Do we think the wrong way about charity?

I watched this video this morning and it was very thought provoking. It basically challenges the way we think about charities with Dan Pallotta stating that he believes the way we think about charity is wrong. He feels that the fact that the nonprofit sector being viewed as not paying competitive salaries keeps the best and brightest from dedicating their time to charities and makes the charities not as efficient as they could be.

I'm not sure if I agree with him that the solution alone is to increase nonprofit salaries, I personally think that some of the CEO salaries in the profit sector are obscene when compared to what the average employee makes. Nonprofit salaries should be higher, but that alone without addressing the "haves and have not" variance, seems to create a situation where the employees who do the lions share of the work, suffer under either model. But, I encourage you to watch the video and make up your own mind.