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THE COLLEGE CLUB OF CLEVELAND 2348 Overlook Road, Cleveland Heights, Ohio 44106 216-231-1683 FAX: 216-706-1232 thecollegeclub.org club manager thecollegeclub.org APPLICATION FOR MEMBERSHIP I hereby

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Translator: Joseph Gene Reviewer: Morton Bast I want to talk about social innovation and social entrepreneurship. I happen to have triplets. They're little. They're five years old. Sometimes I tell people I have triplets. They say, “Really? How many?” (Laughter) Here's a picture of the kids -- that's Sage, and Annalisa and Rider. Now, I also happen to be gay. Being gay and fathering triplets is by far the most socially innovative, socially entrepreneurial thing I have ever done. (Laughter) (Applause) The real social innovation I want to talk about involves charity. I want to talk about how the things we've been taught to think about giving and about charity and about the nonprofit sector, are actually undermining the causes we love, and our profound yearning to change the world. But before I do that, I want to ask if we even believe that the nonprofit sector has any serious role to play in changing the world. A lot of people say now that business will lift the developing economies, and social business will take care of the rest. And I do believe that business will move the great mass of humanity forward. But it always leaves behind that 10 percent or more that is most disadvantaged or unlucky. And social business needs markets, and there are some issues for which you just can't develop the kind of money measures that you need for a market. I sit on the board of a center for the developmentally disabled, and these people want laughter and compassion, and they want love. How do you monetize that? And that's where the nonprofit sector and philanthropy come in. Philanthropy is the market for love. It is the market for all those people for whom there is no other market coming. And so if we really want, like Buck minster Fuller said, a world that works for everyone, with no one and nothing left out, then the nonprofit sector has to be a serious part of the conversation. But it doesn't seem to be working. Why have our breast cancer charities not come close to finding a cure for breast cancer, or our homeless charities not come close to ending homelessness in any major city? Why has poverty remained stuck at 12 percent of the U.S. population for 40 years? And the answer is, these social problems are massive in scale, our organizations are tiny up against them, and we have a belief system that keeps them tiny. We have two rule books. We have one for the nonprofit sector, and one for the rest of the economic world. It's an apartheid, and it discriminates against the nonprofit sector in five different areas, the first being compensation. So in the for-profit sector, the more value you produce, the more money you can make. But we don't like nonprofits to use money to incentivize people to produce more in social service. We have a visceral reaction to the idea that anyone would make very much money helping other people. Interestingly, we don't have a visceral reaction to the notion that people would make a lot of money not helping other people. You know, you...

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