02.19.08
Analysis of Online Marketplaces Opens Dialogue on Key Questions
Keystone - a UK based consultancy led by David Bonbright - has just launched a new report entitled: ‘Online Philanthropy Markets: from ‘Feel-Good’ Giving to Effective Social Investing’? (Iam including here their own description, although have also read it through). This report examines the rapidly expanding phenomenon of online philanthropy markets and includes online platforms like GlobalGiving, Kiva, Network for Good, GiveIndia, HelpArgentina, and many more. The Keystone study finds that online philanthropy markets are relentless innovators, and they believe that some of these innovations are indeed helping to advance longstanding gaps in the performance of nonprofit organizations (such as accountability to beneficiaries and other constituents).
That said - the report also notes that there is still a long way to go - as many of the current online marketplaces still promote a traditional ‘feel-good giving’ approach to philanthropy - while marketplaces that attempt to cultivate a ‘social investment’ mentality among their users still remain a minority. Part of the challenge in cultivating an ‘investment mentality’ is that well-defined criteria for assessing the performance and impact of the organizations listed in the marketplaces remains scarce - and in general the information available in these marketplaces to donors and other social investors falls far short of any acceptable standard of systemization. The December 2007 issue of Alliance magazine actually discussed some of these challenges as well - and David Bonbright of Keystone published an interesting piece on measuring impact “What Do we Need to Know” in that issue.
Overall, through the analysis and recommendations in this study, Keystone hopes to encourage a field-wide dialogue about how to achieve the transformative potential of online philanthropy markets and about how to use innovative online tools to create the informational basis for effective social investments. They welcome feedback and comments on their website where you can download the report! Good questions and a good read!
