockmarketwithwhichtofundanyofthis,evenifyoucoulddoitinthefirstplace--andyou'vejustputthenonprofitsectoratanextremedisadvantagetothefor-profitsector,oneverylevel.Ifwehaveanydoubtsabouttheeffectsofthisseparaterulebook,thisstatisticissobering:From1970to2009,thenumberofnonprofitsthatreallygrew,thatcrossedthe$50millionannualrevenuebarrier,is144.Inthesametime,thenumberoffor-profitsthatcrosseditis46,136.Sowe'redealingwithsocialproblemsthataremassiveinscale,andourorganizationscan'tgenerateanyscale.AllofthescalegoestoCoca-ColaandBurgerKing.Sowhydowethinkthisway?Well,likemostfanaticaldogmainAmerica,theseideascomefromoldPuritanbeliefs.ThePuritanscamehereforreligiousreasons,orsotheysaid,buttheyalsocameherebecausetheywantedtomakealotofmoney.Theywerepiouspeople,buttheywerealsoreallyaggressivecapitalists,andtheywereaccusedofextremeformsofprofit-makingtendencies,comparedtotheothercolonists.Butatthesametime,thePuritanswereCalvinists,sotheyweretaughtliterallytohatethemselves.Theyweretaughtthatself-interestwasaragingseathatwasasurepathtoeternaldamnation.Thiscreatedarealproblemforthesepeople.Herethey'vecomeallthewayacrosstheAtlantictomakeallthismoney,butmakingallthismoneywillgetyousentdirectlytoHell.Whatweretheytodoaboutthis?Well,charitybecametheiranswer.Itbecamethiseconomicsanctuary,wheretheydopenancefortheirprofit-makingtendencies--atfivecentsonthedollar.Soofcourse,howcouldyoumakemoneyincharityifcharitywasyourpenanceformakingmoney?Financialincentivewasexiledfromtherealmofhelpingothers,sothatitcouldthriveintheareaofmakingmoneyforyourself,andin400years,nothinghasintervenedtosay,"That'scounterproductiveandthat'sunfair."Now,thisideologygetspolicedbythisoneverydangerousquestion,whichis,"Whatpercentageofmydonationgoestothecauseversusoverhead?"Therearealotofproblemswiththisquestion.I'mgoingtojustfocusontwo.First,itmakesusthinkthatoverheadisanegative,thatitissomehownotpartofthecause.Butitabsolutelyis,especiallyifit'sbeingusedforgrowth.Now,thisideathatoverheadissomehowanenemyofthecausecreatesthissecond,muchlargerproblem,whichis,itforcesorganizationstogowithouttheoverheadthingstheyreallyneedtogrow,intheinterestofkeepingoverheadlow.Sowe'veallbeentaughtthatcharitiesshouldspendaslittleaspossibleonoverheadthingslikefundraisingunderthetheorythat,well,thelessmoneyyouspendonfundraising,themoremoneythereisavailableforthecause.Well,that'strueifit'sadepressingworldinwhichthispiecannotbemadeanybigger.Butifit'salogicalworldinwhichinvestmentinfundraisingactuallyraisesmorefundsandmakesthepiebigger,thenwehaveitpreciselybackwards,andweshouldbeinvestingmoremoney,notless,infundraising,becausefundraisingistheonethingthathasthepotentialtomultiplytheamountofmoneyavailableforthecausethatwecareaboutsodeeply.I'llgiveyoutwoexamples.WelaunchedtheAIDSRideswithaninitialinvestmentof50,000dollarsinriskcapital.Withinnineyears,wehadmultipliedthat1,982times,into108milliondollarsafterallexpenses,forAIDSservices.Welaunchedthebreastcancerthree-dayswithaninitialinvestmentof350,000dollarsinriskcapital.Withinjustfiveyears,wehadmultipliedthat554times,into194milliondollarsafterallexpenses,forbreastcancerresearch.Now,ifyouwereaphilanthropistreallyinterestedinbreastcancer,whatwouldmakemoresense:gooutandfindthemostinnovativeresearcherintheworldandgiveher350,000dollarsforresearch,orgiveherfundraisingdepartmentthe350,000dollarstomultiplyitinto194milliondollarsforbreastcancerresearch?2002wasourmostsuccessfulyearever.Wenettedforbreastcanceralone,thatyearalone,71milliondollarsafterallexpenses.Andthenwewentoutofbusiness,suddenlyandtraumatically.Why?Well,theshortstoryis,oursponsorssplitonus.Theywantedtodistancethemselvesfromusbecausewewerebeingcrucifiedinthemediaforinvesting40percentofthegrossinrecruitmentandcustomerserviceandthemagicoftheexperience,andthereisnoaccountingterminologytodescribethatkindofinvestmentingrowthandinthefuture,otherthanthisdemoniclabelof"overhead."Soononeday,all350ofourgreatemployeeslosttheirjobs...becausetheywerelabeled"overhead."Oursponsorwentandtriedtheeventsontheirown.Theoverheadwentup.Netincomeforbreastcancerresearchwentdownby84percent,or60milliondollars,inoneyear.Thisiswhathappenswhenweconfusemoralitywithfrugality.We'veallbeentaughtthatthebakesalewithfivepercentoverheadismorallysuperiortotheprofessionalfundraisingenterprisewith40percentoverhead,butwe'remissingthemostimportantpieceofinformation,whichis:Whatistheactualsizeofthesepies?Whocaresifthebakesaleonlyhasfivepercentoverheadifit'stiny?Whatifthebakesaleonlynetted71dollarsforcharitybecauseitmadenoinvestmentinitsscaleandtheprofessionalfundraisingenterprisenetted71milliondollarsbecauseitdid?Nowwhichpiewouldweprefer,andwhichpiedowethinkpeoplewhoarehungrywouldprefer?Here'showallofthisimpactsthebigpicture.IsaidthatcharitablegivingistwopercentofGDPintheUnitedStates.That'sabout300billiondollarsayear.Butonlyabout20percentofthat,or60billiondollars,goestohealthandhumanservicescauses.Therestgoestoreligionandhighereducationandhospitals,andthat60billiondollarsisnotnearlyenoughtotackletheseproblems.ButifwecouldmovecharitablegivingfromtwopercentofGDP,upjustonesteptothreepercentofGDP,byinvestinginthatgrowth,thatwouldbeanextra150billiondollarsayearincontributions,andifthatmoneycouldgodisproportionatelytohealthandhumanservicescharities,becausethoseweretheonesweencouragedtoinvestintheirgrowth,thatwouldrepresentatriplingofcontributionstothatsector.Nowwe'retalkingscale.Nowwe'retalkingthepotentialforrealchange.Butit'snevergoingtohappenbyforcingtheseorganizationstolowertheirhorizonstothedemoralizingobjectiveofkeepingtheiroverheadlow.Ourgenerationdoesnotwantitsepitaphtoread,"WekeptcharityoverheadWewantittoreadthatwechangedtheworld,andthatpartofthewaywedidthatwasbychangingthewaywethinkaboutthesethings.Sothenexttimeyou'relookingatacharity,don'taskabouttherateoftheiroverhead.Askaboutthescaleoftheirdreams,theirApple-,Google-,Amazon-scaledreams,howtheymeasuretheirprogresstowardthosedreams,andwhatresourcestheyneedtomakethemcometrue,regardlessofwhattheoverheadis.Whocareswhattheoverheadisiftheseproblemsareactuallygettingsolved?Ifwecanhavethatkindofgenerosity--agenerosityofthought--thenthenon-profitsectorcanplayamassiveroleinchangingtheworldforallthosecitizensmostdesperatelyinneedofittochange.Andifthatcanbeourgeneration'senduringlegacy--thatwetookresponsibilityforthethinkingthathadbeenhandeddowntous,thatwerevisitedit,werevisedit,andwereinventedthewholewayhumanitythinksaboutchangingthings,forever,foreveryone--well,IthoughtIwouldletthekidssumupwhatthatwouldbe.AnnalisaSmith-Pallotta:ThatwouldbeSageSmith-Pallotta:arealsocialRiderSmith-Pallotta:innovation.DanPallotta:Thankyouverymuch.Thankyou.DanPallotta借助高超的营销和运营,以及对参与者心态的精准40%35万V:Tomonetizeistomakemoney.Ifyouwriteapopularblog,figureouthowtomonetizeitsoyoudon’tworkforfree.Tomonetizealsomeanstoestablishacountry'slegaltender,asintoliterallymakemoney.V:asocialpolicyorracialsegregationinvolvingpoliticalandeconomicandlegaldiscriminationagainstpeoplewhoarenotWhitestheformerofficialpolicyinSouthAfrica此处引申为V:Whensomething'svisceral,youfeelitinyourguts.Avisceralfeelingisintuitive—theremightnotbearationalexplanation,butyoufeelthatyouknowwhat'sbest,likeyourvisceralreactionagainsteggsalad.V:Malariaisaninfectiousdiseasethatspreadsthroughmosquitoes.Ifyou'retravelinginawarm-climateareainthetropics,youmightbeindangerofcontractingmalaria.PackyourDeepWoodsOFF!V:Wearyasanadjectivemeans"verytiredorwornout,"likewearystudentswhofinishedalongweekofstudyingandtakingtests.V:Ifyouneedtowashyourclothesanddon'thaveawashingmachineathome,you'llneedtovisitaLaundromat,whereyoucanpaytouseawasheranddryer.V:combattoovercomeanopposingtendencyorV:Somethingthat'ssoberingisserious,andevenalittlebitworrying.It'ssoberingtolearnthatsomeoneyouloveisveryill.V:Ifyouareexcessivelyenthusiasticaboutsomething—asportsteam,anactor,yourreligion,savingthewhales,acertainbrandofchocolate—thenyouarefanaticalaboutit.V:Dogmameansthedoctrineofbeliefinareligionorapolitical

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