Tuesday, November 4, 2008

Commercialization of the establishment of efficient charities

Commercialization of the establishment of efficient charities

The issue of charity buried very deep. Harvard Business School master the management of Michael Porter said: "The general fund scandal took place in additional wages and benefits, but the real scandal is that there are a lot of money in the event of no effect. A lot of money has been wasted on inefficient On philanthropy. " He believes that charities can learn from the world of industry, which was progress. Many of the new generation of philanthropists leaders agree with him. In the next 20 years, there will be plenty of opportunities to make philanthropy more efficient.

Many of the new generation of philanthropists are also aware of the tradition of philanthropy efficiency is not high, they want their own applications, the world's best profit business principles in a charity cause changes in productivity. This has prompted the industry to adopt and adapt to people familiar with some of the world business jargon.

Philanthropists are talking about "social investment" and "the risk of charity" and "social entrepreneurs" and the "triple bottom line". The new methods of philanthropy is "strategic" and stressed that "market awareness" and "knowledge base" and often "a high degree of input", and always include donor funds "leverage" to maximize the Purposes.

"Leverage" of the new philanthropists are especially important. They know that regardless of personal wealth of the number in front of the Government's financial resources is still very small. In order to reflect the difference, they must focus their financial resources to the Government not involved in the field. However, not everyone is convinced that philanthropists must become more business-minded. Management scholar Jim Collins said, to a charity in the social sector to excellence, become "more like a business" was inappropriate.

However, even Collins has agreed to this approach - the money from philanthropist first submitted to the charities, to use the most in need of assistance. In recent years, many new enterprises and institutions set up and good luck combined with good management, will provide a charity of the capital market infrastructure and intermediaries, in order to provide an effective philanthropist way their money to those who "Social entrepreneurs" and other people who need the money - these newcomers, including a management consultant and research company as a "charitable investment bank."

At present, there is no market discipline to promote the adoption of innovative approaches philanthropist. In addition, the new philanthropists, and try to help them become more efficient innovators may find it harder to do than think. As the commercial business is becoming increasingly concentrated, charitable organizations are increasingly difficult to maintain its simple. International charity organizations responsible Bolalefu said, charity is the main part of the body, but that does not mean that it is pure. More and more enterprises shall cast from a base line (which is what has been done by the community) into the three bottom line - you (charity) for the company to do what? You have investors done? You what to do for the community?

In this case, both the company's philanthropy or charity, are faced with increasingly complex business environment. "Charitable business" is doing it gradually into the scope of the study.

In the UK, currently there are even two universities - South Bank University and City University Business School has "charitable business" in the MBA curriculum on the basis of the development to another subject - "MVA", including charity accounting and financial management , Charitable and philanthropic management, market specific charity programs.

South Bank University professor of strategic management that Bruce, the charity has been increasing business value. In the face of fierce competition, the charity must be good to do business planning.

Professor at Duke University, said the new philanthropists is not just money, the charity should be defined as - and the mobilization of private sector allocation of resources, including money, time, social capital and expertise to We have to improve the lives of the world.

The global elite is seeking to change the world, their approach is to a large amount of money and new ideas, business skills, marketing wisdom, beneficial to citizens and to mobilize the political link. All this will in some areas sounding the alarm. Well-known philanthropist George Soros hedge fund, a charitable organization in the role of being involved in a dispute. Philanthropy seems to be growing into a really hot "political potato."

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