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January 20, 2005

Comments

Alan

Your point is that in order for taking the 35% hit to be worthwhile, Omidyar has to (thinks he can) find social value equal to 35% in the companies he invests in, or else he wouldn't do it ... There is also the other side that tax incentives encourage distortions and inefficiency; by giving money to for profit businesses, he ensures that his money is spent more efficiently ... In non-profits those donating depend on the reputation/intent of those running the place to control both the social mission and the efficient implementation of that maission; in a for-profit, the profit motive ensures efficiency in daily operations and the donor just has to check in occasionally to make sure that the social goal doesn't get lost

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