Is charity economically viable?
Answer:
As with anything in economics, an individual (or a company) for that matter will "buy" charity up to the point where marginal utility (the benefit of buying one more unit) equals marginal cost (the cost of buying one more unit).
Hence as long as people gain more benefit from giving to charity, than the dollar cost, then they will donate. This benefit will usually come in the form of either good publicity and goodwill, or a simple feeling of generosity and doing the right thing.
The problem is that the recipient of charity also benefits (assuming the charity is doing a good job) but this benefit is not taken into account when deciding how much to give. Thus it is only the donor's marginal benefit taken into account (rather than the total marginal benefit of the donor, the recipient and society in general).
Everyone should give a little to charity.
do on to others as they do on to you?
if you didn't have much would you like some one to help you out?
yes its the right thing to do but make sure you check the charity out first sometimes they claim to be something they are not
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