In this season, think of others
December 18, 2010
In any season, I think it’s appropriate to think of others, actually, but this is particularly timely for a few reasons. My good friend and fellow blogger J. Money of BudgetsAreSexy.com has been toiling long and hard on this fantastic project called LoveDrop (defunct, now).
It’s a micro-giving network intended to target people in need, one person or family per month, and surprise them with a bundle of financial gifts and other assistance. This started as very much a grassroots campaign, so although it’s not a not-for-profit organization and your contributions aren’t tax deductible, it’s for a very good cause. The project officially launches on January first, but it’s certainly open for people to purchase a subscription and get involved.
The group does have to pay taxes so the ratio of your contributions breaks down as follows: 50% to the recipients, 20% to taxes and 30% to organizational overhead.
Score one for transparency, and ten points to these guys for pursuing their passion of changing the world, one ‘drop at a time!
And to add to the mix, just as I completed the last touches on this post, I heard that LoveDrop co-founder and friend J. had been fired. Frankly, given all the projects in his head that need birthing with so few hours in the day, it couldn’t have happened to a better man. So consider supporting the cause and becoming a member because wouldn’t it be fantastic to help one of our own realize a dream of making the world a better place?
That has to be the best “I got fired” story ever.
I like the idea of LoveDrop, but I’m deterred by the low pass-through rate of the funds, particularly the part that goes to taxes. If they decide to become a non-profit (and thus remove the tax payments), I’ll probably join, because I think they have a neat idea. But I’m just not willing to have my money put through the tax ringer yet another time before it reaches a deserving recipient.
30% for “overhead”?
It costs nothing to run, except time. Disappointed they are taking so much for themselves.
@The Lost Goat: It is a shame that the tax rate is so high, but the hurdles of becoming a legitimate non profit organization are pretty stiff so I can understand why they might not go there right now.
@Anon: If I’m not mistaken, it doesn’t just involve their time, it also has costs associated with the delivery of the ‘dropped packages, whatever that might be. But I might leave that to those who are better informed to respond to.
I admire J. for creating LoveDrop. I wanted to add that the Yakezie Network has banded together to give out scholarships regularly. The first applicant essays are posted now.