James Watt’s Post

A super-interesting conversation on the role of crowdfunding and philanthropy on this episode of KQED's Forum podcast. Here's my take on it. The answer is YES. Crowdfunding in its current form is still a relatively small portion of Philanthropy. It is growing, but so are the total dollars raised through more traditional philanthropy such as annual giving, major gifts, planned giving, etc. However, we have definitely seen a reduction in the percentage of Americans who give to charitable causes on an annual basis. And this is particularly for younger generations. So, perhaps crowdfunding is a way to reach new donors, who otherwise would not engage with traditional philanthropic channels. In addition, like traditional philanthropy, crowdfunding is not always fair or equitable. Individuals with a big set of social media followers raise more than those individuals who don't. Those who come from higher tax brackets also tend to raise more than individuals with lower incomes. Lastly, we cannot depend on philanthropy or crowdfunding to replace our social services. Instead, they can play a complementary role to a community's social services. And philanthropy can also test and incubate different programs and ideas. Those that work can then be expanded and replicate. What do you think? Is Crowdfunding a Public Good or a Sign of Society’s Failures? https://lnkd.in/gZnysBid #philanthropy #philanthropymatters #crowdfunding

Thank you to Entrepreneur Magazine for including Homeboy Industries in their article "Charities Are Getting Down to Business" for their latest magazine issue. Check out the excerpt below to learn more about why more charitable leaders are taking a page from their for-profit peers: CHARITY DOGMA Investors are for businesses, not nonprofits. The concept isn’t new, and the term “venture philanthropy” itself is credited to John D. Rockefeller III in 1969. But it’s taken on a fresh life recently, as successful executives and entrepreneurs apply a businesslike approach to their philanthropy. Thomas Vozzo is a great example. His long corporate career ended in 2011 as executive vice president of the $13.5 billion professional services company Aramark. Then he became the volunteer CEO of Homeboy Industries, a nonprofit that offers support to formerly incarcerated gang members…It owns and operates 14 small businesses, such as an electronics recycling business (Homeboy Electronics Recycling) and a bakery, where former gang members can work and develop professional skills. Most of Homeboy’s donors wanted to fund the services, but Vozzo was itching to actually grow these businesses and start new ones. His solution? To set up a venture philanthropy fund dedicated to doing just that. “For-profit America knows that they need to spend money to make money,” he figured. “Well, let’s use that same mentality in the nonprofit world.” The idea excited his corporate donors, and with $12 million so far, the fund helped Homeboy open a new dog-grooming enterprise, among others.” Read the full article here: https://lnkd.in/g3mR2rTt

I have so many questions 😬 😳 #InspireAccess #donoradvisedfunds #daf #dafs [I]t's a common misconception that charitable donations can't end up at for-profit entities. [D]onor-advised funds, or DAFs, can make charitable donations to Inspire Access (https://lnkd.in/e_YwwHtZ), which invests in the small businesses or startups via grants or, at a DAF administrator's discretion, as a recoverable grant investment into a business of its choosing. Should the small business or startup reach certain milestones, the recoverable grant can see a return on its original investment. #johnoliveresquedeepdive

"There is no single metric for a charity’s success comparable to profit in business." I couldn't agree more, and look at this in some detail in my forthcoming book. There's a thoughtful survey in The Economist this week on how philanthropy is changing, and how the efforts of MacKenzie Scott and other trail-blazing philanthropists are encouraging a move a way from an approach to philanthropy modelled on business practice to one that shifts greater power and trust to the nonprofits they fund. As the opening article in the survey explains: "Many former supporters have now accepted that making the world a better place differs greatly from the business of making money. In the market, self-interest focuses minds, competition means bad ideas do not thrive, and resources are naturally drawn where the pay-offs are largest. But, in philanthropy, donors rarely operate on the basis of rational judgment. People who see a problem up close have ideas about how it might be solved. They may have personal experience of it or personal attachment to the cause. They often work together, rather than in competition. And ngos do not operate in an efficient market. There is no single metric for a charity’s success comparable to profit in business. Charities rarely go under. “This is an environment that fundamentally differs from the market-based economy,” says Harvey Fineberg, president of the Gordon and Betty Moore Foundation, set up in 2000 by the co-founder of Intel and his wife. “It is based on partnership, rather than rivalry.” And another article in the survey makes the point "Plenty of money is being earmarked for do-goodery. But it is not getting to worthy causes fast enough." One solution it proposes is "Donors can team up and share the work" - ie they can joined pooled philanthropic funds, like The Freedom Fund Fund. Just one of the many excellent recommendations in the survey. The whole survey is well worth a read if you have access to the Economist. https://lnkd.in/ePQhC6yW

Caught up with my dear friend Patrice Brickman today, who is walking the walk dismantling the barriers to investment in companies led by people who don't look like Marc Zuckerberg or Elon Musk (that goodness for them). The article below describes the creative structure of her new organization, Inspire Access. Thank you for your leadership, PK! #leadership #equity #capitalraising PS For anyone tempted to yell, "reverse discrimination is still discrimination," the reality is that there is plenty of money available to "traditional" founders. In 2022, Black and Latino founders received only 1 percent and 1.5 percent respectively of total US venture capital (VC) funding. Women-founded teams received 1.9 percent of VC funds, and only 0.1 percent of VC funds went to Black and Latino women founders.

🚀 Exciting News from RedLadder! 🚀 We're thrilled to announce the launch of RedLadder, our groundbreaking platform that's set to revolutionize philanthropy. Inspired by the innovative spirit of the Red Paperclip Project, RedLadder offers a unique way to support charitable causes through a modern, digital trading system. Why RedLadder? Innovative: Merge the excitement of trading with the joy of giving. Impactful: Every transaction not only recycles good, usable items but also turns them into significant charitable contributions. Inclusive: Anyone can contribute and benefit, enhancing the charitable giving ecosystem without additional financial burden. We've been featured in the StarTribune this week in an article that beautifully captures our mission: "Buy Nothing meets GoFundMe: How a new Eden Prairie website aims to 'revolutionize' philanthropy." Check out the full story for a deep dive into how we're creating new opportunities for charitable growth. Join us in this exciting journey to elevate charitable giving, one trade at a time. Let's make a tangible impact together! 🌍💚 #RedLadder #Philanthropy #Innovation #SocialImpact #Charity #Sustainability #CommunitySupport

Before #bcorp, before #pbc, these are the questions many organizations must choose in doing their good work in their formation. "In today's world, that's a very prominent question. As we continue to spread the word about 121Giving, there is a heightened curiosity around the business model and how it works. With so many eyeballs and interest on social enterprises right now, we anticipate and welcome the dialog. I figured I would share it with everyone who is curious about the topic as it relates to the business and the conversations we're having. The conversation typically goes a little bit like this" https://lnkd.in/evxayc-D #socialenterprise #nonprofit #foundations #globalbusiness #philanthropy #socialimpact #impactinvesting #pbcs #csr

Economic fluctuations, along with the lasting impact of unforeseen events such as the COVID-19 pandemic, have created the need for innovative ways businesses can contribute to charitable causes. In our new blog, we explore alternate avenues for giving to charities, ensuring your efforts have both a meaningful and financially lasting impact! 👇🏼 https://bit.ly/47QIMvK #HASGR #GrandRapids #Accounting #Tax #Business

💫 "Leveraging technology in philanthropy should not simply make giving easier, but also elevate the ‘why’ of giving, enriching the donor experience and democratising the act of generosity." 💸 Read this great piece in The Fintech Times written by Robin Yan, CEO of Fanaverse, on how the charitable giving industry remains largely untouched by digital innovation, presenting a significant opportunity for the fintech industry to drive growth and inclusion. Read the full piece👇

There's $230 billion and counting in charitable capital parked in donor-advised funds (DAFs). With the Social Finance Impact First Fund, we're making it easy for DAF donors and sponsors to put this capital to work as impact-first investments. Check out the other innovations happening in the DAF ecosystem in Drew Lindsay's recent piece in the The Chronicle of Philanthropy: https://lnkd.in/efQd9sdr #donoradvisedfunds #impactfirst #catalyticcapital