I remember first reading about "charitable reading" in Information wants to be free. The term was mentioned in an email which Meredith quoted from Josh Neff. Shortly afterwards, Josh Neff wrote about where he found the term: from an RPG-related forum called the Forge. I really recommend this link, because it contains practical instructions on how to do charitable reading and talks about particular pitfalls to be avoided.
Since then, the concept of charitable reading has been discussed by some other bloggers, including Walt Crawford and Jack Vinson.
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