© 2018 by Erik Bergman

 Charity startups 

Giving is a completely selfish act

I give to feel better about myself. According to me that’s the reason that anybody gives.
 

I believe that the greatest human need is to contribute. A person who doesn’t contribute is a person who is not needed and a person who is not needed is a person without a purpose.
 

We are meant to live in big groups and we have an inherent need for adding value to others. I believe that if people spent more money on giving instead of buying, both the givers and the world would be a happier.
 

Personally one of my life goals is to give and contribute as much as possible. Currently I’m trying to learn how to give in the most efficient way because there is a lot of ways to give where the money just end up disappearing. There are also plenty of very wrong assumptions about charity that causes the world of giving a lot of damage.

A complete game changer

This TED talk by Dan Pallotta has completely changed my view of giving and I would say it is the biggest “aha moment” I ever got online.

To sum the clip up he compares the profit sector vs the non profit sector and how the non profit sector gets their hands completely tied up because of five main reasons. 

Compensation:
We have a visceral reaction to the idea that anyone would make very much money helping other people. Interestingly that we don’t have visceral reaction to anyone making very much money not helping other people. Hence charities can’t pay competitive salaries to top talent.

Advertising and marketing:
We don’t want donated money to be spent on advertising. Hence the charities can’t tell the world all the good they do to attract more donors. Competing with all consumer brands that can spend any euro they have on marketing. What will people think of when it’s time to spend? Where to give or what to buy?

Risk taking:
If a startup raises €10M and goes out of business then no one is to blame. But if someone raises €1M to do a charity project and it doesn’t manage to generate all the good they were hoping to then heads will roll. When you prohibit failure you kill innovation.

Time:
If a startup takes six years without making one single euro people will have patient as long as it’s growing. But if a charity spent six years just building magnificent scale then people would expect a crucifixion.

Profits:
The for profit sector can pay to attract capital but the non profit sector can’t. Which gives the for profit sector monopoly on the  capital market.

This is just a very short summary of a really great clip. Please spend the 19 minutes to watch it. It is a complete game changer!

Charity startups I support

I’ve chosen only to support young organisations because I want to see where my money goes and understand how they develop. For me that increases my motivation to give dramatically. 

YoungDrive
YoungDrive is an organisation that educates teenagers in Africa in the most basic kind of entrepreneurship. The motto is to “Dream big, start small”. The idea is basically that everything is better than stealing, begging and prostitution. The education teaches how to be independent and do anything from polishing shoes to growing potatoes. 

Love and Hope
Love and Hope is dealing with the most horrible scenarios in the world. Child sex slavery, most children are in the ages of 5-13. It’s mainly in Nepal, Bangladesh and India and they work with both prevention, active rescuing of captivated children as well as treating and protecting the victims.

IT for Children
ITC runs a very basic IT education for kids in Ghana. The first class is to plug in the electric cable and press the on button and from there it moves on to basic Microsoft Office, finding information on Google and simple web development. The goal is to make the kids well prepared for the future.

Contribution To Opportunties
CTO are working to recognise and invest in trustworthy, pre-existing initiatives for children and youth in disadvantaged communities, thus establishing true change for the people involved. They are based in the slum areas outside of Cape Town, South Africa.

Marinas orphanage
Marina is an old class mate of mine who is financially responsible an orphanage for children in Uganda - HOFA Abode, Hope for aids orphans. The home is being run by a husband and his wife and they take care of about 30 kids in the age of 5-15 years old.