'Online philanthropy markets: From 'Feel-Good' giving to effective social investing?'

18 February, 2008

Online platforms like GlobalGiving, Kiva, Network for Good, GiveIndia, HelpArgentina, and so many more – hold the potential to transform the quality and quantity of resources available for domestic and international development. But can they realise that potential? Can they really revolutionise philanthropy?

With support from the Aspen Institute's Nonprofit Sector Research Fund, Keystone has undertaken a research project to answer these questions. Our breakthrough study 'ONLINE PHILANTHROPY MARKETS: FROM ‘FEEL-GOOD’ GIVING TO EFFECTIVE SOCIAL INVESTING?' examines the rapidly expanding phenomenon of online philanthropy markets and details the opportunity that they have to create the informational basis for results-oriented giving and serving as a lever for greater accountability and effectiveness of social purpose organisations.

The study finds that online philanthropy markets are relentless innovators. Some of their innovations are helping advance longstanding gaps in the performance of nonprofit organisations, such as accountability to beneficiaries and other constituents of their work.

Yet, there is a long way to go. Many of the markets still promote a traditional ‘feel-good giving’ approach to philanthropy, while those that cultivate a social investment mentality among the users of their platforms remain a minority. One searches in vain for well-defined criteria for assessing the performance and impact of the organisations listed in the markets, and the information available to donors and other social investors for making their decisions falls far short of any acceptable standard of systemisation.

Through the analysis and recommendations of this study, Keystone aims to spark 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. Click below to post your comments. We are looking forward to hearing from you!

Attachment	Size
Keystone_Online Philanthropy Markets.pdf	480.75 KB

Philanthropy markets have a

Philanthropy markets have a number of significant advantages over traditional nonprofits but they will need to find ways to increase the amount of information available to donors and lenders if they are going to continue to grow. Cell phones may become the portal through which the third world participates in philanthropy markets. As the Facebook/Craigslist generation becomes a larger part of the donor community, they may be willing to exchange the radical efficiencies of the marketplace approach, for a less perfect, retrospective, Craigslist-like approach to fraud. If more transaction data is hosted on servers located in the developed world, there may be enough market data to use the same computerized techniques the credit card companies use today to spot fraud. Kiva and DonorsChoose captured the imagination of the folks at our event, I think, because most people instinctively believe that the immediacy and emotional power of engaging directly with a borrower or recipient and the inherent efficiency of a lean market place approach to philanthropy already outweigh the risks, and that the balance between opportunity and risk will shift further to opportunity as information and information technology becomes more broadly distributed in the developing world.

By Sebastian at Thu, 2008-06-05 01:29 | login or register to post comments

Online Philanthropy - The Way to Go >>>>

The report highlights a noticeable shift in donor trends
and shows the effect of "Internet" based giving which
is bound to change every aspect of Social Work.

Not only does "internet giving" make it easier, simpler
and quicker for the donor but also acts as an enabler
for NGOs who grabble for funds in the real world.

Online reports from NGOs, increase in accountability
and transparency will yield higher number of online
donations and ultimately change mindsets from "feel
good" to "effective social investing"

These trends will only get better if Non Profits
realise the importance of online presence and online
reporting (accountability) failing which this trend
could stagger before reaching its real potential.

Good observation & Great Work from the Team at Keystone.
Online Giving - seems like the way to go >>>>

Mr Percy Ghaswala
Trustee,
Ghaswala Vision Foundation
Mumbai,
I N D I A
+91-98208 63931
percy@ghaswalafoundation.org

By percysg at Sun, 2008-03-02 09:09 | login or register to post comments