markets for good presented by liquidnet for good

PRESENTED BY

© 2011 Liquidnet Holdings, Inc. © 2011 Liquidnet Holdings, Inc.

How might we influence

the flow of capital to

reach the organizations

doing the most good?

PRESENTED BY

© 2011 Liquidnet Holdings, Inc. © 2011 Liquidnet Holdings, Inc.

PRESENTED BY

© 2011 Liquidnet Holdings, Inc.

How might we make it easier

and cheaper for nonprofits

to raise money?

CHALLENGE:

PRESENTED BY


How might we make it easier

for donors to find effective

nonprofits to donate to?

CHALLENGE:

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How might we ensure that

higher-performing nonprofits

are receiving enough donations

so that they can effectively

meet their mission?

CHALLENGE:

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How might we take the field of

impact investing to scale?

CHALLENGE:

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How might we use the tools of

impact investing and

philanthropy to generate more

social impact?

CHALLENGE:

PRESENTED BY


THE SPECTRUM OF MARKETS

FINANCIAL CAPITAL MARKETS

Financial Return

Financial Performance Measurement

• Debt

• Equity

• Retail (mutual funds, online brokers)

• Institutional (Exchanges, Alternative

Trading Systems)

About 5%

FINANCIAL

CAPITAL

MARKETS

$50 Trillion

SOCIALLY

RESPONSIBLE

INVESTING

Social Screening and

Shareholder Advocacy

$7 Trillion

RETURN

MEASUREMENT

PLATFORMS

INVESTMENT

TYPE

AVERAGE

TRANSACTION

COST

MARKET SIZE

IMPACT INVESTING MARKETS

Financial + Social Return

Financial + Social Measurement

• Debt

• Equity

• Grants

• Retail (online micro finance)

• Institutional (Impact Funds,

emerging platforms)

About 20%*

$50 Billion

PHILANTHROPY (GIVING MARKETS)

Social Return

Social Performance Measurement

• Grants

• Debt

• Retail (offline channels, online

giving, Donor Advised Funds)

• Institutional (Foundations)

About 30%

$300 Billion

MARKETS FOR GOOD

PRESENTED BY


Source: 1. Figures come from the Foundation Center, the Urban Institute, the IRS, and other sources, via Disrupting Philanthropy: Technology and the Future of the

Social Sector, by Lucy Bernholz with Edward Skloot and Barry Varela

FACTS ABOUT PHILANTHROPY

9

In general, most giving comes from many donors,

but goes to relatively few nonprofits.

How might we provide

tools for individuals to

give more effectively?

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10



Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology

and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot

and Barry Varela

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How might we provide

sufficient information

about all nonprofits?

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12



Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology

and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot

and Barry Varela

PRESENTED BY


UNDERSTANDING DONORS

If we understand the various motivations driving donors,

we can more fully engage them in social investing.

Source: Hope Consulting, Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors, May 2010

How might we reach all

donors, regardless of the

reasons why they give?

PRESENTED BY


UNDERSTANDING DONORS

While donors say they care about nonprofit performance,

very few actively donate to the highest-performing nonprofits.

How might we get people to

act on their interest in

nonprofit performance by

doing some research?

How might we get people

to care about social

impact and other measures

of performance?

How might we get people to

give to the top nonprofits,

not just those that are

„good enough‟?

Source: Hope Consulting,

Money for Good: The US Market

for Impact Investments and

Charitable Gifts from Individual

Donors and Investors, May 2010

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TOMORROW: GIVING MARKETS

To ensure that funding goes to the highest-performing nonprofits,

traditional donors will need to become social investors.

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TODAY: PHILANTHROPY

Today, we do not have enough readily available, reliable, and

universal information to support the philanthropic ecosystem—the giving markets.

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With enough demand from donors and sufficient supply of information about nonprofits, we might transform the

philanthropic ecosystem into giving markets.

TRANSACTION PLATFORM FOR INFORMATION & INVESTING

“We are able to see the impact

of our investments in society,

leading us to donate more

money to higher performing

nonprofits”

“We have tools to easily measure,

manage and report our

organization’s performance. We

also have the tools to connect with

and engage our donors. This allows

us to have more social impact and

efficiently attract more funding to

continue to do so.”

“Our needs are being met and

we have a voice and a

mechanism to give feedback.”

The nonprofit sector will have

sufficient information about

nonprofit organizations and their

performance, aggregated and

freely flowing in a

standardized and accessible

format.

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A vision of how some components of a giving markets platform might correspond to the best practices �of a

successful retail market, providing a range of information to connect buyers and sellers.

PRESENTED BY


EXISTING EXAMPLES:

EXISTING EXAMPLES:


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Easy-to-use financial

transaction functionality

provides a safe, reliable

and efficient way to take

action and donate.

Seamless integration

with social media, which

builds on existing

relationships and

networks

Ability to search, browse,

or select organizations

in a variety of ways, to

make it easier for

donors to find effective

nonprofits to donate to.

Objective information

about the nonprofit, their

theory of change, and

why they need funding.

Additional multimedia

helps tell the nonprofit‟s

story and connect with

their donors.

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Information about how

others behaved, based

on powerful sales

analytics, offers insight

into important market

dynamics.

Standardized data about

the nonprofit allows

comparison across

organizations.

EXISTING EXAMPLES:

Expert reviews, “seals of

approval,” and deep

analysis of performance

inform donation

decisions.

EXISTING EXAMPLES:

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Clear and simple visual

rating system to quickly

indicate nonprofit

performance.

EXISTING EXAMPLES:

EXISTING EXAMPLES:

Reviews from

beneficiaries, volunteers,

and other donors allow

for transparent

feedback.

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Organizations are

intuitively categorized,

making them easier to

search.

EXISTING EXAMPLES:

markets for good presented by liquidnet for good

Economy & Finance