Gift Economics
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Gift economics is a different way of interacting with money and understanding what something is “worth.” In a Gift model, goods and services are not sold as they are in a market model of economics. Rather, they are given freely with no requirement of an exchange. We believe that access to clean water and working sanitary sewers are priceless.
At the same time, we do have needs as an organization operating within the current economic and social structures. Therefore, all participants are offered an opportunity to support our work. No one is required to give, and no amount is considered too small or too large.
Check out this short TEDx talk on the Gift Economy from our friend Nipun Mehta.
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Gift Economics means that People’s Plumbing does not charge a fee for our work. Working on this model means that sometimes, our services can end up costing us money. For us, a commitment to the Gift model is also a leap of faith. We operate on faith that if our work is something that the community needs, then our community will come together to sustain it. If our work is not needed, we do not want to take resources away from the many other worthy projects that are constantly emerging.
To ensure the sustainability of our work, please consider making a contribution to support not only People’s Plumbing, but the communities with which we work.
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When we show up to your home or business, we are asking for a relationship instead of a fee. We would like you to consider how you would like to support our work and our community. You will be responsible for paying for materials and rentals at your home or business, but our labor is a gift to you. You have the opportunity to gift it forward through a financial contribution to help us be sustainable and continue offering gifts to others.
Think of joy! What could you contribute that would bring joy to you in thinking of how you are helping others to get their plumbing needs met? You might stretch your budget but don’t let your contribution be stressful.
Look at our expenses and financial goals and decide how you can help us meet those goals.
Consider what it might cost if you hired a traditional company. We encourage you to get at least three quotes for a larger job.
Consider your own capacity to contribute with the realization that this can only be sustainable if people who have more capacity contribute more.
Consider a monthly contribution of $5-1,000. This could be one way for you to contribute in stages and gift it forward.
We can help you set up a fundraiser to pay for materials and/or contribute funds for labor.
Remember we are trying to pay rent! As much as we appreciate paintings and vegan chocolate they don’t keep the roofs over our heads.
Consider mutual aid projects and how you might be able to support them. This is a more circular form, or community reciprocity, where we give you something and you give to the community in another way.
Mutual aid builds power and helps people organize to help themselves, and can include everything from making meals for your neighbors to language exchange. What separates mutual aid from charity is that it is people from within a community helping others in the same community, while charity does not expect recipients to contribute anything to their own struggle.
One of the greatest gifts we can receive is if we have changed the way you think about and act in the world. The second best gift is letting us know about it! Tell us a story about something you did that you wouldn’t have done before :)
Are you unsure about anything? We love talking with you and finding answers together.
We love hearing feedback! Our goal is to serve community, so we want to know how we can improve our services.
*For individuals and organizations considering working with us, we understand that it would be more “normal” or “easier” if we presented a flat fee or a sliding scale. However, these practices go against the principles that we try to live into. For our relationship to be truly relational, we ask each community member who is considering our services to gain some understanding of what the Gift Economy is and why it matters to us. We ask that you read our upcoming zine, introductory video, and/or participate in a 20 minute presentation. We will follow up to see if you have any questions or concerns about Gift Economics and our services.
We also ask that you have an understanding of our financial needs, to look at your own financial capacity, and have an intentional conversation with your family/housemates/team. Based on all of that, you can discern how much you may be able to give to support our ongoing relationship.
This will take more time than receiving a traditional quote for services and deciding whether or not you can afford it. And yet for us, this is what it means to be in relationship with each other. To get to know each other’s story and values. We therefore encourage you not to think about what might be a good amount for you to pay as a fee for our work. Rather, ask yourself how much you want to give to support others’ ability to access our work in the future.
You can make a gift to support our work on our Contribute page here.
Principles of Gift Economics
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Pure generosity means giving without any expectation of some reward or exchange. The giving that happens is not part of a transaction; rather, it is part of the transformation of our culture and relationships. We give because the act of giving benefits and brings joy to both the giver and the recipient. In this way, People’s Plumbing offers all services as a gift, regardless of a participant’s ability to pay.
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Assigning a monetary value to all goods or services not only diminishes the true value of our gifts, but also creates a barrier to access. We are committed to practices – financial and otherwise – that allow for the full participation of as many people as possible.
In a market economy, because a monetary value is placed on goods and services, not everyone is able to access them. In a Gift Economy, all are welcome regardless of their ability to pay.
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Unlike the market economy which encourages autonomy and self-reliance, the Gift system is a reciprocal system that acknowledges the interdependence of all life - what affects one directly affects all indirectly. The responsibility to meet our needs is held collectively, as opposed to each individual being mandated to pay some set amount.
Because giving in a market system is transactional and motivated by a desire to receive something (either payment or a particular good/service), the exchange only benefits those directly involved. In a Gift system, because giving is voluntary and made out of the desire to support others in a “pay-it-forward” approach, that gift will go on to support those you may never meet.
The current market system teaches us to look at the natural world as resources to be used for our benefit. We want to look at the world through a lens of reciprocity. We are part of this world and no more important than any other part, and we want to act in ways that are beneficial for all. The current system creates scarcity, by some people hoarding more than they need so others are forced to live with less than they need. The more we can remember what resources are actually necessary for us to thrive, the more we will realize that communal thriving is possible, the less we need to rely on an economic system reliant on greed.
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Rather than living with an assumption that constant growth is always positive, we make all of our decisions with intention. As Gandhi once said, the world has enough for “everyone’s needs, not everyone’s greed.” This means having conversations about how we want to relate to money: how much we need, how we take money, what kind of growth we want, etc.
In a market economy, the constant growth mentality of “bigger is always better” is pervasive, even in nonprofits. We take a different approach, and do not always assume that having more funds and growing larger as an organization is better.
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We acknowledge that a cookie-cutter, one-size-fits-all approach to economics can perpetuate disparity. We work to honor the story, ability and capacity of each person in the room in order to create equity. The Gift system only works when those who have the capacity to give more than their “fair market share” give more than those with less capacity.
The market economy conditions us to always be on the lookout for the “best bargain,” to pay as little as we can and get the most “bang for the buck.” This approach does not always meet the needs of all parties. The Gift system looks at the ability of all parties, and reframes us to think about collective responsibility to meet everyone’s needs.
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We work to counter a culture of security and secrecy with trust and transparency. In order to empower each person to make decisions that are right for them, we are committed to a culture of radical financial and organizational transparency.
Unlike a market economy where personal and organizational finances are held as tightly guarded secrets, People’s Plumbing shares our finances with our community on a regular basis, uploading our current financial statements to our website each quarter.