On 10 Apr 2013, at 12:25, Deepak Shenoy <[email protected]> wrote:

> On Wed, Apr 10, 2013 at 12:19 PM, Ingrid Srinath
> <[email protected]> wrote:
> 
>> The only issue I have with that logic is that it prevents any organisation 
>> from achieving sufficient scale to have significant impact. The charity 
>> sector may be the only one I know where success in terms of growth/size is 
>> penalised by those who support the sector.
> 
> Is there a need for a charity to grow to that scale if it weren't
> actually trying to cut costs substantially? Yes, some costs are cut by
> scale but I've yet to find a charity in India who has an aggressive
> goal to keep costs at 20% or less even in the next five years.
> 
> Scale in this sector hardly seems to have the kind of impact one
> thinks of - even the biggest charities struggle to do the
> on-the-ground things (and usually outsource to more efficient, smaller
> charities). If all they're doing is being middlemen, then everyone
> will question the need for them to exist.
> 
> With the advent of the net and the ability for the smaller folks to
> highlight what they do, like a Project Why, I believe the
> large-charity model will have to be done by the
> large-businessman-who-donates like the Buffetts and the Gates'. (also
> the private charity uses a tax loophole to pretty good effect).
> 

One via media that works is organisations who get their start-up costs, 
investments funded by foundations allowing contributions from the public to be 
used almost entirely for programmes.

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