Assignment First









Charity Case focused on the main points from Uncharitable, which was the book of Pallotta in 2010. Then it clarified strategies to bring actual and meaningful change in the nonprofit sector (TED, 2013). Pallotta claims that charities have been pressurized to obey regulations from a rulebook by which they are not allowed to pay on the things through which real change could be achieved. The argument was separated in 5 points:
• Compensation: we want people not to make monetary gains by charity, though we let the profit firm pays a competitive wage to employees (Grossman & Kind, 2002).
• Advertising and Marketing: We don’t want investors in the charitable sector spend money on advertising, though we let business advertise as more as possible.
• Risk Taking in Pursuit of New Donors: A charity is considered suspect when 5 million dollars charity could not accept 75% profit in its first 12 months. However, it is fine for a big budget or new product failed (Germak, 2013).
• Time Horizon: It is scandalous for a charity if it has long-term mission, which could not show short-term results. However, companies can run several years but they don’t return money to funders in the interest of long-term target.
• Profit: A charity needs investors to bring funds when it has fewer methods to attractive investors than the business. Because the business offers profits to attractive funders and has an entire ecosystem around funding new ventures (Dan Pallotta, 2010).