Comments on: There’s Nothing Philanthropic about a Social Stock Exchange http://xchangexchange.com/blog1/2007/11/04/theres-nothing-philanthropic-about-a-social-stock-exchange/ An exploration about social stock exchanges Sat, 29 Mar 2008 03:56:47 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Sean Stannard-Stockton http://xchangexchange.com/blog1/2007/11/04/theres-nothing-philanthropic-about-a-social-stock-exchange/comment-page-1/#comment-19 Sean Stannard-Stockton Tue, 06 Nov 2007 00:40:43 +0000 http://xchangexchange.com/blog1/2007/11/04/theres-nothing-philanthropic-about-a-social-stock-exchange/#comment-19 My take is that relating "giving" to "social good" confuses inputs with outputs. There are only two relevant outputs, social value and financial value (or "personal value"). The input to get those are time, money and intellectual capital. Giving a "donation" to a politician might be done to create social value or to create personal value. Investing dollars into a for-profit startup might be done to create social value or personal value. Both inputs are likely to create a combination of personal and social value outputs. Most people think that investment-like inputs must only create personal value and that philanthropy-like inputs must only create social value. I think the key framing issue to the developing social capital markets is understanding that the full range of input-types can be used in the quest to create social value. My take is that relating “giving” to “social good” confuses inputs with outputs. There are only two relevant outputs, social value and financial value (or “personal value”). The input to get those are time, money and intellectual capital.

Giving a “donation” to a politician might be done to create social value or to create personal value. Investing dollars into a for-profit startup might be done to create social value or personal value. Both inputs are likely to create a combination of personal and social value outputs.

Most people think that investment-like inputs must only create personal value and that philanthropy-like inputs must only create social value. I think the key framing issue to the developing social capital markets is understanding that the full range of input-types can be used in the quest to create social value.

]]> By: Lucy Bernholz http://xchangexchange.com/blog1/2007/11/04/theres-nothing-philanthropic-about-a-social-stock-exchange/comment-page-1/#comment-18 Lucy Bernholz Mon, 05 Nov 2007 23:01:43 +0000 http://xchangexchange.com/blog1/2007/11/04/theres-nothing-philanthropic-about-a-social-stock-exchange/#comment-18 Some of the other sources of capital for social good include community development loan funds, social venture capital, social private equity, fair trade investments, co-op structures, community venture capital...The trick is to first identify the sources, find values for each source, then add. Philanthropy - grant dollars - would be in the mix. Some of the invested corpus might also, to the degree it is invested with mission-related ROI goals. Here's the kicker - most of philanthropy - 95% or more of the $600 billion in endowed assets (US only) would not be included, at least not as it is used in its present form. Some of the other sources of capital for social good include community development loan funds, social venture capital, social private equity, fair trade investments, co-op structures, community venture capital…The trick is to first identify the sources, find values for each source, then add. Philanthropy – grant dollars – would be in the mix. Some of the invested corpus might also, to the degree it is invested with mission-related ROI goals. Here’s the kicker – most of philanthropy – 95% or more of the $600 billion in endowed assets (US only) would not be included, at least not as it is used in its present form.

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