Online Giving Marketplace
Description
"Emerging “online giving marketplaces” like GlobalGiving , Kiva, DonorsChoose, and GiveIndia represent one of the most interesting intersections between philanthropy and social media that we’ve come across in our last two years of studying this space. These Web 2.0 start-ups are using online tools to connect donors to local issues, organizations, entrepreneurs, and social programs around the world."
Discussion
Gabriel Kasper:
"The markets are still small—they account for less than 1 percent of all giving in the U.S. (”not even the crumbs from the [philanthropic] pie,” according to Tom Williams of GiveMeaning). But as many people have observed, what matters with these startups is not the size, but the trend line. And with some of the larger sites like GlobalGiving and DonorsChoose growing at a rate of more than 100% a year, the trend is definitely on the rise.
Much of the conversation at the Stanford conference focused on two key elements: how the online giving markets are doing as markets—and how they are working online. On the latter point, Matt Halpern of the Omidyar Network drew on his past experience at eBay to lay out four key elements of successful online marketplaces: (1) driving users to the site; (2) making the platform easy to use; (3) ensuring trust; and (4) getting incentives right so that these other elements are reinforced.
What was emphasized less at the conference though, was the other word in the title of the program: online giving markets. Although they are still early in their development, these online giving markets represent a unique entry into the increasingly diverse philanthropic environment. They’re different from regular financial markets, and they’re more than just philanthropy online: they are allowing people to make connections, learn, and take action on issues in ways that were never before possible. They are an essential part of what Joel Fleishman, in his book The Foundation, calls the “American polyarchy”—a pluralistic society with many different independent power centers.
Fleishman says that he has “No doubt that it is this characteristic of our society—the proliferation of countless points of view on all issues, the proliferation of countless independent sources of initiative—that is the bedrock of our nation’s vitality, vibrancy, power, and enduring strength.” He sees foundations as instrumental in supporting the polyarchy, and American democracy.
In many ways, I think the online giving marketplaces are the next evolution of this: democratizing philanthropy by empowering more donors to express their views and support things they care about, while simultaneously allowing nonprofits and projects around the world to get the support they need. The new tools are opening up the field so that philanthropy is no longer just the province of the wealthy. It is becoming easier than ever before for people of all backgrounds and perspectives to give at whatever level they can afford." (http://workingwikily.net/?p=498)
More Information
- Video: The Story of a Kiva Loan