[throw_away]

I think you may have misunderstood. I don't think that the $100k–$500k figures refers to the debt of one single particular person, but rather a bunch of individual debts sold as a block by the creditor. Also, I don't think that this is meant as a business plan. As far as I can tell, the OP doesn't plan on making any money on this.

[smsm42]

Even if you plan to run a non-profit, you still need a plan. Charities and nonprofits have business plans too.

[throw_away]

I don't see anything wrong with the plan—solicit donations & use them to forgive debt randomly with pennies on the dollar while spreading an anti-bank message. arguably, the tax implications could be problematic to the overall plan, but this doesn't seem to be your argument. Yours seems to be akin to saying Planned Parenthood doesn't have a business plan because you disagree with birth control.

[smsm42]

If you say "I'm gonna fight the evil 1% by educating people how to lead lives without debt" - that sounds like plan. If you say "I'm gonna fight the evil 1% by giving them money so people in bad debt can take more debt and irresponsible lenders could recover their costs, all while creating tax problems for the recipients of my charity" - that doesn't sound like a good plan. It's like AA giving out free beers, if I'm allowed to use analogies too.

BTW, if you look at what Planned Parenthood does, abortions are about 3% of what they do. So if their model would have 70% prevention, 25% counseling and 3% debt forgiveness, as PP does, I'd say it makes much more sense.

[ThomasGokey]

Right, we aren't making money off this. We'll be transparent as to how much we raise and where it all goes.