There are two kinds of philanthropy products: financial products and information products. They used to be bundled together, in the form of foundation staff, personal advisors, or community foundation program officers. In the early 1990s the advent of national donor advised funds showed that a huge market existed for unbundled products. The market worked, but now we are seeing another change in philanthropic giving due to the rise of the internet.
The Global Impact Investment Initiative (GIIN) is an important, but still forming, coalition of investors who focus on both social and environmental impact as well as financial return. GIIN wants to have a positive impact on poverty, economic justice and a sustainable environment. That means it needs to counter the exclusive nature of its innate and valuable club and be sure to include the voices and the perspectives of all; it has to be inclusive.
THE UNFINISHED PRESIDENCY by Douglas Brinkley Review by John Wood
When donor gifts are public, social approbation is reward enough.
From pink ribbons to Product Red, cause marketing adroitly serves two masters, earning profits for corporations while raising funds for charities. Yet the short-term benefits of cause marketing—also known as consumption philanthropy—belie its long-term costs. These hidden costs include individualizing solutions to collective problems; replacing virtuous action with mindless buying; and hiding how markets create many social problems in the first place. Consumption philanthropy is therefore unsuited to create real social change. —By Angela M. Eikenberry
For this venture capitalist, it all comes down to connecting with people – from family to coworkers to customers.
Expressions of gratitude motivate others’ prosocial behavior. When people are thanked for their efforts, they experience stronger feelings of social worth, which inspires them to engage in further helpful acts. In short, gratitude proves to be the gift that keeps on giving because it makes others feel valued.
Social entrepreneurs, those organizations and individuals who work to improve major social issues, don't have the networks and financial systems of traditional entrepreneurs, Sally Osberg, president of the Skoll Foundation told a Stanford MBA audience. Like Ginger Rogers dancing in a 1940's musical, they face the same issues as traditional entrepreneurs, but must do it backwards in high heels.
Social enterprises hold potential to "effect the kinds of changes our society needs right now," social entrepreneur Rupert Scofield told a Stanford student audience.
In this Spring 2011 Prosocial Behavior Research Column, Frank Flynn explores research showing that the most generous, trusting, and helpful people are not those with more money, but, rather, those with less. Individuals in lower socio-economic classes tend to act in a more prosocial fashion because of a greater commitment to egalitarian values and heightened feelings of compassion for others. Put simply, the life stressors and challenges faced by those who struggle economically often spur greater social cooperation. Might the "haves" take a lesson from the altruism of the "have nots?"
A new evaluation tool allows donors and investors to track their investments and compare their data to those of organizations doing similar work.
The Posse Foundation sends diverse students to college together so that they can lean on each other and lead their schools. —By Chitua Alozie
In the for-profit world, the term “investment” has clear meaning and investors have sophisticated techniques for spotting and growing the most promising companies. Yet foundations and other nonprofit donors have not developed similar clarity or approaches. As a result, the nonprofit sector’s greatest gems often languish well below their full potential. By better translating for-profit concepts, donors can learn how to scout out and grow the best nonprofits. Likewise, certain nonprofits can take a page from business’s playbook and learn how to attract cash for expansion. —By William Foster
MBA students turn their attention to social enterprise.
Just do it—later.
Let’s not confuse financial innovation in philanthropy with excessive risk taking.
Even in bad times, how can we afford not to make social improvements?
The field of socially responsible investing is still in very wild and hostile territory.
Stock is not the only asset that defines donors’ wealth.
Pivotal pieces that have influenced the “base of the pyramid” theory as a way for business to alleviate global problems.
Mission, vision, and values are the essential ingredients of a transformational process that brings philanthropists and organizations together to meet critical community needs. Kay Sprinkel Grace approaches fundraising with an attitude of pride and power. In this audio lecture, she explains how donors are inspired to invest in an organization that communicates shared beliefs by taking real action to benefit those in need.
In this audio lecture recorded at the 2007 Nonprofit Boot Camp, Scott Ullman provides a wealth of practical information and how-tos for developing a fundraising campaign. Concrete examples based on a successful nonprofit illustrate both the day-to-day operations and the leadership skills needed to guide any organization towards good planning habits, successful execution, and a sustainable fundraising strategy.
In this audio lecture, Scott Ullman walks his audience of nonprofit executives gathered at the 2007 Nonprofit Boot Camp through the steps of planning a fundraising campaign, including how to integrate fundraising into the day-to-day activities of a nonprofit organization. This program is geared to people who have never undertaken a fundraising plan before, but offers great advice for anyone looking to sharpen their strategy.
For years, many believed that socially responsible investments could simply not hold up to traditional investments. In this panel discussion from the Stanford 2005 Net Impact Conference, organized by the Stanford Business School, social capital market experts dispel the myths associated with socially responsible investing, and look toward the future of what is to come as more and more funds offer social choices.
In turbulent times like ours, we need “hard-edged hope,” says Jacqueline Novogratz, the much-celebrated founder of the Acumen Fund. Affirming that the world is indeed a better place now than it was 40 years ago, she traces her own journey from a childhood witnessing racial inequities all around her in Detroit to a career leading the field of social impact investing. Novogratz rallies the community of Stanford business graduates to be part of the new generation of innovative problem solvers.
How do environmental challenges create growth opportunities, new markets, and innovation? Two Goldman Sachs managers discuss how their investment firm is making the financing of corporate deals contingent upon the incorporation of increasingly stringent environmental criteria.
Community foundations have become an increasingly common outlet for charitable giving in the United States. In this panel discussion, led by Julie Juergens, the director of the Center for Social Innovation, community foundation leaders discuss innovative models for foundations as well as challenges faced by this sector.
The nonprofit sector delivers social value and the for-profit sector delivers economic value, right? Wrong! Jed Emerson argues that value is nondivisible, whole, and blended. He invites us to think beyond philanthropy, corporate social responsibility, social enterprise, and other limiting mindsets.
Shifting demographics among donors, fundraisers, and the communities they serve call on nonprofit organizations to think about diversity on many levels. How can you connect with donors who are different from you? How does inclusiveness strengthen your organization? In this audio lecture, gerald Richards and Dee Dee Nguyen explore these questions at the 2007 Nonprofit Boot Camp, reflecting on how to reach across the divides of ethnicity, culture, gender, sexual orientation and other differences to strengthen bonds and create new opportunities.
Mission, vision, and values are the essential ingredients of a transformational process that brings philanthropists and organizations together to meet critical community needs. Kay Sprinkel Grace approaches fundraising with an attitude of pride and power. In this audio lecture, she explains how donors are inspired to invest in an organization that communicates shared beliefs by taking real action to benefit those in need.
In this audio lecture recorded at the 2007 Nonprofit Boot Camp, Scott Ullman provides a wealth of practical information and how-tos for developing a fundraising campaign. Concrete examples based on a successful nonprofit illustrate both the day-to-day operations and the leadership skills needed to guide any organization towards good planning habits, successful execution, and a sustainable fundraising strategy.
In this audio lecture, Scott Ullman walks his audience of nonprofit executives gathered at the 2007 Nonprofit Boot Camp through the steps of planning a fundraising campaign, including how to integrate fundraising into the day-to-day activities of a nonprofit organization. This program is geared to people who have never undertaken a fundraising plan before, but offers great advice for anyone looking to sharpen their strategy.
In 2009, software giant SAP funded an initiative that aims to reinforce the shea nut and butter value chain in Ghana. The program, which also involves microfinance organizations PlaNet Finance, Grameen Ghana and Maata-N-Tudu, uses microfinance, education, and information technology to improve the conditions of shea women. Since enrolling in the program, women have seen significant improvements in income. This case study examines program progress to date and makes recommendations for program improvements using a value chain development framework.
The Kinetics and Michael J. Fox Foundations both support research on Parkinson’s disease. This second case explores how these two organizations collaborate toward a common mission.
John Goldman established the South Peninsula Jewish Community Teen Foundation in 2003, an innovative program that teaches Bay Area Jewish teens to run their own charitable foundation by developing mission statements, raising money, and distributing funds. As of 2009, the program has scaled to four chapters and raised and distributed $178,321 in funds.
The best nonprofits don’t necessarily get the most money, observed William and Flora Hewlett Foundation's Philanthropy Program officer Jacob Harold and president Paul Brest in 2007. From there they started exploring how they could improve the marketplace and how donors give their money. To that effect they hired consulting firm McKinsey & Company to explore the online information marketplace for giving space at a macro level, looking at trends and opportunities. Armed with data they then tried to figure out what to do.
The Kinetics and Michael J. Fox Foundations both support research on Parkinson’s disease. This first case describes the creation, mission, and strategy of the two organizations.
The X PRIZE Foundation originated as prize competitions for significant development in the exploration of outer space. Several problems faced the organization as it began to focus on fields outside of space, including whether prize competitions could work in areas such as poverty.
The Acumen Fund provides modest amounts of capital, combined with business expertise, to help build enterprises that would serve the poor. The case describes the fund’s approach to helping address water resource problems in developing countries.
The Canary Fund supports the development of methods for early cancer detection. This first case describes the choice to sponsor a high-profile racing event to raise funding and awareness.
A conference at Stanford brought together professionals from foundations to share best practices, discuss emerging innovations, and build professional networks. This summary presents key issues discussed.
The Altman Foundation was established to serve the people of New York City. By 2005, the foundation was poised to take its strategic philanthropy to the next level by implementing a broader system of research and evaluation.
In December 2000, New Schools Venture Fund was debating the role it should play in helping a for-profit investee, LearnNow, attract new capital. Should New Schools, a public charity seeking to improve K-12 education, be investing in for-profit ventures?
In December 2000, New Schools Venture Fund was debating whether, as a public charity seeking to improve K-12 education, it should be investing in for-profit ventures. Part B of the case provides an update on how New Schools Venture Fund is approaching these questions.
How does one think systematically about innovations in philanthropy? Innovations explored include endeavors such as the professional foundation and federated community campaigns, as well as modern innovations such as charitable giving funds, e-philanthropy, and venture philanthropy.
US Forest Capital has proposed the use of tax-exempt revenue bonds to help nonprofits manage forestland more sustainably. Now the organization must convince Congress to amend tax codes accordingly.
In February 1999, the Amy Biehl Foundation Trust was preparing to expand its operations outside Cape Town, South Africa. However, a strike at one of their revenue-generating enterprises, and financial irregularities at one of their newest programs, threatened to thwart the Foundation's plans.
Young companies trying to enter parts of the health care industry by focusing on helping patients stay healthy and allowing safety net providers to use their resources have a hard time attracting venture capital funds that focus more on traditional profit. A recent article by two Stanford Graduate School of Business researchers argues that it's time to change this pattern.
Social pressure plays a major role in determining corporate strategy and performance according to an award-winning paper coauthored by Professor David Baron. The researchers find that social pressure and social performance reinforce each other, greater social pressure is associated with lower financial performance, and financial and social performance are largely unrelated.
Asking would-be donors for their time, not their money, is a better way for charities to increase donations, says professor Jennifer Aaker. Asking donors first to volunteer their time can positively shift their willingness to give both time and money.
This study presents fundamental concepts of markets, capital markets, and social capital markets. It also highlights select initiatives underway in early 2007 that sought to improve the functioning of social capital markets.
This essay explores how the lines are blurring between for-profit businesses and nonprofits that do social good. It outlines examples of companies that embody "blended value" and discusses barriers to sustainable capitalism, and the role of philanthropy in supporting it.
Roger is currently starting an investment partnership for affordable housing in Charlotte, North Carolina.
In turbulent times like ours, we need “hard-edged hope,” says Jacqueline Novogratz, the much-celebrated founder of the Acumen Fund. Affirming that the world is indeed a better place now than it was 40 years ago, she traces her own journey from a childhood witnessing racial inequities all around her in Detroit to a career leading the field of social impact investing.
Laura Arrillaga-Andreessen explains how to make your giving matter more.
The poorest regions of the world pose high risks for microfinance. Brian Cox, President of MFX Solutions, discusses how currency risk education can increase the flow of resources to Africa and other high-risk regions.
Daryn Dodson is passionate about identifying and developing leaders with a social conscience. He has turned that passion into action by promoting entrepreneurship in post-Katrina New Orleans and in his current impact investment consulting role.
GIVE SMART: Philanthropy That Gets Results by Tom Tierney & Joel L. Fleishman
Impact Investors at Toniic aim to create an ecosystem for impact investing that mirrors the Silicon Valley way of doing deals. They know relationships are the key to keeping money moving.
In 2009, software giant SAP funded an initiative that aims to reinforce the shea nut and butter value chain in Ghana. The program, which also involves microfinance organizations PlaNet Finance, Grameen Ghana and Maata-N-Tudu, uses microfinance, education, and information technology to improve the conditions of shea women. Since enrolling in the program, women have seen significant improvements in income. This case study examines program progress to date and makes recommendations for program improvements using a value chain development framework.
Taking from the rich and giving to the poor is the philosophy behind the aptly named Robin Hood Foundation, one of the most influential philanthropies today. Happily, the "takers" in this case are also the givers -- wealthy board members and others who have joined forces in one of the greatest extended campaigns of all time to significantly reduce poverty in New York City.
Chase Your Dream Skoll Advises Class of 2010 "Define your dream and chase it with as much rigor and authenticity as you can muster," entrepreneur and philanthropist Jeff Skoll advised Stanford Graduate School of Business 2010 graduates.