My suggestion: Donate 5% of your annual income to impactful charities
In April, I submitted an essay to an article competition titled "How to Make Estonia More Successful," organized by
Äripäev,
Estonia's leading business newspaper. The jury selected my essay as the winner for the 2024 season, awarding me the grand prize of 10,000 euros, which I donated to the
Good Deed Foundation.
You can read my essay below.
Here is very casual Google Translation of my essay.
What are you dreaming about?
I dream about quite simple things. That our children could safely go to school on foot or by bike. So that everyone at school feels supported, not defied. For communities to be strong and safe. That we could find help for our mental health concerns. I think of a Scandinavian welfare society where no one is left behind and the stronger support those in need.
Although we won't be among the ten richest countries in Europe any time soon, Estonia rightfully belongs to several other high ranking spots. According to the World Economic Freedom Index, we are ranked 8th out of 184 countries. In Europe, we are definitely in the first place if you count unicorn-status start-ups per capita. Estonia is also in the top of global educational PISA test rankings.
But there are also other, sadder rankings, in which Estonia holds the first place. We have the largest wage gap between men and women in Europe, and we are at the forefront of suicide rates in Europe. You don't always need charts to understand that we need a change for the better.
Health concerns are increasingly common because less than half of adults and only 25% of children are physically active enough. A fifth of boys drop out of the education system shortly after finishing primary school.
Where do the solutions come from?
These are real problems that require system change solutions. The state does its part and supports what is defined by laws and public policies. In most cases, these are established structures and programs that have been operating for a long time. It is true that innovative solutions also fit into some budget lines, but there is potential for social development and innovation outside of national measures as well.
We are used to think about start-ups as the main breeding ground for innovative solutions, especially in the technology sector. But where is the breeding ground for innovative social solutions? These "start-ups" are in the non-profit sector. Citizen-initiated social enterprises are closer to those in need, and they are among the first to notice issues where quick intervention creates the greatest value.
Often these "social start-ups" are working on issues that we would not like to see in the first places in international rankings. Lack of mental health care, educational inequality, chronic diseases and insufficient exercise... Without solving these problems, Estonia cannot advance also in others, much more desirable rankings. "Broken" people simply do not have enough strength for this.
As a rule, these social initiatives are staffed by small teams who try to solve big problems with very limited resources and a strong sense of mission. I am more than sure that we all want to live in the kind of Estonia they are building day by day. But I am also sure that we will really reach this goal only if alleviating society's pain points and helping those in need is a common goal for all of us.
We have to build our little Estonian future together!
A matter of choices
Six years ago, we founded the Good Deed Education Fund together with Taavet Hinrikus and a few dozen other like-minded entrepreneurs. We aimed to solve the key issues of Estonian general education. To date, we have backed and funded solutions supporting Estonian education to 80% of schools and given 44,000 students opportunities to develop their skills. Initiatives that received support from the Education Fund, so-called "educational startups", have brought new and faster solutions to the market and supported the state in implementing the education strategy.
Finding donors for the Good Deed Education Fund, like other philanthropic funds, means fundraising. Every donor's contribution helps to launch new important social initiatives and give bigger momentum to effective solutions that have already proven themselves on the market. And if you look at the donation statistics, there seems to be an abundance of donors in Estonia.
However, a closer look at the data reveals that in 2022, the year we broke all previous donation records because of Ukraine war, it was enough to give just over €2,000 to be among the TOP 1% biggest private donors. The business, which donated €6,000 during that year, was among the top 10% of donors. At the same time, only 5% of total companies made any financial donations at all. Our actual donations capability is much bigger!
What if we made a social agreement that people who earn more donate 5% of their income? If, for example, those who earn more than €5,000 a month join such a "5% Club" - we would get more than 15,000 new bigger donors, whose combined donations would contribute more than €50 million per year.
By channeling these funds into effective and impactful initiatives, important changes in Estonian society could take place. I will give some examples:
A higher income allows you to make choices. We already have the opportunity to make such choices today, which will improve the well-being of many people!
Together we can make dreams come true and shape Estonia into a country that is at the top of the charts as the healthiest, most supportive and safest place where we can all live well. Lets do it!
What are you dreaming about?
I dream about quite simple things. That our children could safely go to school on foot or by bike. So that everyone at school feels supported, not defied. For communities to be strong and safe. That we could find help for our mental health concerns. I think of a Scandinavian welfare society where no one is left behind and the stronger support those in need.
Although we won't be among the ten richest countries in Europe any time soon, Estonia rightfully belongs to several other high ranking spots. According to the World Economic Freedom Index, we are ranked 8th out of 184 countries. In Europe, we are definitely in the first place if you count unicorn-status start-ups per capita. Estonia is also in the top of global educational PISA test rankings.
But there are also other, sadder rankings, in which Estonia holds the first place. We have the largest wage gap between men and women in Europe, and we are at the forefront of suicide rates in Europe. You don't always need charts to understand that we need a change for the better.
Health concerns are increasingly common because less than half of adults and only 25% of children are physically active enough. A fifth of boys drop out of the education system shortly after finishing primary school.
Where do the solutions come from?
These are real problems that require system change solutions. The state does its part and supports what is defined by laws and public policies. In most cases, these are established structures and programs that have been operating for a long time. It is true that innovative solutions also fit into some budget lines, but there is potential for social development and innovation outside of national measures as well.
We are used to think about start-ups as the main breeding ground for innovative solutions, especially in the technology sector. But where is the breeding ground for innovative social solutions? These "start-ups" are in the non-profit sector. Citizen-initiated social enterprises are closer to those in need, and they are among the first to notice issues where quick intervention creates the greatest value.
Often these "social start-ups" are working on issues that we would not like to see in the first places in international rankings. Lack of mental health care, educational inequality, chronic diseases and insufficient exercise... Without solving these problems, Estonia cannot advance also in others, much more desirable rankings. "Broken" people simply do not have enough strength for this.
As a rule, these social initiatives are staffed by small teams who try to solve big problems with very limited resources and a strong sense of mission. I am more than sure that we all want to live in the kind of Estonia they are building day by day. But I am also sure that we will really reach this goal only if alleviating society's pain points and helping those in need is a common goal for all of us.
We have to build our little Estonian future together!
A matter of choices
Six years ago, we founded the Good Deed Education Fund together with Taavet Hinrikus and a few dozen other like-minded entrepreneurs. We aimed to solve the key issues of Estonian general education. To date, we have backed and funded solutions supporting Estonian education to 80% of schools and given 44,000 students opportunities to develop their skills. Initiatives that received support from the Education Fund, so-called "educational startups", have brought new and faster solutions to the market and supported the state in implementing the education strategy.
Finding donors for the Good Deed Education Fund, like other philanthropic funds, means fundraising. Every donor's contribution helps to launch new important social initiatives and give bigger momentum to effective solutions that have already proven themselves on the market. And if you look at the donation statistics, there seems to be an abundance of donors in Estonia.
However, a closer look at the data reveals that in 2022, the year we broke all previous donation records because of Ukraine war, it was enough to give just over €2,000 to be among the TOP 1% biggest private donors. The business, which donated €6,000 during that year, was among the top 10% of donors. At the same time, only 5% of total companies made any financial donations at all. Our actual donations capability is much bigger!
What if we made a social agreement that people who earn more donate 5% of their income? If, for example, those who earn more than €5,000 a month join such a "5% Club" - we would get more than 15,000 new bigger donors, whose combined donations would contribute more than €50 million per year.
By channeling these funds into effective and impactful initiatives, important changes in Estonian society could take place. I will give some examples:
- 2.5 million euros would ensure mental health counseling for 10,000 young people.
- 1.4 million would be spent so that 10,000 people from all over Estonia could move regularly in Kõnnime Koos walking groups throughout the year.
A higher income allows you to make choices. We already have the opportunity to make such choices today, which will improve the well-being of many people!
Together we can make dreams come true and shape Estonia into a country that is at the top of the charts as the healthiest, most supportive and safest place where we can all live well. Lets do it!