Week 3 EOC: Making Money for Good

  Kedai Balitaku, which usually goes by the name KeBal, aims to become a chain of street carts selling low-priced healthy food to children.

KeBal is a social business — one that exists primarily to achieve a social goal.  It’s easy to see why the social businesses model has become a popular strategy for attacking the problems of the poor.  The impulse to create a business rather than employ traditional nonprofit work comes partly out of the notion — right or wrong — that charity creates dependency and that without the discipline of the market it often doesn’t work.  Development groups, moreover, are always looking for ways to make their projects live on once they’ve moved to other things.  Creating a business is one solution.

“We were trying to get away from traditional model where everything is implemented by an N.G.O. (a non-governmental group) or by the government, and everything is dependent on the next round of funding,” said Sasha Muench, Mercy Corps’ economic development adviser.  “As long as businesses are profitable, they have an inherent sustainability factor.”

The Path From Charity to Profit

By TINA ROSENBERG 

http://opinionator.blogs.nytimes.com/2011/05/26/the-path-from-charity-to-profit/

the whole idea of building a 

business that help's charity is that there is no middle man. 

In 2010, 20 chief executives passed that threshold, compared with 15 the previous year. At least three executives made that much in 2011. They were:

• Roxanne Spillett, head of Boys & Girls Clubs of America, who made more than $1.8-million.
• Glenn Lowry, chief executive of the Museum of Modern Art, who earned $1.2-million.
• Edwin Feulner Jr., leader of the Heritage Foundation, who was paid nearly $1.1-million.

what happens is that charitable organization are making a profit on people that donate money for a worthy cause. i'm not saying that these organization don't give to people in need, but when the take money and pay themselves enormous salaries, it becomes more a charity for profit than the other way around.  
the company "KeBal ", based in India is basically making healthy food affordable to the poor who can't afford healthy food in the first place. they are creating  jobs for people and turning parts of there profits to build there business and the other part to help feed there people.  a company grows, people are working and people are being feed a healthy meal where they couldn't afford at one time. the only thing that happens is no one person is becoming rich from someone giving money to help the less unfortunate.

“With an N.G.O. you get the funds and implement the project, and you get your salary whatever happens,” said Sean Granville-Ross, Mercy Corps’ Indonesia country director.  “It’s tough to find people who think like a business and not an N.G.O.”

“There’s always the dichotomy,” said Muench.  “You’re thinking about profits and sustainability, and you’re thinking about the humanitarian issues.  It can become an internal battle.  We’re always inclined to shift back into humanitarian need but have to remember that to be sustainable you have to have a hard business mentality.”

http://opinionator.blogs.nytimes.com/2011/05/26/the-path-from-charity-to-profit/