02.24.08

Xigi.net Launches First Social Capital Index

Posted in exchanges, funds, information hubs at 2:27 pm by Andrea McGrath

Realizing that the Social Capital Market has reached a point its own index is needed - the folks at xigi.net have just launched the Social Capital Index which will track investments in the social capital market - including social enterprise, (health, education and workforce development) fair trade, digital inclusion, and some of the clean tech and microfinance investments. The index will help investors and entrepreneurs keep up-to-date on what is happening in this market - and it will create a place where both buyers and sellers can access research on competition and comparable investments. As the xigi team states - these emerging markets need a research hub to help people get smarter faster. The SoCap Index has three parts, including an asset class fan that ranges from debt to equity to strategic grants - and a fund matrix which describes some of the funds in the Social Capital Market. Over time the goal is that the SoCap Index will create context so investors can discover potential co-investors - and entrepreneurs can find investors and partners. Another goals is that the SoCap Index will reach enough of a critical mass of investment information that it will become a reliable, objective, third party validator of the social capital market’s growth, trajectory, variety and market size. Kudos to the xigi folks (one of whom is Kevin Jones - our collaborator on the xchangexchange) for this important next step

Permalink 2 Comments

02.19.08

Analysis of Online Marketplaces Opens Dialogue on Key Questions

Posted in rating agencies, Story Index, information hubs, meaning as metrics at 1:24 pm by Andrea McGrath

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!  

Permalink Comments

11.16.07

One Word: Don’t Think. Just Write.

Posted in Story Index, information hubs at 12:18 pm by Samantha Beinhacker

One Word. Don’t Think. Just Write.

The philanthropic landscape is littered with remnants of failed attempts to quantify the impact of nonprofits’ activities. High-impact models, quantitative measures, improved business management– these are just some of the tools bandied about. Much has been written about the failure of these systems to adequately capture and track the cumulative value of resources for good; and worse, the harm they can wreak on social change efforts.

How about envisioning a new way of doing this: using words rather than numerics to understand core competencies and stakeholders’ perspectives about value and impact?

If you could express in one word the impact of your most treasured nonprofit or mission-based social enterprise, what would that one word be? Write that one word down in the comments section below. And then start composing your impressions of that word– the meanings it connotes for you. You have sixty seconds to write about it. Don’t think. Just write.

Permalink 1 Comment

10.28.07

The Economic Naturalist

Posted in Story Index, information hubs, economics at 11:07 am by Samantha Beinhacker

This morning I stumbled upon an essay by Robert H. Frank, an economist at the Johnson School of Management at Cornell University, and author of “The Economic Naturalist.”

He argues that the study of economics is dismally taught and dismally understood. He suggests that rather than teach all the “horrible equations and graphs,” an alternative method should be deployed– that of storytelling and narrative. He writes: “The form in which ideas are conveyed is important. Perhaps because our species evolved as storytellers, the human brain is innately receptive to information in narrative form.”

Frank asks his students to pose an interesting question based on something they’ve observed or experienced, and then they must use basic economic principles to explain it– in no more than 500 words. Most students present answers invoking the “cost-benefit” principle which says that a rational person should only take actions whose benefits outweigh their costs. Read more from Frank here.

Basic economic principles, he says, are not rocket science. They are accessible to most children (and perhaps even to those of us who are desperate to come up with methods to value the impact of the social capital market!).

This method, “the economic naturalist” principle, harkens back to the field of biology that uses Darwinian principles to interpret the traits and behaviours of living things.

My take-away over coffee this morning is, as Frank writes: “… in light of the low bar established by traditional courses, there seems little risk in trying something different.”

What shall we try?

Permalink 2 Comments

10.27.07

xchangexchange seeks thought partners

Posted in exchanges, information hubs, transparency at 8:36 am by Samantha Beinhacker

Lucy Bernholz, blogger extraordinaire on all aspects of “giving”, “capital markets”, and the blending of these worlds, has joined our team to consider the issues we’re posing in this dialogue of xchangexchange.

Lucy has recently posted about xchangexchange in her own blog and encourages others to join in the conversation. She writes:

“So, if we’re really asking questions about the role of philanthropic funds within a social capital stream, we had best at least start with a sense of what dollars go where, what dollars come from where, and how we value, access, count, and use these dollars. In other words, we’re back to my previous question about what mix of revenue (philanthropic, social investment, commercial investment, fair trade, social venture funds, etc) is actually funding public goods/services.

This is, I believe, still the key question, and one which is being taken up by some very thoughtful folks running the xchangexchange - which has the intellectual horsepower to become a hub of thinking about the changing capital markets. I’m going to move my conversation, questions, and the insights I received about the value of various elements of the blended value map over to the xchangexchange conversation - join me over there.”

We cannot do this alone: please join us on the exploration conversation!

Permalink Comments

10.21.07

Social Marketplace: What Could This Be?

Posted in exchanges, rating agencies, Story Index, information hubs at 3:17 pm by Samantha Beinhacker

The William and Flora Hewlett Foundation is engaged in a fact-finding investigation to assess the most effective tools and models to assist decision-making in philanthropic investment. Calling it a “social marketplace” of information for the philanthropic community, the tool (or tools) would probably be some kind of technology-based application, according to Susan Bell, director of Hewlett’s philanthropy program. You can read the full interview here.

I suggest there is an important role these emergent social stock exchanges can play in the development of this information tool. Perhaps the Story Index might help? We’ve defined the Story Index as an attempt to create a Rosetta Stone between all the nascent exchanges, rating agencies and analyst groups that are arising, trying to determine common denominators of the value of “businesses doing good” that are best encapsulated in narratives.

Permalink Comments

10.18.07

Blogs: Adding value to social capital conversations

Posted in information hubs, transparency at 6:44 pm by Andrea McGrath

Sean Stannard Stockton - principal of the blog Tactical Philanthropy and a new member of the blog team at SSIR (see the full team here) - posted an interesting note on his recent conversation with Paul Brest of the Hewlett Foundation and why Paul should start a blog (Sean builds on Paul’s argument for an information marketplace on social impact data). The common thread among both of these authors is discussing the value of “marketplaces” for information. As Sean states: “marketplaces are not just a collection of transactions but a “swarm” of interpersonal interaction between people (see xigi). Financial markets are virtual - but no less human… this transition (to virtual markets) does not JUST require data but conversations”.  He argues that conversations are the key to growth in philanthropy, and we feel conversations are just as important to the growth in many types of social capital - as well as to the development of social capital market infrastructure (story behind the xchangexchange). He also makes the point that it essential for funders to join in the dialogue - and we agree (see the full post here)    

Permalink 1 Comment

10.15.07

Another Innovation Exchange

Posted in information hubs at 1:16 pm by Andrea McGrath

It seems the UK is becoming a hotbed of social innovation networks and exchanges. The Young Foundation has launched SIX (Social Innovation eXchange)- a new global network of networks to promote social innovation. SIX brings together people and organisations involved in innovation across the fields of technology, design, cities, social entrepreneurship, public policy and business. Its network spans sectors as diverse as culture, education, health and the environment. SIX aims to develop existing and new links with similar organisations and social enterprises all over the world, providing a network of networks. By connecting people, bringing together resources and sharing ideas and practical solutions, SIX will raise the profile of Social Innovation, and help accelerate the process and its effects all over the world  The Social Innovation eXchange (SIX) is a partnership of the Young Foundation, Cisco, Global Ideas Bank, Kaos Pilots, MIK, OECD, SEP-Sustainable Everyday Project, School for Social Entrepreneurs, Tallberg Foundation, and many others working on social innovation to meet unmet needs 

Permalink 1 Comment

10.14.07

Emerging market information hub

Posted in information hubs, prediction markets at 6:05 pm by kevindjones

Here is an information hub in an emerging market; that of prediction markets. kind of self important, but he seems to be serious and has compiled a lot of resources. it’s one model for us to look at.

Permalink Comments