Many Charities and Nonprofits Do Not Change the World

(p. A15) Opinion polls showing that present-day Democrats look more favorably on socialism than capitalism have prompted Tyler Cowen, an economics professor at George Mason University, to write what he calls a “love letter” to big business. His thesis: Corporations may lack heroic attributes, but they deserve more respect than they get.

. . .

Alongside the vilification of corporate capitalism has been a rise in the social status of nonprofits, as if the nonprofit label, by itself, signals both value and virtue. Mr. Cowen isn’t having it: He asserts that fraud is more prevalent in nonprofit organizations than in profit-making ones. What is more, “plenty of charities and nonprofits don’t actually change or improve the world or deliver any useful product at all, but rather simply continue as lost causes with no impact.”

Americans have a big stake in profits, as Mr. Cowen reminds us. “As of 2015, 55 percent of Americans had money invested in stocks . . . ,” he writes. “Even if you do not personally own many or any equities, there is a good chance your retirement fund or pension fund does.”

For the full review, see:

 

(Note: ellipsis between paragraphs, added; ellipsis internal to last paragraph, in original.)

(Note: the online version of the review has the date , and has the title “BOOKSHELF;‘Big Business’ Review: What Socialism Gets Wrong.”)

The book under review, is:

Cowen, Tyler. Big Business: A Love Letter to an American Anti-Hero. New York: St. Martin’s Press, 2019.

Kansas City Government Pours Bleach on Food for the Homeless

(p. A17) KANSAS CITY, Mo. — They unfurled colorful blankets on a grassy slope, and unloaded steaming trays of corn dogs, baked beans and vegetable beef soup. Every week for the past three years, the volunteers have gone to a park just outside downtown Kansas City with home-cooked meals for the homeless. They call it a picnic with friends.
But on a cloudy afternoon earlier this month, an inspector from the Kansas City Health Department showed up and called it something else: an illegal food establishment.
She ordered most of the food put into black garbage bags, bundled them on the grass and, in a move that stunned the gathered group, doused the pile with bleach.
Allen Andrews, who has been living on the streets for the past year, said he watched silently as the bleach was poured, thinking back to when he had a home. He remembered how he had sometimes poured bleach on trash he put out for collection, to deter rodents from getting into it.
“They treat us like animals,” Mr. Andrews, 46, said.

For the full story, see:
John Eligon. “‘Where Feeding the Needy Requires Both a Heart and a Permit.” The New York Times (Thursday, Nov. 22, 2018): A17.
(Note: the online version of the story has the date Nov. 21, 2018, and has the title “You Want to Feed the Hungry? Lovely. Let’s See Your Permit.” The online version says that the article appeared on p. A13 of the New York edition. It appeared on p. A17 of the National edition that I subscribe to.)

Entrepreneur Carr’s Philanthropy Harmed Mozambique

(p. C6) It is an old, old story. A wealthy man comes to town, promising change and a brighter future. He’s the expert. He knows best. Inevitably, it doesn’t exactly work out that way.
Stephanie Hanes, an American correspondent for the Christian Science Monitor, spent three years watching one particular version of that fairy tale unfold in central Mozambique.
The wealthy man was Greg Carr. An Idahoan, Mr. Carr had made millions first by selling voice-mail systems and then by running Prodigy, an early internet service provider. At age 40, he turned to philanthropy . . .
. . .
In “White Man’s Game,” Ms. Hanes outlines, in a nonpolemical way, the long history of Western involvement in Africa’s wilderness.
. . .
Turning to the present day, Ms. Hanes takes World Wildlife Fund, Nature Conservancy and other Western groups–known as Big Green–to task for their conservation colonialism.
. . .
She . . . points out that they are a bit cynical. “The conservation industry mirrors the humanitarian assistance industry,” she writes, “with alarmist pledge drives, heart-stirring photos and admonitions to ‘act now!’–all to be repeated for the next grant cycle.”
. . .
It is clear from Ms. Hanes’s account that a complex interplay of social, political and economic matters affected Gorongosa, not just one man’s ambition. The imported elephants inevitably roamed outside the park and into nearby towns, damaging crops and perhaps killing a villager. Mr. Carr’s tree planting, a laudable goal on the surface, was seen negatively by the people there because, culturally, tree planting was a way of marking one’s territory. When visiting a prominent local leader, Mr. Carr arrived in a red helicopter, oblivious to the fact that, in Gorongosi culture, red is the color of violence. For locals, Mr. Carr was the latest in a long line of outsiders invading their land. He destabilized rather than restored.
In the West, Mr. Carr’s work catalyzed praise: a glossy piece on Gorongosa in National Geographic by the noted biologist E.O. Wilson, a profile in the New Yorker. But the reality on the ground was different. Few tourists came to Gorongosa, and a flare-up of civil-war tensions led to violence. Overall the 150,000 Mozambicans who lived in the district, according to Ms. Hanes, saw little measurable improvement in their lives. Park staff even tortured suspected poachers.
In the most powerful scene in the book Ms. Hanes observes Mr. Carr and his associates staring at a map of Mozambique and contemplating expanding the park borders to incorporate a vast swath of land so that animals could migrate again. They wanted to rewild central Mozambique. It was just another example of the “generations of white man standing around maps,” observes Ms. Hanes. They never mentioned the millions of people who lived in those lands.

For the full review, see:
James Zug. “The Do-Gooders’ Playground.” The Wall Street Journal (Saturday, Aug. 5, 2017): C6.
(Note: ellipses added.)
(Note: the online version of the review has the date Aug. 4, 2017.)

The book under review, is:
Hanes, Stephanie. White Man’s Game: Saving Animals, Rebuilding Eden, and Other Myths of Conservation in Africa. New York: Metropolitan Books, 2017.

Hershey Gave the World Chocolate Candy and a Single, Very Rich, Residential School

(p. A19) In the early 20th century, Milton Hershey transformed chocolate from a luxury good to a working-class staple. It made him a fortune, which he used to establish Hershey, Pa.–a model company town 100 miles west of Philadelphia and the self-proclaimed “sweetest place on earth.” He also established an orphanage, the Milton Hershey School, to provide housing and education primarily for children from the area.
. . .
Other early-20th-century philanthropists, such as Andrew Carnegie and John D. Rockefeller, left behind massive general-purpose foundations that underwrote experiments in medicine, science and higher education, Mr. Kurie observes, while Hershey “gave us chocolate candy and a single residential school in south-central Pennsylvania that remains little known outside the region.”
. . .
. . . , [Mr. Kurie] suggests that the trust can be viewed as a model of philanthropic responsibility, even by institutions without a devoutly local focus. Mr. Kurie’s most significant contribution here is to draw attention to philanthropy’s “external stakeholders,” those people and organizations “who are neither agents nor subjects of philanthropy but who are, for better or worse, caught up in its activities.” He demonstrates how a philanthropic institution can continue to reflect a founder’s vision while shaping and being shaped by the community that grows up around it, one whose bonds can often be bittersweet.

For the full review, see:
Benjamin Soskis. BOOKSHELF; A Man, a Brand, a School, a Town.” The Wall Street Journal (Monday, March 26, 2018): A19.
(Note: ellipses, and bracketed name, added.)
(Note: the online version of the review has the date March 25, 2018, and has the title “BOOKSHELF; ‘In Chocolate We Trust’ Review: A Man, a Brand, a School, a Town.”)

The book under review, is:
Kurie, Peter. In Chocolate We Trust: The Hershey Company Town Unwrapped. Philadelphai, PA: University of Pennsylvania Press, 2018.

Bezos to Donate $2 Billion for “Montessori Inspired” Preschools

(p. A10) When Jeff Bezos announced last week that he and his wife, MacKenzie Bezos, would create and operate a national network of Montessori preschools, few were more surprised than Montessori organizations and leaders themselves.
In a statement released on Twitter, Mr. Bezos, the chief executive of Amazon and the wealthiest person in the world, said the preschools would be “in underserved communities.” He continued, “We’ll use the same set of principles that have driven Amazon. Most important among those will be genuine, intense customer obsession. The child will be the customer.”
News of the initiative, called the Bezos Day One Fund, came with an eye-popping commitment: $2 billion, some of which will support organizations that help homeless families.
. . .
Montessori’s unique combination of freedom and rigidity — a famously “child-centered” practice with a host of rules and restrictions — can make its classrooms look drastically different from traditional ones.
Students span a three-year age range, say, between 3 and 5. Dressing up or talking about fairies or superheroes is not allowed. Instead of a play kitchen, there may be a real one, where students might pour their own juice into a glass cup, not a plastic one, so that they will learn the lesson that a glass can break if they are careless.
And every day, students get three-hour blocks of unscheduled, uninterrupted “work” time — the word “play” is not used — in which they are free to choose their activities, whether finger-painting or sorting wooden pegs.
. . .
With little else to parse, Montessori leaders pored over Mr. Bezos’ brief statement, which described the planned schools as “Montessori-inspired.” The term “Montessori” is not copyrighted, and any school can choose to describe itself as such.
. . .
Mr. Bezos attended a Montessori preschool in Albuquerque in the 1960s and is one of several tech industry leaders with personal ties to the method. The Google founders, Sergey Brin and Larry Page, have attributed some of their success to their Montessori educations. Dr. Montessori’s reframing of child’s play as “work,” driven by the child’s choices and interests, is, in many ways, a natural fit for Silicon Valley’s culture of founder-driven entrepreneurship and innovation.

For the full story, see:

Dana Goldstein. “‘Money, but Few Details, In Bezos Montessori Plan.” The New York Times (Saturday, Sept. 22, 2018): A10.

(Note: ellipses added.)
(Note: the online version of the story has the date Sept. 21, 2018, and has the title “‘Jeff Bezos Cites a Big Number, but Few Details, in Plan for Low-Income Montessori Preschools.”)

“Entrepreneurial Capitalism Takes More People Out of Poverty Than Aid”

(p. A15) Some 44% of millennials believe they do more to support social causes than the rest of their family, according to the 2017 Millennial Impact report. If you’re volunteering at shelters or working for most nonprofits, that’s all very nice, but it’s one-off. You’re one of the privileged few who have the education to create lasting change. It may feel good to ladle soup to the hungry, but you’re wasting valuable brain waves that could be spent ushering in a future in which no one is hungry to begin with.
There’s a word that was probably never mentioned by your professors: Scale. No, not the stuff on the bottom of your bong or bathtub. It’s the concept of taking a small idea and finding ways to implement it for thousands, or millions, or even billions. Without scale, ideas are no more than hot air. Stop doing the one-off two-step. It’s time to scale up.
. . .
If you don’t think I’m credible, you too can listen to Bono. As he told Georgetown students a few years ago, “Entrepreneurial capitalism takes more people out of poverty than aid.” Of course it does. Want to change the world? Stop doing one-off volunteering and scale up.

For the full commentary, see:
Andy Kessler. “Advice to New Grads: Scale or Bail.” The Wall Street Journal (Monday, May 21, 2018): A15.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date May 20, 2018.)

The Only Duty of a Firm “Is to Produce Profits”

(p. B1) On Tuesday [January 16, 2018], the chief executives of the world’s largest public companies will be receiving a letter from one of the most influential investors in the world. And what it says is likely to cause a firestorm in the corner offices of companies everywhere and a debate over social responsibility that stretches from Wall Street to Washington.
Laurence D. Fink, founder and chief executive of the investment firm BlackRock, is going to inform business leaders that their companies need to do more than make profits — they need to contribute to society as well if they want to receive the support of BlackRock.
. . .
(p. B3) Companies often talk about contributing to society — sometimes breathlessly — but it is typically written off as a marketing gimmick aimed at raising profits or appeasing regulators.
Mr. Fink’s declaration is different because his constituency in this case is the business community itself. It pits him, to some degree, against many of the companies that he’s invested in, which hold the view that their only duty is to produce profits for their shareholders, an argument long espoused by economists like Milton Friedman.
“What does it mean to say that ‘business’ has responsibilities? Only people can have responsibilities,” Friedman wrote, almost rhetorically, back in 1970 in this very newspaper. “Businessmen who talk this way are unwitting puppets of the intellectual forces that have been undermining the basis of a free society these past decades.”

For the full commentary, see:
Sorkin, Andrew Ross. ”DEALBOOK; A Demand For Change Backed Up By $6 Trillion.” The New York Times (Tues., JAN. 16, 2018): B1 & B3.
(Note: ellipsis, and bracketed date, added.)
(Note: the online version of the commentary has the date JAN. 15, 2018, and has the title ”DEALBOOK; BlackRock’s Message: Contribute to Society, or Risk Losing Our Support.”)

The Milton Friedman classic article mentioned above by Sorkin, is:
Friedman, Milton. “The Social Responsibility of Business Is to Increase Its Profits.” The New York Times Magazine (Sun., Sept. 13, 1970): 32-33, 122, 124 & 126.