Navigating the New Social Economy

Lucy Bernholz

www.lucybernholz.com http://www.philanthropy2173.com @p2173

Copyright 2011 Lucy Bernholz. All rights reserved.

What is the social economy?

Organizations and nancial structures that deploy private resources for shared social benets.

The sector formerly known as philanthropic, independent or nonprot.

New enterprises, new capital

Copyright 2011 Lucy Bernholz. All rights reserved.

Donors Choices
2011 Impact Investing Sidecar Funds Giving Circles Online Giving Embedded Giving 1991 1990 Charitable Gift Fund Private Foundation Community Foundation Bequests Direct Giving
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Copyright 2011 Lucy Bernholz. All rights reserved.

The Donors Product Portfolio

Private Foundation Giving Circle Embedded Giving

Political Giving
Direct Giving Sidecar funds

Corporate Giving Board

Impact Investing

Community Foundation

Volunteer Time Online Giving Donor Advised Fund

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Bequests

Copyright 2011 Lucy Bernholz. All rights reserved.

Overall Giving 1967-2007 Source: Giving USA 2008

Product innovation occurred  during time of great growth in giving

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Copyright 2011 Lucy Bernholz. All rights reserved.

Social economy
Corporate Social Roles

Social businesses L3C

Nonprots
Informal networks Not invented yet

Choices for Doing Good

Copyright 2011 Lucy Bernholz. All rights reserved.

The Landscape, 2011

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Social for prot

Businesses
B Corporations Social Enterprises For benet corporations L3Cs

Businesses

Funders

Social for-prot

The

Social Landscape
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Nonprot

emerging intersections

o 2 1 1
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Philanthropy

Funders
Social investors Endowment PRIs Social stock exchanges (to come)

Nonprot
Organizations
Nonprots Nonprot social entreprises

Organizations

Philanthropy
Individual donors Foundations Donor advised funds Giving circles

Copyright 2011 Lucy Bernholz. All rights reserved.

Impact Investing
Actively placing capital in enterprises and funds that generate social and/ or environmental good and at least return nominal principal to the investor.

Copyright 2011 Lucy Bernholz. All rights reserved.

Impact Investing = New Capital for Good

Annual giving by American individuals ~ $220 billion per year Impact Investing Now Somewhere between $25.7 billion (CDI) and $7 trillion (SRI) Market estimates for Impact Investing + $100 billion per year, $1 trillion by 2020

Copyright 2011 Lucy Bernholz. All rights reserved.

Building Supports for the Long Tail

as of July 2011
GIIN ImpactBase

Size

Impact Assets Social Impact Bond Guarantees Toniic Impact 50 II Exchanges

Number
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Copyright 2011 Lucy Bernholz. All rights reserved.

Political Giving
From philanthropic perspective Funding advocacy Education and awareness From political perspective Contribute to candidate Contribute to national committee Contribute to local, regional, state PAC Contribute to 501 c 3 Contribute to 501 c 4 Corporate contributions Considerations for donors Disclosure/Anonymity FEC limitations Gift tax exclusions Charitable deductibility

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Copyright 2011 Lucy Bernholz. All rights reserved.

Funders in the Social Economy

Donor

Impact Investor

Social returns Social Purpose

Networks for Good

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Copyright 2011 Lucy Bernholz. All rights reserved.

Why it matters

New organizational forms bring new talent and new strategies (new forms for good) New capital follows/sparks growth (new money for good) Transparency, accountability, oversight differ across forms (new rules for good)

Copyright 2011 Lucy Bernholz. All rights reserved.

More info: lucy@lucybernholz.com @p2173 All publications: www.lucybernholz.com http://www.philanthropy2173.com

Copyright 2011 Lucy Bernholz. All rights reserved.