3 ms·
It's worth noting that "non-profit" doesn't always translate to charity. Microfinance, for instance, exists as a whole spectrum of quasi-for-profit operations.
by carbon8 17y ago
It's worth noting that "non-profit" doesn't always translate to charity. Microfinance, for instance, exists as a whole spectrum of quasi-for-profit operations. And on the strictly non-profit side you have things like ROSCAs, one of the foundations of microfinance, which are micro-level, semi-formal, non-charitable "non-profit" groups that resolve a number of different financial issues for participants, similar to tiny credit unions, and are neither charitable nor reasonably mappable to "companies."
The whole impetus behind the growth of the microfinance movement is that traditional banking simply can't serve these groups. There are also numerous non-obvious major core issues involved, such as how gender roles have a huge impact on microfinance or why group lending is so prominent.
In short, the reason it's not simply handled by companies is because it's just not that simple.
- Dove 17y agoOh, indeed, I'm well aware that there are for-profit philanthrophic ventures and questionably profitable non-profit groups. I don't mean to suggest that it is simple. Indeed, groups that adopt a hybrid, hard-to-classify approach often strike me as the healthiest. I am very fond of certain microloan groups or folks like TechnoServe. But I do advocate approaching philanthropy as a consumer, however the group you're working with is legally classified. Be honest with yourself about what you're buying -- even if what you're buying is a warm fuzzy feeling. Perhaps especially in that case.