Freakanomics Author on Wealthy Donors

If you delighted in the uncommon insights of Freakonomics, you will love what the New York Times "Freakanomics" blog has to say about wealthy donors he has been invited to counsel. In a recent post entitled, The Price of Advice: Chronicles of a Young Philanthropist, Part III, Sudhir Venkatesh writes:

...the donors had very rigid ideas concerning the capacity of poor people to change their behavior. When they met poor families (in Chicago and New York), they expected that their money would have magical powers. I exaggerate only slightly.

They believed that poverty was largely a result of resource deficiencies and organizational inefficiencies: if the poor had more money and their service providers could simply manage their giving more efficiently, change would happen. None placed much emphasis on feelings of self worth, the long-term nature of behavioral change or, most important, that staying above water is itself an accomplishment for a poor household. Everyone modeled their expectations after their family business or other corporate workplaces where they saw the “bottom line” motivate people to meet certain standards of achievement.

After a year of direct exposure to and dialogue with people living in poverty...

The three individuals continue to operate family foundations, but they all reacted differently to the intense exposure to daily poverty. The one consistent outcome is that each remains true to the philosophy of entrepreneurially-oriented investing: i.e., the use of incentives, emphasis on individual responsibility, pursuit of investment-oriented gains on charitable giving, etc.

I might point to one other result of this process: the donors came away with a much better sense of their own assumptions/stereotypes. They had to think as poor people do, even as they tried to change poor people’s thinking.

I am currently working on a new video web series called "Inside the Giving Side" that shines a light on the inner working of all-too-insulated foundations. Reading this post reminds me that what is needed, even more, is honest dialogue between donors and the targets of their charity. Few of us like to be reminded of what we don't know and while wealthy donors have resources aplenty, they are likely to know little or nothing of real poverty and what it takes to lift communities out of it.

Susan Herr

Posted at 1:31 AM, Jul 11, 2008 in Permalink | Comments (2)


Comments

Attn: Contributors, I have just read your site from a Google keyword. While looking for charity organizations. I have zero to limited income, not because of any lack of drive or years of bad behavior, and bad habits, but because I had lost employment, then gotten sick and could not work for awhile, was evicted because I couldnt pay bills and utilities, etc., was hospitalized more than once,and now on dialysis that takes up alot of time three days a week, (that otherwise hinders me from getting work, because of the conflicts in hours)When prospective employers find out Iam on dialysis and because of age (59), they think I will get sick on them and not hire me.As well as the fact I have no transportation to get to the available work in the evening hours. I have tried since being on this dialysis to get work that seems to be hard for me. Where I live is a small town with limited resources and opportunities were most people who have secure and good work, work outside of here, and have transportation. I walk everywehere I go and relatives will not and cannot provide transportation for me.At times I even have a problem (financially)getting my prescriptions filled. That has caused at times my blood pressure to go very high. I want to be self sufficient again and have my own and not depend on others as I have had to do since the chain of events.I have never used drugs and dont have a criminal record. I have two years (in the past) of college, and was planning a business, and writting a book at the beginning of my economic and health problems. I have determination to achieve and accomplish things in life, especially since Iam getting older.I have no time to waste. So you see some people who are "poor" trully want to get out of poverty and be productive in society but circumstances put them were they are. Lastly do you know of any donors or charitable organizations that can assist me in everything from getting the money to even get a used car or even donate a car to me, to financial grant to pay in advance 3-4months of rent for me to get my own place to live, until I am able to survive from my own efforts, as well as pay my large medical bills and eventually money to publish and distribute my book when completed, as well as start up money for any business I start. Please let me know. Thank you, From R.Smith Email: r_alexander88@hotmail.com

Posted by: richard smith

Attn: Contributors, I have just read your site from a Google keyword. While looking for charity organizations. I have zero to limited income, not because of any lack of drive or years of bad behavior, and bad habits, but because I had lost employment, then gotten sick and could not work for awhile, was evicted because I couldnt pay bills and utilities, etc., was hospitalized more than once,and now on dialysis that takes up alot of time three days a week, (that otherwise hinders me from getting work, because of the conflicts in hours)When prospective employers find out Iam on dialysis and because of age (59), they think I will get sick on them and not hire me.As well as the fact I have no transportation to get to the available work in the evening hours. I have tried since being on this dialysis to get work that seems to be hard for me. Where I live is a small town with limited resources and opportunities were most people who have secure and good work, work outside of here, and have transportation. I walk everywehere I go and relatives will not and cannot provide transportation for me.At times I even have a problem (financially)getting my prescriptions filled. That has caused at times my blood pressure to go very high. I want to be self sufficient again and have my own and not depend on others as I have had to do since the chain of events.I have never used drugs and dont have a criminal record. I have two years (in the past) of college, and was planning a business, and writting a book at the beginning of my economic and health problems. I have determination to achieve and accomplish things in life, especially since Iam getting older.I have no time to waste. So you see some people who are "poor" trully want to get out of poverty and be productive in society but circumstances put them were they are. Lastly do you know of any donors or charitable organizations that can assist me in everything from getting the money to even get a used car or even donate a car to me, to financial grant to pay in advance 3-4months of rent for me to get my own place to live, until I am able to survive from my own efforts, as well as pay my large medical bills and eventually money to publish and distribute my book when completed, as well as start up money for any business I start. Please let me know. Thank you, From R.Smith Email: r_alexander88@hotmail.com

Posted by: richard smith