I was listening to a pledge drive on the radio, and they had several "Challenge Grants" in which anonymous donors put up $5,000 or more if a certain number of callers make a minimum pledge. Does anyone else calculate the ROI on these things? One challenge offered $20,000 if 2,000 callers would pledge $360 in an hour. That's a grant of 1/36, or 2.78%. Aren't there bonds or CDs that would return more so you could just invest it and give the charity the total return?
I know these are mostly psychological ploys - each of the 2,000 donors can say their pledge was the key to $20,000 - but still. Building up excitement with the fuzzy math seems even a little dishonest to me. But I might just be being curmudgeonly.