Pop Quiz: Giving to a Worthy Cause

I have in my bank account $20,000. I want to use it for the good of society. My city has many worthy charities to which I have contributed lots of money in past years. There are also hard-working but poor people in my church, and also neighbors in need. What is the most charitable thing I can do with this money? Pick one.

1. Donate $20,000 to a worthy charity. They have experience in determining those in real need.

2. Use it to help support the poor in my neighborhood and church. Person to person charity is the best and gives the most satisfaction

3. Give it to an international charity. Missions are important, and poverty abroad makes the poor at home look like royalty.

4. Do a combination of all three.

5. Forget the charities. Use it to start a business.

Correct answer? The first 4 are all honorable choices. But have you thought about #5 as being the best way to benefit society?

If I start a business and turn a profit, I have more money to donate to charities. As a businessman, I’ll buy goods and services from others, helping them stay in business and keeping people employed.

If I’m successful in business, I’ll need to hire people to work for me, taking them off the unemployment and welfare lines, a benefit to both the taxpayer and my new employees.

My employees, in turn, will donate more to charity and will also buy more stuff including houses and cars, which will help other people make more money and donate more to charity.

By starting a business, I’ll generate more good in dollar terms than the $20,000 I would have contributed and at the same time reduce the need for charity. Sounds like a good deal to me.

Small business is the primary creator of wealth in the USA. Successful private businesses make more money available for charities while at the same time reduce the need for it. Sounds like a heckuva deal to me.