We captured some great social impact headlines for this week’s roundup. This week we'll be covering why social enterprise is better than for-profit ventures, an impact investing twist for donor-advised funds, a new form of capitalism, and the hidden costs of social impact bonds.
Why a Social Enterprise is Much More than a For-Profit Venture
This article discusses the concept of social entrepreneurship as it continues to evolve and become mainstream, and how the aim of a social entrepreneur is beyond just profit.
National Philanthropic Trust Introduces Four Proprietary Impact Investment Options
What we learn from this article is that one of the biggest independent sponsors of donor-advised funds is now giving people an option to actually get a return on that money that’s invested.
Businesses Need to be Mindful of Social Impact Going Forward
This article discusses the notion that businesses need to be mindful of social and environmental impact moving forward.
We Need a New Capitalism
This article discusses how our current system has led to profound inequality and to fix it we need businesses and executives to value purpose alongside profit.
Nonprofit Quarterly: Hidden Cost of Social Impact Bonds
In this article we learn a little bit more about what some of the risks and hidden costs are of social impact bonds.
Welcome, welcome. You’re listening to The Science of Social Impact, a podcast from Crate of Good. We are on a mission to educate and inspire you to make social impact a key ingredient in your business and life. Thanks for joining. The time to make an impact is now.
This is your Social Impact Roundup for the week of October 28th bringing you some bigger headlines in the social impact world here on The Science of Social Impact. We’re starting today’s round up with an awesome article from entrepreneur.com. This was written by the cofounder and CFO of Ziqitza Healthcare, Manish Sacheti and he writes about why a social enterprise is much more than a for profit venture. While a social entrepreneur operates just as any entrepreneur would, the cause remains one of the key end goals. While the concept of social entrepreneurship continues to evolve and become mainstream, it’s also a good stage to clarify what it is not. The common misnomer is that social entrepreneurship is the same as starting a charitable foundation or starting a nonprofit governmental organization. This could not be further from the truth. The aim of a social entrepreneur is beyond just profit. It’s about bringing a large scale transformation of the society or community at large.
It is to bring change and solve problems faced by people and attracting talent and funding to solve these issues in a sustainable manner. We’ll link to that in the show notes. Why a social enterprise is much more than a for profit venture brought to you from entrepreneur.com. Second big headline, national philanthropic trust introduces four proprietary impact investment options for its donor-advised fund donors. That was a mouthful. This is brought to you from business wire. So the national philanthropic trust is one of the nation’s largest independent sponsors of donor-advised funds. And today they unveiled four new proprietary impact investing portfolios, which allow donors to achieve both social and financial returns on their donor-advised funds investments. So we will do a deep dive on donor-advised funds on the science of social impact. But the very quick, and trust me, this is a very simplified definition of it.
A donor advised fund is essentially a fund that a financial planning or wealth management company kind of holds. And there’s specific charities that benefit from donor-advised funds and folks who are having companies manage their money, are able to put money into this donor-advised fund. And then from that fund they can grant it out, donate it to charities. But they basically are getting that tax benefit today without knowing which charity they’re essentially going to donate to. And then when that charity comes along where there’s a need that presents itself, that capital deploys from that donor-advised fund. So what we’re learning here is that one of the biggest independent sponsors of donor-advised funds is now giving people an option to actually get a return on that money that’s invested. So I’ll be interested to see if what the tax write off implications of this are because if you’re impact investing that you cannot write that off.
And so we’ll, we’ll watch this one evolve here and see what it turns into. But the, the four different impact investing pillars from national philanthropic trust, are economic mobility, so seeking economic opportunity for all with a focus on underserved communities, environmental stewardship, managing climate change risks and protecting and conserving natural resources. The gender lens, supporting the advancement of women in the workplace and beyond and broad social impact. There’s that buzzword, social impact, advancing solutions to global challenges including conservation, financial inclusion and access to health care. National philanthropic thrust, introducing impact investment options. Second headline here comes again from entrepreneur.com, businesses need to be mindful of social impact going forward, says this venture capitalist. As consumption patterns change due to social and environmental dynamics, Lightbox’s Sandeep Murthy stresses the need to build solutions for complex problems. There’s a really interesting headline and article and again reiterating the notion that businesses need to be mindful of social and environmental impact moving forward.
Starting this article it says that either consumption patterns will change or the government will regulate certain industries in a way that will allow for the earth to be protected, Murthy says, setting the example of the water crisis in Shanai last year. According to Murthy, who started Lightbox five years ago, startups need to think about building models that solve social problems before investing in a startup. He begins with two questions. Is it a big space or is it a big product? It is also important that the problems that they solve are substantially differentiated. Really interesting article there. Again, thank you entrepreneur.com for bringing us a social impact headline. Fourth here we move to a very big publication. The New York times love to see social impact getting into New York times. This is an opinion article written by Marc Benioff. He’s the chairman and co-CEO of Salesforce. Salesforce has recently gotten into the social impact game.
They’re doing some really cool stuff with charities around the globe, so check them out. The title of this opinion article is we need a new capitalism. The current system has led to profound inequality and to fix it we need businesses and executives to value purpose alongside profit. Very interesting article there from Marc and the New York times. And lastly, we rounded out here with nonprofit quarterly, an article on the hidden costs of social impact bonds. This week we’re also rolling out a deep dive on social impact bonds. So if you don’t know what those are, you can pause here and go listen to that. But in this article, we’re learning a little bit more about what some of those risks and hidden costs are of social impact bonds. This has been your social impact Roundup for the week of October 28th thanks so much for listening. Now it’s time for you to go make an impact in your world and we’ll see you soon.
Thanks so much for being with us on this episode of The Science of Social Impact a podcast from Crate of Good. Go make an impact in your world and we’ll see you next time.