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Could this be a Solution to Economic Crisis and the Future of Business?

The Importance of Philanthropy and The Rise of The Nonprofit Organisation

It takes an evolved individual to recognise that the only response that will solve this economic crisis is to give money away. The reasoning is simple; if you do not reinvest into the roots of society then its flower will surely whither.

There are any number of phrases and sayings that reinforce this, but a purely economic reasoning that underpins this is; if less money comes down from the top of the wealth pyramid than goes up, then there is going to be a ‘cash flow” problem.

The people at the bottom can’t create wealth or employment unless they are given something to work with, and if the governments print money it disappears in overhead, loan repayments and spiralling inflation, filtering upwards into the ‘safe’ commodity markets. Nature hates imbalance in all things and will always seek to achieve an equilibrium, the greater the imbalance, the bigger the impetus is to push back, which is why nonprofit organisations are the fastest growing sector in business today.

There is recognition here that there is significant pressure on decision makers in the private sector to provide substantial returns for their investors and this necessarily leads to questionable decisions being made. Banks who repackage high risk loans, energy companies who falsify oil reserves or cut corners with safety, food and drink manufacturers who bulk with addictive and harmful chemicals, you name it. The irony is that this does not necessarily represent greed as many of the share holders are pension funds trying to provide security for the old at the cost of a future for the young.

Nonprofits are free of these pressures, because of donations and accounting rules all transactions are transparent. Salaries are open to scrutiny and bonuses non excitant. Other businesses find that they prefer to deal with the nonprofit organisation as there are no hidden agendas a trust reputation relationship is easier to establish; equally there may even be the possibility of positive PR!

The lesson of the Chinese monkey trap is clear; the monkey is trapped by his desire to acquire the fruit and his inability to let go of it when it is in his grasp. It takes a lot of courage to trust and let go, by some it is called “a leap of faith”.

“Be the change you want to see

– Mohandas Mahatma Ghandi

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