Thursday, May 01, 2008

There are two sides of business

There are two sides of business: the buyer and the seller.

It’s the responsibility, or in the best interest, of the buyer to know what specifically he is buying.

Now, the bigger a company is, the more you divide the money among middlemen before you end up at the actual product. In many cases it is cheaper to go through the big business. For example, in a successful business such as Wal-Mart, it is cheaper to go through them than actually buying a t-shirt from the person who made it.

At times though, going through the middleman (or the company) isn’t worth the money. This is inefficiency.

Traditionally, governments are inefficient. Meaning that if your tax money was better, more efficiently managed, citizens would get more value for their tax dollars.

I’m suggesting creating a website that shows people exactly where their money goes. I want to create a website to post public projects that people can donate money to (investment opportunities too). For example, building a community sized solar still in Cape Verde, or a technical school in Chad, or even improving the street in downtown Atlanta. The site will require the people posting projects to provide all information including a detailed budget. Afterwards, they can prove all of their expenses on the website to the funders to see.

Every project would have a webpage. And the financiers, as project sponsers could have advertising space on the webpage for free.

If a tax-exempt donation means if a taxpayer pays you, the non-profit, instead of the government, they have to pay less taxes, what if you created a system that identified the specific needs of a community and presented it in such a way that you identified exactly where the money would go.

Meaning, you see what you pay for before you even donate. The way PCPP (peace corps Partnerships) handles posting projects, is that you must plan every penny you plan to spend in your proposal, including labor, then show with receipts once the project is finished. If an organization gains a reputation, it’s more likely to be offered the cash for the bigger projects. Or profits. Then you decide what you earn, your value.

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