After “Hongxing Erke” donated money, a business model that guarantees the landing is needed

Charity is not free, and there are social costs, so we must use the money in the most efficient way.

After “Hongxing Erke” donated money, a business model that guarantees the landing is needed

The heavy rain disaster in Henan continued to arouse the attention of the whole people. On July 21st, Internet companies including Alibaba , Tencent , Baidu , ByteDance , Meituan, Xiaomi, etc. have already begun operations, and have announced that they will contribute money to help Henan urgently. 

It is worth noting that the domestic sports brand Hongxing Erke announced an emergency donation of 50 million yuan through Zhengzhou Charity Federation and One Foundation to help the disaster-stricken area in Henan. Netizens sighed: “It feels like you are going to go bankrupt and you donated so much” sad comment, and sent it to the hot search.

Whether it is a famous company, a celebrity or an ordinary person, everyone will have kindness, but it is not easy to land kindness, and it must be organized after landing. In fact, philanthropy is not just about helping others through donations. Charity should not only focus on strategy, employee management, and benefits, but also on business models. In this way, charity can be done better.

Everyone will have kindness, but it is not easy to land kindness, and it must be organized after landing. There are two ways to organize charitable organizations: one is non-profit organizations, which do not have owners, so the cost is very high; the other is social enterprises, which is the approach advocated by Yunus, which combines capital market and public welfare organizations. form bound together . There are two types of social enterprises:

The first type: the enterprise itself pursues the maximization of profits and distributes dividends to shareholders at regular intervals according to the number of shares. The poor can buy shares at a discount and enjoy the long-term dividends brought about by the development of the enterprise. You can provide a small loan when you have no money at the beginning, and you can repay the loan with dividends. Like Grameen Bank, it started from a very small bank to lend to the poor. Over the past two to three decades, tens of millions of people have made deposits and loans there . In the end, 94% of the equity of this state-owned bank was given to the poor, and the other 6% were given to the poor. Government owned.

The second type: The investor builds a profitable company without dividends, and returns to the investor after operating the profit. After that, the control of the company still belongs to the investor, and the money earned belongs to the enterprise and the enterprise manages it.

Make charity popular

There are many ways to allow everyone to participate in charity. For example, “Global Donation”, which is equivalent to a donation supermarket, will regularly propose some projects that need help. Donors can find projects they like on the Internet to donate, such as the earthquake in Japan, you can donate a sum of money for them to implement , And look at the whole process, if you are not satisfied, you can ask for another project, so that the person who pays can do it according to his own will. 

There are also some very interesting practices, such as the “FreeRice” website ( This is a charitable organization that helps to solve the global hunger problem by donating rice to refugees. After logging in to this website, you will be asked to do some questions. There is a plate next to it. If the answer is correct, 10 grains of rice will come out, which represents the donation to African refugees. 

For children, the free rice website will list different types of questions in English, geography, mathematics, chemistry, etc. If you answer it correctly, you will get rice. The company is responsible for the maintenance of the website, and a social center of Harvard University pays to find someone to be responsible for the question, and constantly improve and update the content. 

The money to buy rice is sponsored by large multinational companies, such as Unilever and Yum , which attach great importance to promoting their social responsibilities, and these companies pay for rice. However, the operating cost of the entire plan is very high and basically inoperable. It just so happens that the marginal cost of UNHCR to do this is very low, and in the end they will be responsible for buying and delivering rice. The whole business model is “netizens answer questions to let hungry people get food.” 

This website started operation in 2007 and reached 197.2 billion grains of rice in February 2016. If one person does 100 questions on the website, it is equivalent to 1.9 billion people who have answered the questions on the website, mostly children. This can be seen in this project. Social effects. 

After “Hongxing Erke” donated money, a business model that guarantees the landing is needed

Charity is not free, and there are social costs, so we must use the money in the most efficient way. There is a charity organization called Shanshui, which easily solved the drinking water problem of countless people. In Africa, 20 US dollars can solve a person’s drinking water problem for 20 years, and it takes 6000 US dollars to drill a well. This website called Shanshui allows people all over the world to help African villagers fetch water. A donation can exceed 20 US dollars. After the amount of 6,000 dollars is enough, a team will be organized to drill the well, and the location of the well can be marked on Google Maps, showing the progress of the well drilling, and who in the village will drink the water from the well… By taking photos and recording videos All this information can be seen by donors. 

As of the end of last year, Shanshui has carried out more than 2,600 water-saving projects in 67 countries, digging a total of 28,900 wells, and helping 25 million Africans solve the drinking water problem. This is also the design of the business model. 

Make charity sustainable

Statistical studies have found that if an organization encourages employees to do charity and charity at the company level, the culture and competitiveness of the entire company will be stronger. Therefore, many large companies are willing to help their employees to donate more conveniently. 

Therefore, the “Global Donation” website turns such companies into customers, provides donation pages for them, helps to operate and maintains, and receives a fee each year, and then finds suitable charity projects for everyone, collects agency fees, and helps the company Promote their contributions to the donated projects, or provide opportunities for donors to communicate with world-renowned entrepreneurs. After earning income through such methods, the website can continue to operate. 

Heifer International has devised a very interesting and simple donation rule. By donating cows to the poor and teaching them skills, they are required to donate the first cow and breeding technology as a gift. To the next person. As of September 2015 (the latest data), the Heifer International Project has helped more than 22.6 million poor families in 125 countries around the world to get rid of difficulties, and realized the self-reliance and independent development of farmers. 

It can be seen that charity does not blindly help others, as this will make the recipients feel dependent. Charity is about designing a business model to allow them to give play to their own value while getting help, pass on the spirit of charity, and achieve a healthy personality development by increasing their sense of identity. 

India has a very interesting charity practice called Araven Eye Hospital, which adopts an assembly line model to treat eye diseases by opening chain stores, which can improve the efficiency of the hospital’s output. Generally, a doctor will operate on two operating tables in turn at the same time, just do the operation, and other tasks will be done by professional nursing staff. Eye surgery in a traditional hospital in the West takes 30 minutes, while it takes only 10 minutes at Araven Hospital, which means that the cost is reduced. The cost of an eye surgery has been reduced from an average of US$300 in India to US$50, which is only 20% of the cost of its peers. 

After “Hongxing Erke” donated money, a business model that guarantees the landing is needed

The chain of hospitals in Aravan is divided into three categories: 

The first category: paid hospitals. An average of 4,623 outpatients are received every day. All services are charged and divided into different grades. The most expensive day is 155 yuan, and the cheapest is 8 yuan. 

The second category: free hospitals. The consultation and surgery are all free, but the intraocular lens is charged. 

The third category: medical camps. Mobile free hospitals, all diagnosis and treatment are free, and this project is cooperating with the local community and government. 

When the Aravan Hospital was established, there were only 11 beds (established in 1976). As of March 2013, it has grown to 5 tertiary eye hospitals, 2 secondary eye hospitals, 6 outpatient hospitals, and 41 primary eye centers. With 2841 medical camps, from 2012 to 2013 alone, the number of outpatient visits reached 3.1 million. With 1% of India’s ophthalmology resources, 5% of the problems were solved, and more than 60% of the patients were free. 

Philanthropy must not only focus on strategy, employee management, and benefits, but also on business models. Only with business models can philanthropy be more effective. 

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