I just skimmed. I like the idea. That plausibly only works for sufficiently memetically fit charities (which varies based on the product/service), but that’s probably still a significant number.
If this is thesis is true, then it means donors (of charity that have companies with a consumer based that is memetically fit for that charity) should buy companies and transform them into Profit for Good (at least assuming they’re able to hire a good CEO, and maybe providing other incentive-based pay for the CEO if they don’t have shares), because this would increase the valuation of the company, and so increase their donation impact.
Running the organization directly as a charity would also have other advantages, notably tax benefits and unlimited H1B visas.
I would push back a bit on your notion that it would only work with memetic matching. Especially if the PFG model were to take off, it may be pretty cheap and effective to signal that a company works for charities instead of shareholders. For instance, one of our thoughts with the Consumer Power Initiative is that PFGs could use a color-variant of our logo to signify a category of charity (maybe red for Global Health and Development, yellow for animal welfare, green for fighting environmental degradation). Essentially though, helping any of those causes, if you’re not paying more, or otherwise sacrificing, should give you an edge regardless of whether there’s a thematic match.
I also do not know about PFGs acting as charities themselves… I think charities in most places are limited in the degree to which they can participate in the economy this way… But in any case, a company with charities in the equity position can do most of what others can do. This is why I think this model will take off eventually. I just hope EA takes advantage of the model so that effective charities enjoy the fruits of our economies.
Thank you for adding this to those sources. I will take a look at the other entries!
I just skimmed. I like the idea. That plausibly only works for sufficiently memetically fit charities (which varies based on the product/service), but that’s probably still a significant number.
If this is thesis is true, then it means donors (of charity that have companies with a consumer based that is memetically fit for that charity) should buy companies and transform them into Profit for Good (at least assuming they’re able to hire a good CEO, and maybe providing other incentive-based pay for the CEO if they don’t have shares), because this would increase the valuation of the company, and so increase their donation impact.
Running the organization directly as a charity would also have other advantages, notably tax benefits and unlimited H1B visas.
I’ll share on The Economics of Doing Good (Effective Altruists) and add on Cause Prioritization Wiki.
Hi Mati.
Thanks for your thoughts.
I would push back a bit on your notion that it would only work with memetic matching. Especially if the PFG model were to take off, it may be pretty cheap and effective to signal that a company works for charities instead of shareholders. For instance, one of our thoughts with the Consumer Power Initiative is that PFGs could use a color-variant of our logo to signify a category of charity (maybe red for Global Health and Development, yellow for animal welfare, green for fighting environmental degradation). Essentially though, helping any of those causes, if you’re not paying more, or otherwise sacrificing, should give you an edge regardless of whether there’s a thematic match.
I also do not know about PFGs acting as charities themselves… I think charities in most places are limited in the degree to which they can participate in the economy this way… But in any case, a company with charities in the equity position can do most of what others can do. This is why I think this model will take off eventually. I just hope EA takes advantage of the model so that effective charities enjoy the fruits of our economies.
Thank you for adding this to those sources. I will take a look at the other entries!
yeah, could be a nonprofit but probably not a charity