Idea of the Day: how to fix social entrepreneurship

I believe in philanthropy, particularly for the truly impoverished, but I don’t have too much faith in top-down economics of any form (charitable, governmental or otherwise).

Last night I listened to a great presentation from Board members of the American Association for the Social Advancement of India (AASAI). They are a non-profit primarily focused on subsidizing the cost of education, social welfare and healthcare. As with most charitable organizations, they need a better plan for raising capital.

Here’s my idea:

1. Custom print Liberty Dollars with a AASAI logo.

2. Sell $20 pieces for $25 to anyone who wants to make a ‘charitable’ contribution. This could include individuals, organizations, school sponsorships, etc. The purchasers immediately become investors as they now own a tangible asset that could very well appreciate in value over time.

3. Have the charitable recipient (school children in India, for example) create something of value. This could be a picture, poem, letter, carving, etc. The actual value is irrelevant. The point is to teach them how to produce, while providing an opportunity for them to develop healthy self-esteem. (Don’t you feel better for earning something than you do when accepting a hand-out?).

4. Use the profits generated by the currency sales to purchase these products from the children.

5. Take the product they create and sell it with the support of sponsor schools, art galleries, museums.

6. Reinvest the profit from these product sales back into the system.