The real social innovation he talks about involves charity. According to the talk, one’s desire to change the universe can be undermined by deeds of charity and the non-profit sector. Pallotta says that a…
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He continues to say that social business needs a market, and there are issues that one just cannot develop the kind of money measure that one needs for the market. Pallotta then continues to discuss on the development of the mentally disabled. He says what these people need and want is laughter, compassion and love, bringing out the aspect of the nonprofit sector.
Pallotta states the more value one produces, the more income they can amass, but people do not like non-profit sectors to use the money to produce more social services. This is evident when he uttered, “We have a visional reaction to the idea that anyone would make a lot of money helping other people” (3:17).
Pallotta points out that full-time profit sectors spend money on advertising, however, most citizens are not pleased when they realize the money they donated is used on advertising charity work (5:42).
Non-profit sectors fear if they fail, their reputation will be spoiled. This is evident from what Pallotta says “Non-profit sectors are reluctant to attempt any brave and huge scale fund raising because of fear." (7:54).
Pallotta points out that one cannot make profit in a non-profit sector. Therefore, the profit sector has a lock on the capital markets while the non-profit sector stars in for growth, risks and capital (9:02).
The non-profit sector has an extreme disadvantage compared to the for-profit sector. This is evident from the main points that Pallotta accentuates about the non-profit world that one cannot use money to take the mentioned risks to persuade their clients, as compared to the for-profit sector which can take the mentioned risks to persuade their clients. Moreover, the non-profit sectors cannot have a stock market as compared to the for-profit sector. Therefore, the non-profit sector remains to be extremely disadvantaged compared to the for-profit sector at all levels (10:39).
I think the non-profit sectors are rewarded for the little they spend, and
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