Many business owners try to share their wealth by giving to charities. However, all too frequently the charities openly advocate economic and social policies opposed by the donors. Some recipients of the business owner’s gifts even undermine the very free enterprise system that made the donation possible. And, when business owners set up their own Charitable Foundations, they are met with more problems:
- the IRS and some States are starting to impose “politically correct” giving standards, and
- Foundations – even those founded by pro-free marketers – tend to be taken over by anti-capitalists within a short time after the death of the foundation founder.
CHALLENGE #2: EFFECTIVE GIVING
Many philanthropists at the very least make their giving less effective than it could be, or even, in some cases, wasting their giving, by failing to test their charitable efforts against business standards of cost effectiveness. Moreover, under the theory that if you give a person a fish, he will eat for a day, while teaching him to fish will allow him to eat for a lifetime, the most effective “giving” may be to support individuals in profit making efforts through venture capital and/or micro lending endeavors (Mohammed Yunus’ Grameen Bank is perhaps the best example).
THE SOLUTION: Enlightened Capitalism comprehensively addressed both challenges. It robustly defends free markets and will:
- maintains donor intent by keeping the giving in the hands of the business donor,
- keeps the government out of the giving process, and
- makes the giving more effective, because the business considers the giving an “investment” and test the giving against results and cost-effectiveness.