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Slate.com reports that Donorschoose.org is utilizing market principles to revolutionize both the American education system and the non-profit world. The web site creates a market in teacher proposals where teachers themselves can post a grant request in plain language. Donors can then scroll through these proposals, and fund them in a whole, or in part. While most proposals eventually get funded, ultimately if there is no market for a proposal, it won't get funded. The advantage of the site is that the transactions are totally transparent, there isn't a middle man. Previously, donations to charitable organizations may have not gone
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