1. How might we influence
the flow of capital to
reach the organizations
doing the most good?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

2. PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

3. CHALLENGE:
How might we make it easier
and cheaper for nonprofits
to raise money?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

4. CHALLENGE:
How might we make it easier
for donors to find effective
nonprofits to donate to?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

5. CHALLENGE:
How might we ensure that
higher-performing nonprofits
are receiving enough donations
so that they can effectively
meet their mission?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

6. CHALLENGE:
How might we take the field of
impact investing to scale?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

7. CHALLENGE:
How might we use the tools of
impact investing and
philanthropy to generate more
social impact?
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

8. THE SPECTRUM OF MARKETS
FINANCIAL CAPITAL IMPACT INVESTING PHILANTHROPY
MARKETS MARKETS (GIVING MARKETS)
RETURN Financial Return Financial + Social Return Social Return
MEASUREMENT Financial Performance Measurement Financial + Social Measurement Social Performance Measurement
INVESTMENT • Debt • Debt • Grants
TYPE • Equity • Equity • Debt
• Grants
• Retail (mutual funds, online brokers) • Retail (online micro finance) • Retail (offline channels, online
PLATFORMS
• Institutional (Exchanges, Alternative • Institutional (Impact Funds, giving, Donor Advised Funds)
Trading Systems) emerging platforms) • Institutional (Foundations)
AVERAGE
TRANSACTION About 5% About 20%* About 30%
COST
FINANCIAL SOCIALLY
CAPITAL RESPONSIBLE
MARKET SIZE
MARKETS INVESTING
Social Screening and
Shareholder Advocacy
$50 Billion $300 Billion
$50 Trillion $7 Trillion
MARKETS FOR GOOD
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

9. FACTS ABOUT PHILANTHROPY
In general, most giving comes from many donors,
but goes to relatively few nonprofits.
How might we provide
tools for individuals to
give more effectively?
Source: 1. Figures come from the Foundation Center, the Urban Institute, the IRS, and other sources, via Disrupting Philanthropy: Technology and the Future of the
Social Sector, by Lucy Bernholz with Edward Skloot and Barry Varela
PRESENTED BY
9 © 2011 Liquidnet Holdings, Inc.

10. FACTS ABOUT PHILANTHROPY
In general, most giving comes from many donors,
but goes to relatively few nonprofits.
Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology
and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot
and Barry Varela
PRESENTED BY
10 © 2011 Liquidnet Holdings, Inc.

11. FACTS ABOUT PHILANTHROPY
In general, most giving comes from many donors,
but goes to relatively few nonprofits.
How might we provide
sufficient information
about all nonprofits?
PRESENTED BY
11 © 2011 Liquidnet Holdings, Inc.

12. FACTS ABOUT PHILANTHROPY
In general, most giving comes from many donors,
but goes to relatively few nonprofits.
Source: Giving USA Foundation (2007) Sources: Foundation Center, Slate, via Disrupting Philanthropy: Technology
and the Future of the Social Sector, by Lucy Bernholz with Edward Skloot
and Barry Varela
PRESENTED BY
12 © 2011 Liquidnet Holdings, Inc.

13. UNDERSTANDING DONORS
If we understand the various motivations driving donors,
How might we reach all
we can more fully engage them in social investing. donors, regardless of the
reasons why they give?
Source: Hope Consulting, Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors, May 2010
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

14. UNDERSTANDING DONORS
While donors say they care about nonprofit performance,
very few actively donate to the highest-performing nonprofits.
How might we get people to How might we get people How might we get people to Source: Hope Consulting,
Money for Good: The US Market
act on their interest in to care about social give to the top nonprofits, for Impact Investments and
nonprofit performance by impact and other measures not just those that are Charitable Gifts from Individual
doing some research? of performance? „good enough‟? Donors and Investors, May 2010
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

15. TOMORROW: GIVING MARKETS
To ensure that funding goes to the highest-performing nonprofits,
traditional donors will need to become social investors.
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

16. TODAY: PHILANTHROPY
Today, we do not have enough readily available, reliable, and
universal information to support the philanthropic ecosystem—the giving markets.
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

17. TOMORROW: GIVING MARKETS
With enough demand from donors and sufficient supply of information about nonprofits, we might transform the
philanthropic ecosystem into giving markets.
TRANSACTION PLATFORM FOR INFORMATION & INVESTING
The nonprofit sector will have
sufficient information about
nonprofit organizations and their “Our needs are being met and
performance, aggregated and we have a voice and a
freely flowing in a mechanism to give feedback.”
standardized and accessible
format.
“We have tools to easily measure,
manage and report our
organization’s performance. We
also have the tools to connect with
“We are able to see the impact and engage our donors. This allows
of our investments in society, us to have more social impact and
leading us to donate more efficiently attract more funding to
money to higher performing continue to do so.”
nonprofits”
PRESENTED BY
© 2011 Liquidnet Holdings, Inc.

18. TOMORROW: GIVING MARKETS
A vision of how some components of a giving markets platform might correspond to the best practices of a
successful retail market, providing a range of information to connect buyers and sellers.
PRESENTED BY
18 © 2011 Liquidnet Holdings, Inc.

19. TOMORROW: GIVING MARKETS
A vision of how some components of a giving markets platform might correspond to the best practices of a
successful retail market, providing a range of information to connect buyers and sellers.
Ability to search, browse,
or select organizations
in a variety of ways, to Easy-to-use financial
make it easier for transaction functionality
donors to find effective provides a safe, reliable
nonprofits to donate to. and efficient way to take
action and donate.
Objective information EXISTING EXAMPLES:
about the nonprofit, their
theory of change, and
why they need funding.
Seamless integration
with social media, which
builds on existing
relationships and
networks
EXISTING EXAMPLES:
Additional multimedia
helps tell the nonprofit‟s
story and connect with
their donors.
PRESENTED BY
19 © 2011 Liquidnet Holdings, Inc.

20. TOMORROW: GIVING MARKETS
A vision of how some components of a giving markets platform might correspond to the best practices of a
successful retail market, providing a range of information to connect buyers and sellers.
Information about how
others behaved, based
on powerful sales
analytics, offers insight
into important market
dynamics.
Expert reviews, “seals of
approval,” and deep
analysis of performance
inform donation
decisions.
EXISTING EXAMPLES:
Standardized data about
the nonprofit allows
comparison across
organizations.
EXISTING EXAMPLES:
PRESENTED BY
20 © 2011 Liquidnet Holdings, Inc.

21. TOMORROW: GIVING MARKETS
A vision of how some components of a giving markets platform might correspond to the best practices of a
successful retail market, providing a range of information to connect buyers and sellers.
Clear and simple visual
rating system to quickly
indicate nonprofit
performance.
EXISTING EXAMPLES:
Reviews from
beneficiaries, volunteers,
and other donors allow
for transparent
feedback.
EXISTING EXAMPLES:
PRESENTED BY
21 © 2011 Liquidnet Holdings, Inc.

22. TOMORROW: GIVING MARKETS
A vision of how some components of a giving markets platform might correspond to the best practices of a
successful retail market, providing a range of information to connect buyers and sellers.
Organizations are
intuitively categorized,
making them easier to
search.
EXISTING EXAMPLES:
PRESENTED BY
22 © 2011 Liquidnet Holdings, Inc.