Assignment: Do some research on TOMS and similar organizations. Focus on a few things such as explaining how they work and their goals. Try to form an opinion based on weighing the positives and negatives.
TOMS. They're not only fashionable, but when we buy one, a shoe gets donated to a poor kid in an underdeveloped country. It's a win-win-win situation; the consumer gets her shoes, the company makes money, and a child in an underdeveloped country also gets shoes. What can go wrong with that? There are actually several drawbacks that come along with in-kind donations.
First off, they damage the country's economy in the long run. Every time goods are shipped in for free, local companies that sell the same thing shut down, which also loses jobs for workers. One researcher, Garth Frazer looked into "Used-clothing Donations and Apparel Production in Africa" and found that over the period 1981-2000, there was a 50% decline in employment and a 40% decline in production.
Another problem created is dependency. When charities are constantly giving out peoples necessities, they are actually making them dependant towards these charities. It creates devastating psychological effects on those individuals who are provided with resources they simply do not need or could acquire without outside help. When such gifts are being given over time, the incentive to work is gone. The recipient would feel that they can depend on the donor for all their necessities. According to Adams and Amy Costello of Tiny Spark, a series of podcasts about philanthropy, Haitians started to rely on NGOs (non government organizations) for food and basic necessities.
Despite all of these drawbacks, in-kind donations are still good as a temporary aid - so long as they provide goods that the people can't obtain locally, or provide jobs for workers. One such company is Warby Parker, a glasses manufacturer that partners with local salespeople.
TOMS. They're not only fashionable, but when we buy one, a shoe gets donated to a poor kid in an underdeveloped country. It's a win-win-win situation; the consumer gets her shoes, the company makes money, and a child in an underdeveloped country also gets shoes. What can go wrong with that? There are actually several drawbacks that come along with in-kind donations.
First off, they damage the country's economy in the long run. Every time goods are shipped in for free, local companies that sell the same thing shut down, which also loses jobs for workers. One researcher, Garth Frazer looked into "Used-clothing Donations and Apparel Production in Africa" and found that over the period 1981-2000, there was a 50% decline in employment and a 40% decline in production.
Another problem created is dependency. When charities are constantly giving out peoples necessities, they are actually making them dependant towards these charities. It creates devastating psychological effects on those individuals who are provided with resources they simply do not need or could acquire without outside help. When such gifts are being given over time, the incentive to work is gone. The recipient would feel that they can depend on the donor for all their necessities. According to Adams and Amy Costello of Tiny Spark, a series of podcasts about philanthropy, Haitians started to rely on NGOs (non government organizations) for food and basic necessities.
Despite all of these drawbacks, in-kind donations are still good as a temporary aid - so long as they provide goods that the people can't obtain locally, or provide jobs for workers. One such company is Warby Parker, a glasses manufacturer that partners with local salespeople.
