Toxic Charity: How Churches and Charities Hurt Those They Help— review and commentary

ToxicA friend who works on the staff of a large church recommended this book to me, and while it lacks sufficient support for some of the concepts, the principles are sound. Basically, the title says it pretty well—whether just throwing money or a week of unpaid labor at poverty—this act of charity might do more harm than good.

Author Robert D. Lupton has plenty of experience in urban ministry, and he cites many examples from his experience in Atlanta, Georgia, which is where he lives and works. But, as I have seen lots of churches gather a group of volunteers for week long “mission trips” I was fascinated by the story of a church in Mexico that was painted six times during one summer, by six different sets of volunteers. Indeed, what the author terms “religious tourism” is big business. He states that in 2005, $2.4 billion was spent by 1.6 million Americans, who traveled abroad for short term mission trips. My favorite statistic: “The Bahamas, it is estimated, annually receives one short-term missionary for every fifteen residents.” Okay, I have never traveled abroad on a mission trip, but the Bahamas sounds like a great place to visit. (My daughter mentioned knowing of a local church that did a mission trip to Ireland. Sounds heavenly!)

Lest readers get the idea that all Lupton does is make the good hearted look either mis-guided or just plain stupid, he does mention that many people set out on these trips with good intentions. Then he explains that in the third world, a little bit of money spent properly can do quite a lot. He explains the use of “micro loans” which can give a struggling person a needed hand up. For example, a $50 loan to a woman in Nicaragua allowed her to buy a sewing machine so she could ramp up her production of baby clothes. Once she paid off the loan, she still had the increased earning capacity.

In the U.S. many churches and other charities give away certain items. One example was giving holiday presents to needy families, but the fathers in such situations are often embarrassed that they can’t match the generosity of the well meaning givers, and are thus emasculated in front of their wives and children. Another example was a food bank, wherein the recipients had come to view the handouts as entitlements, which the author then contrasted with a food co-op, where members paid a small ($3) membership fee, and the members then gathered food from free or discounted sources, set their own rules for distribution, and so forth. The co-op helped the members but did not demean them or destroy their work ethic.

Toxic Charity is a bit controversial, but the U.S.A. is one of the most generous nations which has ever graced this planet. Unfortunately, just throwing money at problems can actually make things worse. This book is a must read for anyone who is involved in charity work, faith based or not, because it explains the problem but gives some good guidelines for better ways to help without hurting the recipient or wasting effort and money.

Why Fair and Square Pricing Fails

Purple and White Speech Bubble Clothing Logo-2I like for the price to be the price. But, I must be one of the few people who think that way. Fair and square pricing works for me: I can budget for what I need to purchase, and know when it is okay to splurge a bit. However, I have a dear friend who won’t buy anything unless she negotiates a better price. This practice is downright embarrassing at times. Recently, we were in a charity thrift store and she saw a large ceramic vase filled with fake flowers. (I know, taste varies.) Anyway, it was priced fairly, but she stood in line to ask a harried clerk to lower the price by $5. The clerk said, “The price is the price.” My friend walked away. “It’s a charity,” I reminded her. As we got into the car, my friend made up some excuse about the quality of the item. But, I know her. No discount, no sale is her motto.

I’ve sold items on eBay for almost a decade. But, recently, I’ve been rather frustrated with the “Buy it now or best offer” feature on eBay. As a seller, I prefer to list an item at the price I want for it, and my potential customer can pay for the item and the shipping (which isn’t free, so I never pretend that it is) or not. However, if sellers don’t activate “best offer” when creating the listing, eBay will do it later, and before long, I start getting half price offers. Yep, the default “best offer” setting is literally half price. I hate telling customers, “no.” And, I have learned that counter offers seldom result in a sale. Lately, I have been listing items a couple of dollars more than I normally would ask, then setting the best offer for the real price. Yes, the whole thing bothers me, but many, many shoppers want to feel that they got a discount, especially on really low priced items. I’ve literally gotten an offer of $2 on a genuine leather designer handbag.

And, this gotta have a discount mentality is not just for used items, such as the pre-owned books and garments that I generally list in my eBay store (The Alternative Article.) Remember the absolute disaster of “Fair and Square” pricing at J.C. Penney? Although I am not particularly fond of that merchant, I really liked their pricing when that experiment was underway. Apparently, I was alone, however. J. C. Penney customers stayed away in droves until the management jacked up the prices and paid newspapers to print coupons so customers could “save” 40% off.

It’s psychology. And it sucks.