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Questionerno um just asked me which IIT I went to
Otherso the are not just a National Treasure so the are not just a National Treasure so the are not just a National Treasure they are a Global treasure and all of they are a Global treasure and all of they are a Global treasure and all of you IID grads know that you are the very you IID grads know that you are the very you IID grads know that you are the very best of the best and it is truly a best of the best and it is truly a best of the best and it is truly a pleasure and an honor to be with you pleasure and an honor to be with you pleasure and an honor to be with you here today so many of you in the room here today so many of you in the room here today so many of you in the room here are worth our millionaires several here are worth our millionaires several here are worth our millionaires several times overs and many more of you will times overs and many more of you will times overs and many more of you will get there in the decades ahead and even get there in the decades ahead and even get there in the decades ahead and even with the lavish lifestyle you are going with the lavish lifestyle you are going with the lavish lifestyle you are going to end up with very substantial Estates to end up with very substantial Estates to end up with very substantial Estates and there are just two choices you have and there are just two choices you have and there are just two choices you have in terms of what happens to that estate in terms of what happens to that estate in terms of what happens to that estate you can either give it to your gen you can either give it to your gen you can either give it to your genan pool or you could choose to recycle it pool or you could choose to recycle it pool or you could choose to recycle it back to society my hero Warren Buffett back to society my hero Warren Buffett back to society my hero Warren Buffett has a wonderful quote I'd like to give has a wonderful quote I'd like to give has a wonderful quote I'd like to give my kids enough money for them to do my kids enough money for them to do my kids enough money for them to do anything they want anything they want anything they want but not enough money for them to do but not enough money for them to do but not enough money for them to do nothing large inheritances are not nothing large inheritances are not nothing large inheritances are not really a gift to your children they are
Warrenreally a gift to your children they are a burden and they're likely to cause distortions in their lives that in the aggregate are negative I became interested in philanthropy not because I'm particularly charitable or altruistic by Nature I decided to recycle all of my assets back to society simply because of enlightened self-interest it is the only sensible choice and I think if you spent a few minutes thinking about it you you will come to the same conclusion it is probably okay to give your kids a couple of million dollars each but I don't think you're doing them any favors by giving them 20 million most Charities are run by humans with great Hearts but they are all heart and no head they have never run a business before they have never met a payroll they've never had 99% of the network tied up in a business tethering on the edge of bankruptcy I
Othertethering on the edge of bankruptcy Itethering on the edge of bankruptcy I studied the annual reports of manystudied the annual reports of manystudied the annual reports of many Charities and Foundations and I cameCharities and Foundations and I cameCharities and Foundations and I came away deeply disappointed not one of themaway deeply disappointed not one of themaway deeply disappointed not one of them ever highlighted anything that they hadever highlighted anything that they hadever highlighted anything that they had failed at or more importantly thefailed at or more importantly thefailed at or more importantly the lessons they might have learned fromlessons they might have learned fromlessons they might have learned from those failures they were set up asthose failures they were set up asthose failures they were set up as marketing machines focused on maximizingmarketing machines focused on maximizingmarketing machines focused on maximizing inflows by putting forth stories andinflows by putting forth stories andinflows by putting forth stories and pictures that Ted the heart so I thoughtpictures that Ted the heart so I thoughtpictures that Ted the heart so I thought to myself mon you have all these strangeto myself mon you have all these strangeto myself mon you have all these strange ideas about how a nonprofit should beideas about how a nonprofit should beideas about how a nonprofit should be run about how there's no differencerun about how there's no differencerun about how there's no difference between running a for-profit businessbetween running a for-profit businessbetween running a for-profit business and a nonprofit about how nonprofitsand a nonprofit about how nonprofitsand a nonprofit about how nonprofits should not be run by humans withshould not be run by humans withshould not be run by humans with tremendous Hearts but businessmen withtremendous Hearts but businessmen withtremendous Hearts but businessmen with great hearts and about how nonprofitsgreat hearts and about how nonprofitsgreat hearts and about how nonprofits ought to narrow their focus to one orought to narrow their focus to one orought to narrow their focus to one or two well-defined causes but all of thesetwo well-defined causes but all of thesetwo well-defined causes but all of these thoughts really have no value withoutthoughts really have no value withoutthoughts really have no value without execution behind them so in 2007 when
Otherexecution behind them so in 2007 when our net worth crossed 50 million my wife Arena and I decided to set up the daksh foundation and we decided we'd give away 2% of our net worth every year to the foundation so that would give us at least a million dollars a year which would allow for Meaningful experimentation of putting my strange ideas to a real world test give a man a fish and you feed him for a day teach a man to fish and you feed them for a lifetime we had no interest in giving away fish we wanted to teach fishing so the question was what type of fisherman should we try to create and as I was trying to answer this question I heard about this amazing person Anand Kumar who ran this incredible program called super 30 in Bihar every year Anand takes in 30 impoverished kids from rural Bihar and coaches them for the IIT entrance
Otherand coaches them for the IIT entrance exam his mother cooks all of their mealsexam his mother cooks all of their mealsexam his mother cooks all of their meals boarding lodging coaching tutionsboarding lodging coaching tutionsboarding lodging coaching tutions everything is free super 30 provides alleverything is free super 30 provides alleverything is free super 30 provides all of it and Arnold has been doing his forof it and Arnold has been doing his forof it and Arnold has been doing his for more than 10 years and every yearmore than 10 years and every yearmore than 10 years and every year between 80 and 100% of the super 30 kidsbetween 80 and 100% of the super 30 kidsbetween 80 and 100% of the super 30 kids get accepted by the iits it is aget accepted by the iits it is aget accepted by the iits it is a tremendous accomplishment and it has atremendous accomplishment and it has atremendous accomplishment and it has a social Roi that's simply off the chartssocial Roi that's simply off the chartssocial Roi that's simply off the charts Anand is a mathematician educatorAnand is a mathematician educatorAnand is a mathematician educator philanthropist entrepreneur all rolledphilanthropist entrepreneur all rolledphilanthropist entrepreneur all rolled into one I immediately reached out tointo one I immediately reached out tointo one I immediately reached out to him and went to Bihar and met him and Ihim and went to Bihar and met him and Ihim and went to Bihar and met him and I suggested to him that daksh could fundsuggested to him that daksh could fundsuggested to him that daksh could fund him and perhaps he could take his superhim and perhaps he could take his superhim and perhaps he could take his super 30 program to maybe 300 kids a year from30 program to maybe 300 kids a year from30 program to maybe 300 kids a year from 30 kids a year he turned me down he said30 kids a year he turned me down he said30 kids a year he turned me down he said he did not want outside donor funds hehe did not want outside donor funds hehe did not want outside donor funds he did not want to scale his program hedid not want to scale his program hedid not want to scale his program he liked it exactly the way it was so Iliked it exactly the way it was so Iliked it exactly the way it was so I asked him if he would object to usasked him if he would object to usasked him if he would object to us cloning and scaling his program on our
Othercloning and scaling his program on our own and he strongly endorsed the idea and so from a standing start in 2007 daksha has sent 458 impoverished kids to the iits we took on a total of 1,033 Scholars uh we had a success rate of 44% versus a national IID acceptance rate of 2% and most of our Scholars come from rural India the parents are illiterate they are usually Farmers or laborers When I visit dakna scholar homes deep in rural India typically the best hotel within 100 mile radius is a two star or three star property my daughter and I have slept in rooms that are mosquito INF infested during the monsoons rooms with no hot water rooms with Dirty Toilets most of these hotels have no safes I'm always concerned that we lose our passports I have to be honest these things bother me but they bother me a whole lot less than 7 years ago it has
Otherwhole lot less than 7 years ago it has added an amazing richness to my life a richness I would find hard to describe but one I'm not willing to give up so I keep going back and the personal Journey I'm on is to get to the point where a one-star Hotel doesn't bother me where lost passports or dirty bathrooms become irrelevant where I just enjoy the visits this year 250 dakna Scholars just took the IIT entrance exam and we expect at least 70% of them to be accepted by the iits we'll know in a couple of weeks we have a stretch goal at Daka Is 2020 in 2020 is what we call it so we'd like to send 2020 impoverished Scholars to the iits in the year 2020 I don't know if you will get there in 2020 or ever but if we do one in seven Ians would be from daksh it's all about the journey the journey is the destination I am reminded of these words by the poet
Questionerreminded of these words by the poet Robert Frost two roads diverged in a wood and ie I took the One Less Traveled by and that has made all the difference thank you or they with discuss in with that let me ask a really a a question for you and I'd like you to deal with it at a personal level I think people are interested to know what makes you TI and who you are how did you decide on Dua and in general how did you decide to not just give money but also time because many people you know they figure hey I make money and in India especially many of us you make money and you give money to a temple or whatever but there's a big difference between philanthropy in India versus philanthropy of the West as many of us who are immigrants here would recognize and the decision to not just give your money but also your time is a whole different thing it's a different
Questionerwhole different thing it's a different thing and so I'd love to know from you how did you make that decision how you de indua the amount of time you're putting into it and what is it about you uh I
Otheractually never wanted to set up a nonprofit I think that was never anything I wanted to do I actually would have preferred to just write checks and I meet Anand Kumar every year and I keep blaming him for getting me in the kind of situation I'm in uh but yeah so my my sequence of thought was that like I just said I have to get to zero in assets by the time I'm 80 I'm I'm assuming I'm gone at 80 and I do care that the money is used effectively so I didn't want to just write checks which may or may not be used effectively so since I couldn't find a cause that I was passionate about and I could see some some things that I could do on my own we decided to proceed
Othercould do on my own we decided to proceed I have always assumed that it's much more difficult to give money away effectively than make the money I think making the money is a lot easier than giving it away in fact I'm trying to scale Daka now and it's hard our issue is not money our issue is uh getting the government and other entities to go with the base we'd like them to I made an assumption that I might spin my wheels for 10 years or 15 years when I try to give money away I did not want to start when I was in my 70s or 60s I wanted to start when I was young and I had the energy so we started when I was 42 and we lucked out we actually got traction within a few weeks so that's really was a driver is basically get to zero that's an important number for me to get to to personally be satisfied that I got the absolute highest social Roi I could get
Questionerabsolute highest social Roi I could get with the funds and then the rest of it is just a game but it's a fun game but if I could just follow up from that at the end of the day you made a decision that is unlike many other folks who get age 40 make a lot of money and they still want to make a lot more money and and they keep going and but they don't NE so you decide to do what you did what's was it in your childhood your parents
Questionerno uh it's because I overdosed John Buffet you did not come from my parents even though they're very charitable to people around them and so on but I didn't get any lessons about you know trying to do this from my parents but I did get them from Warren Buffett and I think most people don't realize they they're on a treadmill and they get to 70 or 80 and then they you know I think your choices are very
Otherknow I think your choices are very limited in terms of what you can do and limited in terms of what you can do and limited in terms of what you can do and the the numbers will get very large for the the numbers will get very large for the the numbers will get very large for many of you and if you don't give it many of you and if you don't give it many of you and if you don't give it thought when you're young and able to do thought when you're young and able to do thought when you're young and able to do things and I think I personally think things and I think I personally think things and I think I personally think that business world and people who come that business world and people who come that business world and people who come from the private sector have a huge from the private sector have a huge from the private sector have a huge amount to add to the world of amount to add to the world of amount to add to the world of philanthropy and so I wish many more of philanthropy and so I wish many more of philanthropy and so I wish many more of you will take the leap it's it's you will take the leap it's it's you will take the leap it's it's challenging it's tough but there are challenging it's tough but there are challenging it's tough but there are massive paybacks are much better than massive paybacks are much better than massive paybacks are much better than just making more money it reminds me of just making more money it reminds me of just making more money it reminds me of a quote by Buffett's partner Charlie a quote by Buffett's partner Charlie a quote by Buffett's partner Charlie Munger and Charlie Monger says that Munger and Charlie Monger says that Munger and Charlie Monger says that Costco has done more good in this world Costco has done more good in this world Costco has done more good in this world than the Rockefeller Foundation I think than the Rockefeller Foundation I think than the Rockefeller Foundation I think if you pursue entrepreneurship and you if you pursue entrepreneurship and you if you pursue entrepreneurship and you build the economy and build jobs build the economy and build jobs build the economy and build jobs absolutely that has multiple paybacks in absolutely that has multiple paybacks in absolutely that has multiple paybacks in terms of helping Society probably the terms of helping Society probably the terms of helping Society probably the best way you can help Society I also
best way you can help Society I alsobest way you can help Society I also feel that it's better to keep the twofeel that it's better to keep the twofeel that it's better to keep the two separate in the sense that Costco'sseparate in the sense that Costco'sseparate in the sense that Costco's mission is not philanthropy its missionmission is not philanthropy its missionmission is not philanthropy its mission is to serve its members and and suchis to serve its members and and suchis to serve its members and and such does a marvelous job so to some extent Idoes a marvelous job so to some extent Idoes a marvelous job so to some extent I feel that I actually see both my livesfeel that I actually see both my livesfeel that I actually see both my lives separate so there is the capitalist Mishseparate so there is the capitalist Mishseparate so there is the capitalist Mish who I spent most of my time onwho I spent most of my time onwho I spent most of my time on capitalist Endeavors which have reallycapitalist Endeavors which have reallycapitalist Endeavors which have really nothing to do with the the philanthropicnothing to do with the the philanthropicnothing to do with the the philanthropic Bish and and such and both are fine andBish and and such and both are fine andBish and and such and both are fine and in fact I would say the capitalistin fact I would say the capitalistin fact I would say the capitalist engine is very important because that'sengine is very important because that'sengine is very important because that's the one driving everything else I thinkthe one driving everything else I thinkthe one driving everything else I think the best thing you can do is pursuethe best thing you can do is pursuethe best thing you can do is pursue entrepreneurship I only think thatentrepreneurship I only think thatentrepreneurship I only think that philanthropy kind of becomes importantphilanthropy kind of becomes importantphilanthropy kind of becomes important and interesting because you're going toand interesting because you're going toand interesting because you're going to end up if we lived forever it wouldn'tend up if we lived forever it wouldn'tend up if we lived forever it wouldn't be an issue but we don't live foreverbe an issue but we don't live foreverbe an issue but we don't live forever but it has never escaped me and when Ibut it has never escaped me and when I
Questionerbut it has never escaped me and when I recently sold my last company key out systems I kept coming back to the central question can you in fact build a business which makes money but also does good and I'd like to probe that if I could for all of you gentlemen because all of you have made money and all of you can absolutely argue that you have done good by giving employment and that is by definition what a business does but beyond the giving employment question can you build a business where the focus is not just making money it is making money but also some element of social Redemption social good can you said they should be separate why do you say that
Otherlet me I would say recalibrate that a little bit yeah I I definitely think that the two should be separate but I think a business created with the primary objective of making money is a very myopic view of a business in fact I
Todd Combsvery myopic view of a business in fact I think that those types of businesses are not sustainable won't do well long term so I definitely think you need core principles that are very much core to the DNA of a business and there's no conflict between having core principles and making money in fact if those principles are generally good for the ecosystem then by definition the business is going to do well and if you again go back to an example of a company like Costco Costco has a rule that they will not make a gross margin of more than 15% on any product they sell they could tomorrow change those gross margins to more than 20 or 25% and the business will continue to do well it would would probably do you know much more to the bottom line but in the long run it would hurt them because it would violate the trust between them and the
Otherviolate the trust between them and the members and so I think when you create members and so I think when you create members and so I think when you create businesses which are at the core got businesses which are at the core got businesses which are at the core got great uh principles for the ecosystem great uh principles for the ecosystem great uh principles for the ecosystem the byproduct is that it'll make a lot the byproduct is that it'll make a lot the byproduct is that it'll make a lot of money but I think if you try to of money but I think if you try to of money but I think if you try to create a business where the primary and create a business where the primary and create a business where the primary and sole objective is to maximize money and sole objective is to maximize money and sole objective is to maximize money and not look at well-being of employees or not look at well-being of employees or not look at well-being of employees or wellbeing of clients then long-term wellbeing of clients then long-term wellbeing of clients then long-term those businesses don't do so well right those businesses don't do so well right those businesses don't do so well right H how do you select students and any H how do you select students and any H how do you select students and any specific part of India on or Oru specific part of India on or Oru specific part of India on or Oru throughout India we sent a girl from the throughout India we sent a girl from the throughout India we sent a girl from the Andaman Islands to IIT we have kids from Andaman Islands to IIT we have kids from Andaman Islands to IIT we have kids from Kill District in Kashmir we have kids Kill District in Kashmir we have kids Kill District in Kashmir we have kids from the southern most tip of India from the southern most tip of India from the southern most tip of India we've got kids from arunachal Pradesh we've got kids from arunachal Pradesh we've got kids from arunachal Pradesh everywhere and the secret source of what everywhere and the secret source of what everywhere and the secret source of what makes dakna work and I lucked out makes dakna work and I lucked out makes dakna work and I lucked out actually is the government of India has actually is the government of India has actually is the government of India has a amazing set of schools that nobody's a amazing set of schools that nobody's a amazing set of schools that nobody's heard of called the jawahar naad viales
Otherheard of called the jawahar naad vialesheard of called the jawahar naad viales and and I think this was the groundingand and I think this was the groundingand and I think this was the grounding achievement of Rajiv Gandhi but I don'tachievement of Rajiv Gandhi but I don'tachievement of Rajiv Gandhi but I don't think uh most people understand that sothink uh most people understand that sothink uh most people understand that so Rajiv Gandhi wanted to replicate dunRajiv Gandhi wanted to replicate dunRajiv Gandhi wanted to replicate dun school for the rural Village kids ofschool for the rural Village kids ofschool for the rural Village kids of India that Vision came to a realityIndia that Vision came to a realityIndia that Vision came to a reality there are 600 jawahar na vial these arethere are 600 jawahar na vial these arethere are 600 jawahar na vial these are residential boarding schools run by theresidential boarding schools run by theresidential boarding schools run by the government of India one in everygovernment of India one in everygovernment of India one in every District in every state of India andDistrict in every state of India andDistrict in every state of India and every Union territory and the schools goevery Union territory and the schools goevery Union territory and the schools go from sixth standard to 12th standard andfrom sixth standard to 12th standard andfrom sixth standard to 12th standard and uh they are English medium but when theuh they are English medium but when theuh they are English medium but when the kids enter the school most of them dokids enter the school most of them dokids enter the school most of them do not speak English or Hindi and like thenot speak English or Hindi and like thenot speak English or Hindi and like the iits the government runs a entrance examiits the government runs a entrance examiits the government runs a entrance exam in fifth standard across India I thinkin fifth standard across India I thinkin fifth standard across India I think more than 10,000 death centers um in 20more than 10,000 death centers um in 20more than 10,000 death centers um in 20 languages 2 million kids a year now takelanguages 2 million kids a year now takelanguages 2 million kids a year now take that language independent IQ test andthat language independent IQ test andthat language independent IQ test and the top 2% of those kids get selected to
Otherthe top 2% of those kids get selected to go to the j&v schools so each district has a school and each School takes 80 kids so you might have a district like jaur for example where 5,000 kids might apply for the 0 slots and what TNA does we have aou with the government of India where after these kids finished 10th standard it's amazing I get a spreadsheet in Norine California from the government which one of those eight locations and then they spend two years there preparing for the 11th and 12th cbsc exam but also for the I entrance exam and then we set I so we've got about 3,000 crores a year get being spent by the government of India God bless the government of India on the j&v system the government spends probably another three or 4,000 cores of the iids which is also wonderful and we have this very thin layer of Daka in the middle
Othervery thin layer of Daka in the middle which is under five cres and that 5 creswhich is under five cres and that 5 creswhich is under five cres and that 5 cres only works because there's 6,000 croresonly works because there's 6,000 croresonly works because there's 6,000 crores or 7,000 crores sitting above and belowor 7,000 crores sitting above and belowor 7,000 crores sitting above and below it so life is great one of the thingsit so life is great one of the thingsit so life is great one of the things that kind of pissed me off before Ithat kind of pissed me off before Ithat kind of pissed me off before I started Daka is that I'd go and read thestarted Daka is that I'd go and read thestarted Daka is that I'd go and read the annual report of like the John D andannual report of like the John D andannual report of like the John D and Katherine T Mada Foundation or the FordKatherine T Mada Foundation or the FordKatherine T Mada Foundation or the Ford Foundation or the Rockefeller foundationFoundation or the Rockefeller foundationFoundation or the Rockefeller foundation and what the John andand what the John andand what the John and you know I'm naming these but you couldyou know I'm naming these but you couldyou know I'm naming these but you could replace the names with any of them thatreplace the names with any of them thatreplace the names with any of them that you want to they're required by law toyou want to they're required by law toyou want to they're required by law to give away 5% of assets to maintaingive away 5% of assets to maintaingive away 5% of assets to maintain nonprofit status they give away likenonprofit status they give away likenonprofit status they give away like 5.2% and the second is specifically5.2% and the second is specifically5.2% and the second is specifically let's say John de C maata Foundation thelet's say John de C maata Foundation thelet's say John de C maata Foundation the the degree of sprinkling is incrediblethe degree of sprinkling is incrediblethe degree of sprinkling is incredible the you know you might know the maatathe you know you might know the maatathe you know you might know the maata maata fellows and so on they've got atmaata fellows and so on they've got atmaata fellows and so on they've got at least 300 different programs that thatleast 300 different programs that thatleast 300 different programs that that 5% gets sprinkled over and no nowhere in
Questioner5% gets sprinkled over and no nowhere in their annual reports did I ever read anything about a comparison between the social Roi differences between these programs ever no comparison done ever so I would think that if you have five programs you would compare them pick the best four for the year after and then the year after that from four pick three and just keep narrowing to the ones that really uh get you there and the 5% being giving away basically is designed so that the people running the foundation have jobs forever they can never be out of a job because because it's 5% of whatever is left in the pie and they just tried really hard to make sure the pie keeps growing and which is why actually I commend Bill Gates because he he and Melinda have mandated that 50 years after they gone The Gates Foundation has to go to zero and Warren
QuestionerFoundation has to go to zero and Warren Buffett has mandated that after all his money goes to the Gates Foundation when he dies in 10 years they have to spend it all and the both these foundations did this because they saw the abuse if Henry Ford came back today looked at what Ford Foundation does he would just be flabbergasted that is not what Henry Ford is all about and so I think when philanthropies get started by entrepreneurs they have a certain direction but then subsequently when you get professional managers in and especially when you don't have any cidence on those managers you get the results that we see in philanthropy today and I think the logic that bill and millind gate used in the 50 years is their perspective was there will be other bills and Mother bills and M who will have created Fortunes in the future and who will identify problems that bill and vinda cannot even conceive
Otherthat bill and vinda cannot even conceive of today so their perspective was that whatever they are able to do they want to do their good for the good of humanity let the next generation carry the torch from there and the Next Generation probably be smarter because they've got the the history so I think yeah if you set a 50e sunset that's a really good idea I also think that foundations run by entrepreneurs is really exceptional so the bilding r good Gates Foundation there's no difference I think there's still a public charity but they're a private charity but I think there's no difference between that and the Ford foundation in terms of How It's been run the difference is you have an entrepreneur who cares a lot about how the money is money spent whereas at the makata foundation they care a lot about whether they have a job next year that's
Otherwhether they have a job next year that's the driver is and so the the sprinklingthe driver is and so the the sprinklingthe driver is and so the the sprinkling continues so if there were another lawcontinues so if there were another lawcontinues so if there were another law which said that you couldn't give towhich said that you couldn't give towhich said that you couldn't give to more than five or 10 causes that wouldmore than five or 10 causes that wouldmore than five or 10 causes that would go a long ways but you know my my takego a long ways but you know my my takego a long ways but you know my my take is the best thing that entrepreneurs andis the best thing that entrepreneurs andis the best thing that entrepreneurs and Wealthy individuals can do is number oneWealthy individuals can do is number oneWealthy individuals can do is number one try to do most of the giving whiletry to do most of the giving whiletry to do most of the giving while they're alive and try to establish somethey're alive and try to establish somethey're alive and try to establish some sunsets so it doesn't continue foreversunsets so it doesn't continue foreversunsets so it doesn't continue forever another good things about capitalism andanother good things about capitalism andanother good things about capitalism and entrepreneurs there's a feedback loop soentrepreneurs there's a feedback loop soentrepreneurs there's a feedback loop so if you go down a path where it's notif you go down a path where it's notif you go down a path where it's not profitable in the end you're going toprofitable in the end you're going toprofitable in the end you're going to crash and in the end the business is notcrash and in the end the business is notcrash and in the end the business is not going to exist so basically there's agoing to exist so basically there's agoing to exist so basically there's a feedback loop in capitalism which keepsfeedback loop in capitalism which keepsfeedback loop in capitalism which keeps you on a straight and narrow pathyou on a straight and narrow pathyou on a straight and narrow path basically if you're not delivering valuebasically if you're not delivering valuebasically if you're not delivering value to your customers in the end your out ofto your customers in the end your out ofto your customers in the end your out of business that feedback loop does notbusiness that feedback loop does not
Questionerbusiness that feedback loop does not exist in in philanthropy I mean if youexist in in philanthropy I mean if youexist in in philanthropy I mean if you got like the John C te ma Foundationgot like the John C te ma Foundationgot like the John C te ma Foundation large partt of money and you keep givinglarge partt of money and you keep givinglarge partt of money and you keep giving away 5% a year and your uh investmentaway 5% a year and your uh investmentaway 5% a year and your uh investment returns are more than 5% a year itreturns are more than 5% a year itreturns are more than 5% a year it really doesn't matter what's happeningreally doesn't matter what's happeningreally doesn't matter what's happening you can go forever so there's a criticalyou can go forever so there's a criticalyou can go forever so there's a critical difference between entrepreneurship anddifference between entrepreneurship anddifference between entrepreneurship and philanthropy from that point of viewphilanthropy from that point of viewphilanthropy from that point of view where philanthropy does not have thesewhere philanthropy does not have thesewhere philanthropy does not have these Market driven signal so when anMarket driven signal so when anMarket driven signal so when an entrepreneur runs a business he has anentrepreneur runs a business he has anentrepreneur runs a business he has an idea in his head goes out with the ideaidea in his head goes out with the ideaidea in his head goes out with the idea 99% of the time that idea is wrong maybe99% of the time that idea is wrong maybe99% of the time that idea is wrong maybe 30% wrong maybe 20% wrong he has to make30% wrong maybe 20% wrong he has to make30% wrong maybe 20% wrong he has to make changes and he's continuously makingchanges and he's continuously makingchanges and he's continuously making changes zigging and zagging till hechanges zigging and zagging till hechanges zigging and zagging till he finds the path and even then he keepsfinds the path and even then he keepsfinds the path and even then he keeps kind of making changes in philanthropykind of making changes in philanthropykind of making changes in philanthropy you don't have those natural feedbackyou don't have those natural feedbackyou don't have those natural feedback loops coming back so for example what Iloops coming back so for example what Iloops coming back so for example what I did in D is I inverted the problem and
Otherdid in D is I inverted the problem and the inversion of the problem was that I was only going to go into areas where there was a feedback loop so I eliminated everything in terms of giving where there was no feedback loop I wanted a feedback loop just like an entrepreneur has and for us at Dua the feedback loop is selections of IIT percentage of kids getting accepting to iits and at it every year we get a data point from the iits we don't control that they control it and that number goes up and down and we as a team the entire management team looks at the numbers looks at the data analyzes it tries to figure out what we need to change and then adjust to it and I wanted to make sure that's the case so it's not possible to do that in many parts of philanthropy and many parts of philanthropy deserve funding even though there's no feedback loop but I think
Otherthere's no feedback loop but I think it's useful if the heads of philanthropic organizations understand that the feedback loops are important and try to set up some way to get that artificially created so it becomes just like an entrepreneural engine
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Otheroh
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