Dan Pallotta: The way we think about charity is dead wrong


Philanthropy is the market for love. And love is something which money can’t buy.

Areas of Discrimination:

  1. Compensation – the more value you produce the more money you make.
  2. Advertising and Marketing – People think money spent on advertising couldn’t help bring 100’s and 1000’s of dollars to help the needy.
  3. Taking of Risk in pursuit of generating new ideas for revenue. (Taking risk on new revenue ideas)
  4. Time – Patients, for long term objective to build market dominance.
  5. Profit to attract risk capital. For profit can Pay profits in order to attract capital for their new ideas. But you cant pay profits in a non profits sector, so the for profit sector has a lock on the multi trillion dollar capital market, and the non profit sector starve for growth and risk in idea capital.


Overhead is thought of being negative. But its not. There is an assumption that overhead is not part of the cause. and it forces organisations to go without the overhead things which they need to grow.