Stossel - 12/20/12 - Good Giving
Stossel looks at the world of philanthropy from a libertarian perspective
- Duration 41:11
- Date Jan 4, 2013
Stossel looks at the world of philanthropy from a libertarian perspective
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It's -- sees it makes us feel good.
That's why big stars do.
Concert to help storm victims.
This does help yeah.
But I bet greedy business trying to make more money help people even more Ted Turner didn't like that idea.
Forty have you been -- -- me about -- different now that's what that little white woman man there's nothing more to say goodbye walking up.
Pat Day now there are new ways to -- here.
The last piece of the puzzle is going to need help so where should you here.
That's our show.
-- Share in the still.
The media obsess about what celebrities do that last week big stars saying and raised more than thirty million dollars for hurricane CN leaving.
Good for them.
But this is not charity is most people know -- most charity is quieter.
Of Americans give almost a thousand dollars to their churches that's the most common form of charity.
Followed by giving to schools.
And then charities meant to help the poor.
But how do you know securities with -- that they'll spend your money well.
Madonna's Raising Malawi charity spent three million dollars.
But had nothing to show for it but a nice car and golf membership for the program's director.
Most charities don't do that but again how do you know.
Howard -- six studies philanthropy at the Manhattan institute.
Melissa Berman -- helped give away three billion dollars as head of Rockefeller philanthropy advisors.
David -- from the nonprofit that uses the profit motive to try to help jailed teenagers go straight so.
David the profit motive what's this new form of charity.
Well let's be clear it's not simply to profit motive we also happily accept donations.
However saying that Goldman Sachs has issued the first the nation's first social impact bond and -- -- little lead recipient on that.
Social impact on proud to be -- The social impact bond this means that Goldman Sachs puts up ten million dollars correct and says we think -- group.
Can -- help -- young.
Convicts not become.
-- -- the social impact -- effort.
Is to say let's take people who know how to bare -- kind of test effectiveness.
-- -- They can look at the model that can look at what's being presented carefully and if it works Goldman gets money back with the -- -- And if it doesn't they -- at the news and significant portion of so.
They look -- your group and they think you could help these kids and if it works is defined by some measure the mayor of makes I guess.
-- pay you back.
But -- golden back plus 45%.
While the measure is whether these kids go back to jail.
So Melissa you look at charities you've given away three billion box that side must be not all by myself out back.
So is this an exciting new development.
This is so one of the most exciting new ways to think about how philanthropy can make change happen.
And whether you're thinking about philanthropy in the traditional -- -- definition of just giving away money.
And hoping for the best for if you're thinking about philanthropy.
As a way to use the money to invest for social benefit there's a whole range of options that people have now and it used to be -- give away money hope for the best.
This is no longer cool among rich people now they wouldn't they want a new measurement.
That's right they wanna have a stance that their money is going to be achieving results and they want to be part of tracking what's working.
And they want to suck start to see things happen.
Faster than they have been.
And it in addition to demanding standards is -- this going on now there's a new competition among rich people.
Yeah maybe I'm doing good for people it's from our point of view this as a really virtuous cycle.
I'm there's something -- you you can think of it almost as a global culture of giving that's developing among the top Echelon of wealth holders all what around the world.
They see Asia I thought it was -- -- -- together the Forbes 400 list this year.
Was all about what we're pretty sure right exactly worth throwing a lot of us forget at wall to see what rules -- And -- you -- you don't throw spaghetti you do something else.
Well we have a Manhattan yesterday program to give awards to good social entrepreneur who are we -- to focus on organizations that are working.
Outside of government because we think.
Traditional civil society is the -- people use.
Have more flexibility.
Than those who are government contractors that's the big change that's happened to charities in the last generation.
They used to be independent but recently they've become contractors should the government not exclusively but a lot and that's why you need the social impact bonds and things like that.
To hold them accountable.
Make sure they're not make -- off the money I'd rather have -- spend the money than government but if government gives them the money.
They get captured if government is giving them the money taxpayers want to know that they're getting something for it entrant and recently.
These different social service agencies they have a good cause and so what we should get more because our cause is good which is really different than.
We have kids not going back to jail -- we can show results Mark Zuckerberg.
Feeling guilty -- after the movie -- social network gave a hundred million dollars to Newark's public school system.
I would -- that it's just throwing more money down the drains giving it to the government unions that wrecked the school system in the first place so how do you counsel people.
But I think the first thing we say to them is don't -- the problem fund the solution.
That's the first thing what's that mean what that means is you you see something terrible in the world you see poverty.
In your community you -- poverty far far away.
You have to say to yourself and not just gonna give money to an anti poverty organization.
I'm gonna give money to an anti poverty organization.
That has a way of trying to tackle the issue that -- Leave them but how do you let's go to work at least -- Goldman Sachs put up their own money there are betting on him I don't know.
-- I don't know why you're gonna given me yoga and meditation art and music therapy.
This sounds like nonsense well if you think of the people from Connecticut new town.
They what they've had kids have been through trauma.
They're gonna want to get help for those kids' cognitive behavioral therapy could be a range of things that's essentially what we're talking about.
It's remarkable what can be done this is it something why is an ordinary -- ten million dollars -- this'll work 'cause we're not the one thing that's gonna work because there have been a lot of studies on this specific intervention that says it works well with this specific sixteen to eighteen year old population.
Who are now being treated as adults.
In an adult jail.
And what are you excited -- you've seen some good news six volunteers in Madison and Burlington Vermont.
-- I don't -- about the idea that.
Good ideas can spread with how a lot of this complex -- -- we've been talking about -- I hope comes to good -- I really do but.
Traditionally in America.
Good idea spread because people hear about the -- wanna start their own version of it their own town.
And so volunteers in medicine as a group this is free clinics can help people without insurance just as well as the Obama care law.
And now they're 92 free clinics across United States because -- helped get them started.
Good now after two years and -- after fifteen years.
Right so it isn't isn't immediate.
And singling out.
A hundred years ago we had a lot of immigrants and settlement houses start at all -- United States and they copied each other.
There wasn't settlement how central at the department of HHS.
But one group and once have you heard about from group and -- sitting -- raise their own money.
This kind of process can still go on and we should encourage.
Melissa it you -- out that.
Now with the more sophisticated web sites you can see where your money goes well you can see it you have at let's say better indicators because we don't just want to measure.
How the money is that we want to measure what the result it's right.
We don't want just inputs we want to understand -- -- measuring how the money is spent that's -- these rating agencies Charity Navigator the Better Business Bureau right.
Guides are right they just say OK -- 85% of the money goes to program right but the program whatever he's -- -- Right the program could -- -- said.
The bigger the organization who but the more economies of scale favorites so the higher the percentage going to program -- And -- -- smarter of the person who's filling -- the for -- the better they can allocate their expense they learn.
Not a game these systems in addition to things like Charity Navigator.
Here that there is a putt you just made the point they just over the budget.
There is now a group that looks at the impact social impact exchange and it's it's called the social impact 100.
And it looks to try to look at education health youth.
The whole bunch of different things poverty and tries to find the best organizations and -- on the web.
People are mentioning this because your group is on their list more proud to have been selected but it was not easy to go through what they -- and you -- to be nominated you couldn't apply.
They then had independent groups of experts evaluated.
And look at the results the results are as people think about where they're gonna have put their money in this charity season that you mentioned in the beginning in this program.
Just the fact that an organization would say we have a -- this is it we're trying to reach it.
Even that that's a good -- even that modest pretense but actually sets them apart from a lot of groups that only have a good cause.
And one more thing to think about on that -- who gives more security conservatives.
Much more more money more time were -- For what reasons we can discuss that and in the Q&A later but thank you Howard Melissa and David.
When we return might -- even -- better than charity.
Yeah -- pursuing profits.
We'll debate that next.
Now has more than 400.
I say they're cheap.
Because until recently they didn't give a lot to charity.
Was Ted Turner who may have changed that in 1997 he promised to donate a billion dollars to the UN.
The United Nations they squander.
Money it made me wonder.
And it's business tycoons maybe do more for the world reinvesting in their businesses because they're good business.
And that creates jobs and wealth -- one wise.
Giving your money way better than creating all these giant says it won't be -- -- so I didn't.
Think -- any job then why not do bottle in my wrong in thinking that I'm happy if Bill Gates gives nothing to -- when he had him -- here not only about hitters -- now that's a whopping by the white nose man -- and his band.
I know your dirty -- concerned there's nothing more to say goodbye.
I'm walking -- and a.
-- well it is absolutely true the businessmen like Ted Turner do the right thing.
By not giving money to charity says your -- Brock of the -- Rand institute and this just contradicts people's thinking solved.
Well look somebody like Bill Gates -- any billionaire for that how did they become a billionaire.
He became a billionaire but creating a product of -- service that benefits everybody and we know it benefits us because we pay for it.
And we paid quick lesson on what it's worth to us that's why we trade -- getting more of a value.
Then what would pick what what -- giving up so -- legs are better off Bill Gates has improved.
Hundreds of millions of lives around a look that's how we became a billionaire -- touched every human being on this planet.
By giving us products that work better -- things we wanted but also by employing people.
And that's charity that keeps on -- as well it's working and keep supporting their family -- that's not charity and and other trade right you you pay your employees should get something in return -- -- -- has been a lot of and you're better off.
And it's not just his employees what about all the companies that provide its software -- tired we are based on the Microsoft platform.
What about all the companies -- create computers too and the software that Microsoft created.
What about all the people they just use that software -- as a -- -- software.
Have become more efficient to become more productive and being able to create better products and better services for all of us -- don't you start thinking about the multiplier effect here.
Fifty billion dollars for Bill Gates I mean that's not think.
He he he you -- let's say that's nothing as compared to their value he is added to the world.
That is much greater than the value ever -- in any kind of charitable -- well let's argue that him and he's spending billions and he's applying his critical thinking skills.
He tried some ideas and education like small high schools and dumped it where it didn't work finally actually taking measurements and so.
Could even re invested more money in Microsoft and made and help more people probably.
Why don't know well first it's his money so he can do whatever he wants with it and and he has a right to do whatever -- he wants with it.
The issue is this.
He gets mall credit not.
For all the jobs created called the wealthy create if -- -- every second to -- Gets no credit for making it quite a country like we said Justice Department to go after him he's considered -- greedy businessmen.
It's all negative in spite of all the hundreds of millions of people he's helped because she benefited at the same time.
He shifted to charity suddenly he's a good guy.
Mean he's gonna do good with -- charity and he's a Smart guy as you said he's gonna play it well.
But he's gonna do a lot less good and might complain it's not that he's doing a charity is that we as a society.
Not to creation not the building not the accumulation of wealth.
Which is which is what America's really about what we value -- a charity that's gonna have good impact but he's got what's important is that what uniquely American -- that's what.
Freedom actually -- to know that's a -- issue charities fine but not.
Sosa -- -- the social virtue is a creation of building.
You recently went to an awards ceremony were they giving people lifetime achievement of this war businessmen -- right and they -- these long bios.
And if it goes by as they dedicate one minute.
To -- business achievements nine minutes to the philanthropy the community service.
What a perversion.
At a mall put -- They did benefit that these businesses have provided.
If you will -- communities but also their own lives and families have reason they should feel proud.
New reason they should feel good about the allies the self esteem happiness they generate from light -- somebody woke.
He -- to -- -- baseline should be one minute I'm actually ignore it put the wanted to give us nine minutes for the -- business achievement for the effort for the woke.
Put it for the struggle -- business is not easy it's a struggle that they put into it that's what they should be getting towards -- -- what they should be getting accolades for.
When I interviewed Ted Turner I asked him but other millionaires who who he thought were cheap.
Charity and he said there were people he thought should give more here's his answer.
Warren Buffett is a wonderful guy and he's gonna -- -- money away when he dives but he could live another twenty or thirty years he should give some away now.
So all you would argue that hey he's a good investor he's creating wealth by enlarging Berkshire Hathaway.
Absolutely he's one of the most phenomenal and investors say despite affected -- disagree with everything he stands -- politically.
He's a phenomenal investor.
And he should be investing he's creating real wealthy stating what -- -- shareholders.
He should get all the congratulations for a job well done -- gives a dying of it to charity.
On -- -- that's happening instead he and Bill Gates launched this giving us.
We're in this case at least she's saying.
You know give it when you die I'll keep working when I'm alive and and 92 billionaires have pledged to give away at least 50% of their wealth.
See I'm concerned about that what I'm concerned about is a motivation it it strikes me again this it goes back to this award ceremony.
It's the -- businessmen feel that I think is an enormous injustice.
It's wrong for businessmen to feel guilty about this success about the wealth creation and feel like the media.
Give back because if they took something away from anybody -- hate that term.
So let's so it's it's still it's a -- Bill Gates and and while Buffett deal to these billionaires into giving them money that I find objectionable about the fact that -- giving it.
Let's talk about some of these guilty business in the league but calling calling -- robber -- yes Rockefeller had an oil monopoly.
He got so rich what an evil guy -- richest man probably in American history do richer than Bill Gates it's just I just smear if this is a guy who gave a slight.
It that they can -- you could -- life of an American before Rockefeller establish a so called monopoly.
-- it consisted of daylights anyone asleep because it was not -- -- whale oil which was well used for lighting was so expensive most Americans can afford it might.
Establishing economies scale loading the place exact opposite of what people believe monopolies would you glowing -- as the right well -- kerosene at the time many that liked.
And people actually they did he extend -- think of the benefit to humanity the benefit people.
Got individual Americans got from walker -- -- monopoly and yet he's portrayed.
As this evil wants state you know we wouldn't have him that he may have even save the way all spoke 'cause you really need the -- oil and you know whaling industry was destroyed by -- -- had a good she made internal combustion engine.
Possible because -- the tying.
That came about in the automobile came up and oil was so cheap because of walker -- and people like him.
That it was now economical to have automobiles.
Play your kids won't.
Here in environmental science class that are right they don't say -- did say they are well aware of question about -- I think you're here on Brock coming up are no way to fund.
All kinds of things.
We need to be part of this we cannot miss that.
I give to charities.
I wonder can.
This money really helpful if people are buying it to Skoda.
Bureaucracy salaries -- Well a new way of fundraising aims to address that worry a company called -- connects Americans who want to help someone in poor countries.
Who want a -- This farmer in the Philippines asked for 200 dollars to buy fertilizer -- her -- This woman in Togo Africa asked for a -- expand her business selling bags of salt.
Sounds very nice but the second who keeps track of the money -- -- I know it really goes to those people and what are the odds that I'll get paid back its call alone.
We'll keep this founder -- all shot joins us now from San Francisco so -- -- I don't I don't get scammed -- gives through your chair.
While we -- Cuba spend.
Our time making sure that the loans on the website that are posted are legitimate.
And we do this.
Through three -- the first is.
We -- local field partners around the world to make sure that there legitimate organizations that are ones who are taking photos policy of the business plans.
Of you know the women and men that you talked about.
A farmer in the Philippines.
A woman who wants to buy.
-- for dairy business in Kenya.
The way they get up until website there's a local field partner and we vet that local field partner then we follow up by auditing that -- partner.
-- make sure that the data on the web site is actually true and when it's not true.
We make veterans turn on the website and we shut down natural partner in the third thing and this is what's exciting about a loan verses a donation.
Which is the proof is in the -- as you start getting -- paid on Cuba.
You know that that business has actually.
Earned enough money to pay you back and it and when you can get -- you can withdraw that money back your bank account or re lend it to another entrepreneur.
And looking at these businesses in the distance involved I would think most of the people don't get paid back.
Well actually in the last seven years the repayment rate is 90%.
On the web site.
Of total loans get paid back I mean that's.
It's hard to believe -- Oftentimes the -- people on the planet to 2.5 billion people who are underserved by banks and who live on less than two dollars a day.
They don't have collateral.
And they don't have credit scores like a lot of us here in the United States house.
However what they do have is they know their friends neighbors and their village and they self -- into groups -- say eight.
And then all eight of the women and typically loans go to women on the keep -- website over 80% of loans go to women.
Those women basically we'll pick people that they trust in their neighbor.
Neighborhood and they basically if one of the women let's -- her cow dies and she can't repay the loan.
The other seven women will chip in and cover her -- and the reason why is all eight.
Of those women and their future loans depend on everyone came back on time.
It's -- that's placing high repayment rates in micro finance.
And it's also a testament to the working poor which is if given the opportunity to get access to capital.
It's their lifeline out of poverty often times -- they take it very seriously they handled the money with care and they know that they can get access to future loans if they pay about the current one and.
I congratulate you and that you started Tivo not that long ago in 2005.
And yet already the told -- Hundreds of millions of dollars.
Lenders -- more all the time thank you Primeau shock thanks.
Now another site called kick starter uses similar concept to allow people to fund well anything.
People post projects and -- this idea film and daughter's fund the ones they like and yet here.
I'm pretty important feature that was done this -- -- music video.
Instead -- they actually get money from me there at pictures well yes.
Feel -- little -- -- got 200000.
Dollars after posting and kick starter that he wanted to make -- documentary.
In defense of fracking for natural gas 3000 people -- -- -- yes 2300 people.
Almost a quarter million dollars in two months and he wanted to make this movie because.
Well there's an untold story of attracting the -- not been told fracking has been smeared -- is -- -- think.
In fact it's wonderful it's lower prices for our for everyone in reduced pollution does natural gas.
Emits less than other things yes.
-- and the people out there know that but it's never told in the Hollywood documentaries.
And the and the mainstream movies -- -- by fracking so go to Hollywood and ask for money.
Pat pat pat pat I -- -- yes there's your answer that yes no listen new wider idea kick starter desperation.
Go to Hollywood on us for a film to ship to say that that the enemy of the rural poor in America is not big business is actually big environment.
That's not -- I was going to say.
That well they listened to they'll just laugh at duke -- eat this instead they make Matt Damon movie called promised land which says tracking is evil yes and as worse than evil -- so yes that that's what's there not Damon is going to tell you that -- -- -- found.
And the people of America I -- -- -- hard ground know that it's it's good for their communities and I'm brings a lot lots of good things so.
What I talked to their story how to be told that asked the people of America.
Just to follow me I'm I'm -- And kicks are either you offer different.
Rewards for if I give you could dollar I get my name in the credits.
Twenty dollars I get a dvd 125 dollars I also get a film poster.
And this motivated people to give it 200000 now yet would anyone to give -- -- dollar automatically became an executive producer and I felt and the I thought was very important because.
This is the film by the people for the people and that's -- kick starters aligned people to -- it's democratizing the documentary movements.
That no longer will Hollywood -- -- billionaires.
And millionaires to be able decide what to document the united.
People like there with a one dollars and ten dollars under fifteen dollars when he gets those donate to react if you want to that the I know -- to kick started as close but.
People out there with a small donations are going to up and Hollywood.
-- -- -- plan the means of making document -- and it's fantastic.
Well a good luck with your movie I hear Mark Cuban has bought it -- Yes put it somewhere he's gonna put -- -- access TV and John the 22 9 PM eastern.
It's going to go up against Thomas flowers coming out -- run the same time.
There's going to be another voice out there which is fantastic gust -- kick starter has allowed us to do have another voice from the billionaire Hollywood.
Democracy in fundraising thanks -- and coming up.
Might charities and a -- stories they've got the biggest film audience in history.
Every expectation that everybody -- yeah.
Okay -- charities do good things and bring people together it can't begin to cover the thousands that do but here's one.
It's called honor flight here's part of -- film about.
When I was liberated it.
-- -- -- lead above seventy.
Usually three of us -- your life.
Your heart just goes off.
The took sixty years for us to build a memorial to these guys they've never got the welcome home that they desire.
-- cancer he kept saying I'm going strong enough to make it -- -- World War II memorial.
We fought in World War II veterans -- memorial and low cost.
-- -- program produced that movie and Renee riddle helps run honor flights so what summer flight.
Well honor flight is a national -- work.
Hubs across this country made up entirely of volunteers.
And -- volunteers just want to give our World War II veterans.
One of the best days of their lives and they do they write us and tell us next to the birth of my children in my wedding day I just have the best stay on an honor flight.
And -- and can you fly them to Washington DC.
Because the World War II memorial was not even built until 2004.
It was the last of the war memorials to get -- -- so that was 65 years after the end of World War II by that time the World War II veterans were all in their eighties and in some cases their ninety's.
And didn't have the means financially or physically.
To make it out that are very few of them than ever seamless.
And they amazingly my neighbor about trends haven't even flown since world war -- so honor flight raises money locally.
And we completely fund these flights many of them are chartered flights and nationally over 100000 veterans have now had a chance to see.
-- memorial and it's really more about that in just a trip to Washington DC it's about saying -- about trend.
Thank you even after seventy years we know what you dead in your sacrifices.
Mattered and it -- someone that gift in the final chapter of their lives.
And clay you hear about this and you make a little movie about -- you start to make a movie you posted at reason dot com.
That's right my business partner the director of the -- Dan Hayes it posted the video it was veterans day 2009.
It got 35000.
Views which is pretty good on line but more emails to him and us than ever before with women and men saying I'm crying this remind me and my father my grandfather.
And I just reflecting on what it means to be an American.
C wanted to make more of a movie based on that -- We kind of had -- really really got -- and the next thing we know we quit our jobs we start a company to make the film.
-- go on the flights and once you go on the flights you understand.
We released a trailer and we ask people to give us 50000 views in honor of World War II vets by Memorial Day.
And we got four and a half million views and that trailer through FaceBook it was amazing.
And then the -- go to Washington they see the monuments and then spent a full day in DC and in their flown back home and in the case of your group to Milwaukee where you prepare a home coming for them.
So by the time.
With land back in Milwaukee a lot of these guys are very tired there in their eighties and they're ninety's.
They know there's going to be -- hometown.
They have no idea what it's going to be.
See you walk along with that.
In the distance you can hear this sort of.
This brings tears to.
Most of us and your journey is different from many in that these charities become institutions they go on and on here as well and it doesn't -- -- finish line which is kind of rare and I think that's why so many people have rallied around doesn't embrace that's our goal is to get every World War II that trend to -- memorial.
-- before it's too late and when you have that concrete goal.
It's very easy to rally people to your cause we actually turn away and volunteers not to be -- gracious in Wisconsin believe a wait list.
Of volunteers and I don't think there's many nonprofits that can say that.
Will come to the airport at 2 in the morning in order to get ready for the honor flights our veterans arrive at 4:30 AM.
It's a long day but we can't we can't keep them away in the volunteers -- 500 dollars that every veteran has -- -- who pays 500 dollars for that privilege they pay their own way.
And this will end one World War II vet dies every ninety seconds now.
So you make the movie and then you play at an unusual place they said why don't we do that from here at Miller Park the -- -- -- -- -- So we set -- -- shirt and together we fill that stadium with -- over 28400.
People on and set a world record Guinness book of certifies it is the biggest.
Film audience yeah they're -- and it collects okay.
Well thank you clay and -- coming -- the best places I found to spend my charity dollars.
And next your questions for our guests.
Back with your questions -- my gas Melissa Berman and tries to help people be Smart about where they give.
Here on broken the -- Rand institute who like -- -- says go ahead make money don't let them guilty you Linda getting -- -- -- And -- -- from the charity honor flight so whose first guest list.
We did align with I'm grand -- this philosophy.
To donate to a charity that also aligns with your own rational self interest.
Absolutely I -- certainly wasn't against charity she actually gave charity which he gave.
To causes she believe did that -- as you said with her own selfish but -- doesn't everybody reject.
No because it's not really -- -- long -- self interest it doesn't promote your life.
Shape reduce ongoing gilts who would you shouldn't get rid of that guilt it's -- you don't deserve -- so when we guilt -- into giving.
It's not in their self interest.
-- and that this pushes for an end.
You're saying that your honor flight program it's coming to an end.
We trying to replicate this program with the -- generation and future veterans of this country.
Absolutely in fact there are some honor flight hubs that have already moved on to Korean -- trends.
And obviously we have a lot of veterans that come to our airport -- -- they see that kind of reaction at these veterans are getting.
And we hear quite off and I hope you do these for that the younger guys some day -- it.
You see a lot of advertisements on TV from celebrities tend to Atlanta -- -- remain.
What are your thoughts on that as an effective she gets Red Cross for -- for example or it's their battle and -- -- Melissa.
You know -- Red Cross has a unique role in disaster recovery in America their chartered by congress they have to do it.
-- they're the only ones who really have to show up in the have to show up in Marshall volunteers.
So I'm in most situations they are often the first responders.
But for many of us there's -- an opportunity and they -- circumstances to kind of take a step back and say okay.
Lots of people are gonna help the Red Cross with their funding needs but what can I do.
Maybe not in the first day but in the second week when you start to see the pattern.
That you know what people really need -- stuff there are things like help fix up their houses.
And the places that got flooded or we need more meals for the elderly who got stuck in buildings and -- couldn't get downstairs.
It can be good to be a little thoughtful and to wait a bit.
And I should also went popularize I was trying to get -- do stories docile hour about the scam charities we should worry about this Christmas.
And we look for -- -- and there are some.
But there are many summer less efficient than others but most do good things.
There's been a lot of discussion lately about.
Changing the tax -- to limit deductions and deduction for charitable contributions as one that everyone says we must keep.
Wondering if you all agree on that especially them.
Tell me from me.
-- -- -- No I I don't believe we should keep it as well as well getting rid of all the deductions I believe.
-- -- extent that it did we have a tax code it should be as simple as possible with no attempt by the government.
You know what they think is a good use of the money on not did you switch should get deducted social policy should not be.
Done through the tax code we you know we should eliminate -- options that -- OK.
I think that that's.
That that point -- has a great deal of merit to it.
But I would respectfully.
Say that the charitable deduction is an important part of the African American life we don't -- giving.
Because we have a charitable deduction we have a charitable deduction because we value it.
And I think that it's hit an important.
Mechanism that helps link communities it creates a lot of social capital.
As -- -- -- at the -- doesn't do I think that it it's a signal to us and in our country.
Of a set of values that we have -- -- I'm fine with runners on FaceBook and question Kimberly Heiser says you think it's better to give it your time -- your money.
For you again sure I think that it's a great to do both.
I think that one of the best got -- one time or money yeah.
I know I don't think -- now.
I think that the best way to really understand how charitable organization is working.
And the best way for you to be useful in helping them achieve their mission is to put your time where your money -- -- and vice Versa.
And I should just add the people who give time and give face to face self report that it brings them more -- -- -- Thank you Iran and Melissa right and it coming -- Why good giving.
Help some more big government helps.
There are four ways to spend money said Milton Friedman.
Spending your own money on yourself that's when your most careful.
-- spend your own money and someone else.
We do a lot of that at Christmas time spending on someone else is less efficient because sometimes we buy the wrong stuff but.
It gives you that warm glow that you get when you do something for others and this is what charities about.
And then there are -- three and four spend someone else's money on someone else or other people's money on yourself.
And that's what politicians.
-- and of course that's the least efficient way to spend the one most likely to lead to waste and fraud.
So since politicians spend other people's money in the most inefficient way to.
Charity is better.
The good reason to -- If you just hold on your money and government later gets it don't squander it.
Of course some charities squander money -- security rating agencies give us guidance but none is super accurate.
It's why I give to charities that I can seek personal insult I can keep and -- and how they spend the money.
I see how Catholic Charities educate kids and do a better job than government for much less money.
I can see how my city government left Central Park a dangerous mess.
Until private charity made it safe.
I can see these ex cons working for the don't -- The men in blue pick up trash that government doesn't pick up around my neighborhood and after -- -- sandy doe fund workers -- a ton of cleanup.
From what I saw they helped more than government.
Not only securities more efficient than government it feels good -- -- -- Stephen posts fine book -- hidden gifts of helping reveals 76%.
Of Americans say the thing that makes the most happy.
Is helping others.
And giving -- garden but helping face to face is better.
Say it makes them feel happier.
68% even -- report that it makes them feel physically healthier they sleep better.
There's other research that backs this up it's true so I help you gear that'll make you happy.
It is a way to make the world a better place.
That's our show I'm John Stossel thanks for watch.