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ChristianKl comments on Can You Give Support or Feedback for My Program to Alleviate Poverty? - Less Wrong Discussion

10 Post author: Brendon_Wong 25 June 2015 11:18PM

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Comment author: ChristianKl 26 June 2015 12:02:21PM 5 points [-]

I did not consider a for-profit version of the idea because the project itself was supposed to be charitable in nature.

That's a mistake.

On of the core ideas of effective altruism is to focus on effective structures instead of focusing on signaling that one is charitable.

Comment author: Brendon_Wong 30 June 2015 09:15:49AM *  0 points [-]

I'm having trouble seeing how a for-profit corporation would create more good and be a more effective structure in this case. A non-profit organization can operate without income tax and attract donations which can be tax-deductible to donors. A for-profit organization could get investment capital, but I think it's highly unlikely I would be able to find any interested investors, and it otherwise performs worse compared to a non-profit with the same business model.

Comment author: ChristianKl 30 June 2015 11:38:09AM 0 points [-]

You are likely underrating the difficulty of raising charitable funds.

If the business model doesn't work for a for-profit it's unlikely from an outside view to think that you create much value in a nonprofit structure.