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AIDS Ride Founder Dan Pallotta Gives Powerful TED Talk on Why Charitable Giving Industry is Broken: VIDEO

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Dan Pallotta, known for creating the multi-day charitable event industry which included the AIDS Rides and Breast Cancer 3-Day events, received a standing ovation for his TED talk about how charity is dysfunctional and his plans to transform it. Pallotta is now president of Advertising for Humanity, which helps foundations and philathropists transform the growth potential of their favorite grantees.

Pallotta says there's an apartheid between the non-profit and the rest of the world that discriminates against the for-profit sector in several different ways, and it's holding back the success of the world's charities. It's what led to the shutdown of Pallotta Teamworks back in 2002 after the firing, all at once, of 350 employees, who were seen as "overhead", and Pallotta talks about this incident, and why it shouldn't have happened.

"This is what happens when we confuse morality with frugality."

Watch his speech, AFTER THE JUMP...

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