$34.4 Mil is a fair amount of cash

That’s how much was raised in Minnesota yesterday during Give to the Max Day. Here is how the Minnesota Holiday started:

In November 2009, Give to the Max Day was supposed to be a one-time only launch party for the new fundraising platform GiveMN.org with a goal of raising $500,000. At the end of the day, generous donors had given more than $14 million in just 24 hours, smashing the goal out of the water, and starting a giving holiday in Minnesota.

https://www.givemn.org/giving-events/gtmd21/totals

Gala and fund raisers are nothing new. Just ask development officers at any non-profit. And many of the techniques employed during yesterday’s day of matchmaking originated from them: a limited timeframe, matching incentives, live-counters adding up the tally to meet a goal. What is different, here, is that the platform opens up a marketplace of giving. The boundaries of where and who is trading in the assists of work in the community changed. The benefactor was no longer one cause; a theater, a shelter, a youth center. Nor were the donors just the flashy wealthy crowd at a glitzy event in a downtown venue. This market is open to all Minnesotans, who can then feel empowered by grouping with others to support their passion of choice.

People give when they see the need. Citizens agree to pay taxes as an acknowledgement of the need. But they also don’t want to be the only one giving- it is a communal activity. A formal taxation system provides assurances that others are also on board to assemble the public goods as intended. In philanthropy, a one day event provides the accounting, the final tally, which confirms success back to its audience.

One can’t help but notice the parallels to the concept of state capacity. This has been a salient term in recent years. Here is how one researcher put words to it:

The concept of state capacity—“the ability of a state to collect taxes, enforce law and order, and provide public goods”1—was developed by political scientists, economic historians, and development economists to illuminate the strong institutional contrast that parallels the economic contrast between rich and poor countries.

https://www.niskanencenter.org/state-capacity-what-is-it-how-we-lost-it-and-how-to-get-it-back/

On Give to the Max day, donors pay funds (a tax) to support their chosen community works producer, who in turn transforms the funds into their specialized public good. The enforcement of product delivery is partially enforced by laws, but mostly by the pressures of competition to be a good producer for those who depend on the services provided.

What the Give to the Max platform allows is a wider marketplace. What Give to the Max Day shows by the $34,390,470 collected yesterday from Minnesotans tall and small, urban and rural, rich or light in the wallet, is that we have a notable amount of state capacity.

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