Charitable giving, radical utilitarianism and democracy

Over on The Nonprofiteer, I grapple with the justification for philanthropy which fails (as mine does) to increase Disability-Adjusted Life Years in the developing world. Not entirely satisfied with my arguments and would welcome any and all assistance.

Stupid Billionaire Tricks: Give Charity to MBAs

The Nonprofiteer is at it again, gently suggesting that a Sun Microsystems billionaire isn’t necessarily the world’s authority about how to combat poverty.  But maybe fighting poverty isn’t what he had in mind after all.

Who taught people to say “charity” with a sneer?

Public school funding: perhaps the public could help out?

I hold forth on/as the Nonprofiteer on the idiocy of our debating who should pay for public schools, and the extreme idiocy of our thinking it swell that the cradle of a democratic society should be controlled by individuals whom nobody elected.

News Flash: Philanthropy Is Wealth Solving Problems of Its Own Creation

Warren Buffett’s son has figured out that the proud towers of philanthropy are built on the rotten foundations of inequality and excessive wealth accumulation. I give him credit for being willing to say this aloud–it’s usually left unsaid, one of those things everyone in the club understands but which might be resented by the polloi so we just won’t mention it.

I don’t grok the end of the piece, though, where Buffett calls for a “new paradigm.” Like “thinking outside of the box” or “disruptive technology,” that’s always a safe bet in the rarefied world of TED talks and innovation gatherings. But I dare to argue that what we actually need is the original paradigm–namely, that in a democratic society we come to consensus on the problems to be solved and then tax ourselves to solve them, rather than permitting accumulations of extreme wealth and letting wealthy people create their own social policies.

And I also dare to argue that for the moment, while living under the reign of Big Capital and Big Philanthropy, maybe we should be a little less grateful.

 

Community Reinvestment Comes to Health Care

I have no idea what the nonprofit community would do without Rick Cohen of the Nonprofit Quarterly: if there’s an issue affecting nonprofits he’ll have a fresh and useful perspective on it, and this article about the Community Health Needs Assessments required by the  Affordable Care Act is no exception.

What struck me most was Cohen’s point that CHNAs could do for health care what the Community Reinvestment Act did for real estate lending: make large institutions pay attention to the communities where they do business.  Whatever its weaknesses, CRA did make a serious dent in the once-common practice of red-lining, refusal to lend in poor neighborhoods, and we can expect CHNAs to make a similar change in the culture of nonprofit hospitals.  Simply providing an emergency room isn’t sufficient community service, and if a nonprofit hospital fails to grasp that it jeopardizes not only its Federal health-care dollars but the tax-favored status of the rest of its income.   We know that because the provision calls for enforcement by the IRS as well as the Department of Health and Human Services.

This sort of positive pressure from the legislature to improve community health services is far more effective than the purely negative pressure courts can supply by rejecting a hospital’s claim of charitable status (as in the Provena case in Illinois). Because the point isn’t to play “gotcha” with nonprofit hospitals—it’s to supply communities with the maximum benefit possible from the health care resources already available.

Once again the more you know about the Affordable Care Act, the better you like it.   And “Obamacare,” intended as an epithet, sounds more and more like a well-deserved tribute.

cross-posted with The Nonprofiteer: www.nonprofiteer.net

The last word (don’t we wish) on venture philanthropy

This is the smartest, ballsiest response I’ve seen to the omnipresent nonsense about how what’s wrong with philanthropy and charity is that they’re too soft-hearted and how all the problems of the world could be solved if they were just more rigorous and did their “due diligence” and brought other failed concepts and consultant buzzwords over from the for-profit sector. What refreshing thoughtfulness and appropriate humility. Bravo, Mr. Scanlan!

cross-posted with nonprofiteer.net

What price democracy?

There’s an old joke about a man who asks a woman to sleep with him for $1 million. She agrees, whereupon he asks her to sleep with him for $1. “What kind of a girl do you think I am?” asks the woman indignantly. “We’ve settled that,” replies the man, “We’re just arguing about the price.”

This came to mind in response to this story about the price of the Broad Foundation’s generosity to the schools of New Jersey. A recent Broad Foundation grant stipulates that it will be available only as long as Chris Christie remains governor.
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From Law Student to Nonprofit Trustee

Making the rounds at law schools for Good Counsel: Meeting the Legal Needs of Nonprofits, I’m heartened to meet so many students interested in serving on charities boards in their communities.  My recent talk at Harvard Law School about how law students and young lawyers can start preparing for the trustee role is available here.