
Semyon Dukach: Non-profit Profiteering - prakash
http://semyondukach.blogspot.com/2009/12/non-profit-profiteering.html
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marciovm123
I see this as a case of the fundamental problem with the international non-
profit model: the money comes in at one place, the supposed value-creation is
happening somewhere far away, and the non-profit group in between is the only
entity in contact with both sides. In other words, the value that the 1st-
world government or individual is getting for their donation is based largely
on what they hear from the non-profit. Since the non-profit is incentivized to
report success to keep the money flowing, it's unlikely to report an accurate
picture of what is happening. With time, non-profits become very good at
raising money with inspirational stories of intense human needs, project
potential, supposed past achievements, and hip language (not to mention
political connections). At the same time, since their actual effectiveness at
achieving their goals is largely irrelevant to their business model, it almost
certainly sucks. As OP indicates, transparency is the solution, and the
internet should certainly enable that to a greater degree then currently
happens.

