navigating new social economy

8/6/2019 Navigating New Social Economy

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Copyright 2011 Lucy Bernholz. All rights reserved.1

Navigating the New

Social EconomyLucy Bernholz

www.lucybernholz.comhttp://www.philanthropy2173.com@p2173


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What is the social economy?Organizations and financial structures thatdeploy private resources for shared socialbenefits.

The sector formerly known as philanthropic,independent or nonprofit.

New enterprises, new capital

Copyright 2011 Lucy Bernholz. All rights reserved.


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Donors Choices2011 Impact Investing

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Sidecar FundsGiving CirclesOnline Giving

1991 Charitable Gift FundPrivate Foundation

Community FoundationBequests

Direct Giving

1990

Embedded Giving



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The Donors Product Portfolio

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Private Foundation

Donor Advised Fund

Direct Giving

Corporate Giving Board

Online Giving

Impact Investing

Sidecar funds

Volunteer TimeCommunity Foundation

Bequests

Giving Circle Embedded GivingPolitical Giving



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Product innovation occurred

during time of great growth in givingOverall Giving 1967-2007 Source: Giving USA 2008



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Choices for Doing Good

Social economyCorporate Social Roles

Informalnetworks

NonprofitsNot

inventedyet

Social businesses

L3C



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The Landscape, 2011



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Impact InvestingActively placing capital in enterprises andfunds that generate social and/ or

environmental good and at leastreturnnominal principal to the investor.

8 Copyright 2011 Lucy Bernholz. All rights reserved.


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Impact Investing = New Capital for GoodAnnual giving by American individuals

~ $220 billion per yearImpact Investing Now

Somewhere between $25.7 billion (CDI)and $7 trillion (SRI)

Market estimates for Impact Investing+ $100 billion per year, $1 trillion by 2020



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Building Supports for the Long Tail

GIINImpactBase

Impact Assets Social Impact Bond Guarantees Toniic Impact 50

II Exchanges

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Size

Number

as of July 2011



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Political Giving

From philanthropic perspective

Funding advocacy

Education and awareness

From political perspective

Contribute to candidate

Contribute to national committee

Contribute to local, regional, state PAC

Contribute to 501 c 3Contribute to 501 c 4

Corporate contributions

Considerations for donors

Disclosure/Anonymity

FEC limitations

Gift tax exclusionsCharitable deductibility



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Funders in the Social Economy

Donor Impact Investor

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Social PurposeSocial returns

Networks for Good



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Why it matters New organizational forms bring new talent

and new strategies (new forms for good) New capital follows/sparks growth (newmoneyfor good) Transparency, accountability, oversight

differ across forms (new rules for good)



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More info:[email protected]@p2173All publications:www.lucybernholz.comhttp://www.philanthropy2173.com


navigating new social economy

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