New Frontiers of Philanthropy : A Guide to the New Tools and New Actors That Are Reshaping Global Philanthropy and Social Investing

The resources of both governments and traditional philanthropy are either barely growing or in decline, yet the problems of poverty, ill-health, and environmental degradation balloon daily. It is therefore increasingly clear that we urgently need new models for financing and promoting social and environmental objectives. Fortunately, a significant revolution appears to be underway on the frontiers of philanthropy and social investing, tapping not only philanthropy, but also private investment capital, and providing at least a partial response to this dilemma. This book examines the new actors and new tools that form the heart of this revolution, and shows how they are reshaping the way we go about supporting solutions to social and environmental problems throughout the world. With contributions from leading experts in the field, __New Frontiers of Philanthropy__ provides a comprehensive analysis of the many new institutions that have surfaced on this new frontier of philanthropy and social investment; the new tools and instruments these institutions are bringing to bear; the challenges that these actors and tools still encounter; and the steps that are needed to maximize their impact. The result is a powerful and accessible guide to developments that are already bringing significant new resources into efforts to solve the world's problems of poverty, ill-health, and environmental degradation; unleashing new energies and new sources of ingenuity for social and environmental problem-solving; and generating new hope in an otherwise dismal scenario of lagging resources and resolve. Investors, philanthropists, social entrepreneurs, nonprofit leaders, business executives, government officials, and students the world over will find much to build on in these pages. The Resources Of Both Governments And Traditional Philanthropy Are Either Barely Growing Or In Decline, Yet The Problems Of Poverty, Ill-health, And Environmental Degradation Balloon Daily. It Is Therefore Increasingly Clear That We Urgently Need New Models For Financing And Promoting Social And Environmental Objectives. Fortunately, A Significant Revolution Appears To Be Underway On The Frontiers Of Philanthropy And Social Investing, Tapping Not Only Philanthropy, But Also Private Investment Capital, And Providing At Least A Partial Response To This Dilemma. This Book Examines The New Actors And New Tools That Form The Heart Of This Revolution, And Shows How They Are Reshaping The Way We Go About Supporting Solutions To Social And Environmental Problems Throughout The World. With Contributions From Leading Experts In The Field, New Frontiers Of Philanthropy Provides A Comprehensive Analysis Of The Many New Institutions That Have Surfaced On This New Frontier Of Philanthropy And Social Investment; The New Tools And Instruments These Institutions Are Bringing To Bear; The Challenges That These Actors And Tools Still Encounter; And The Steps That Are Needed To Maximize Their Impact. The Result Is A Powerful And Accessible Guide To Developments That Are Already Bringing Significant New Resources Into Efforts To Solve The World's Problems Of Poverty, Ill-health, And Environmental Degradation; Unleashing New Energies And New Sources Of Ingenuity For Social And Environmental Problem-solving; And Generating New Hope In An Otherwise Dismal Scenario Of Lagging Resources And Resolve. Investors, Philanthropists, Social Entrepreneurs, Nonprofit Leaders, Business Executives, Government Officials, And Students The World Over Will Find Much To Build On In These Pages. --provided By Publisher. The Revolution On The Frontiers Of Philanthropy : An Introduction / Lester M. Salamon -- Capital Aggregators / Lisa Richter -- Secondary Markets / David J. Erickson -- Social And Environmental Exchanges / Durreen Shahnaz, Robert Kraybill, And Lester M. Salamon -- Foundations As Philanthropic Banks / Lester M. Salamon And William Burckart -- Enterprise Brokers / Lisa Hagerman And David Wood -- Capacity Builders / Melinda T. Tuan -- Online Portals And Exchanges / Vince Stehle -- Corporate-originated Charitable Funds / Rick Cohen -- Funding Collaboratives / Angela M. Eikenberry And Jessica Bearman -- Overview : The New Tools Of Philanthropy / Luther M. Ragin, Jr. -- Loans, Loan Guarantees, And Other Credit Enhancements / Norah Mcveigh And Julia Sass Rubin -- Fixed-income Securities / Elise Balboni And Shari Berenbach -- Securitization / Mary Tingerthal -- Private Equity Investments / Monica Brand And John Kohler -- Social-impact Bonds / Pay-for-success Financing / Drew Von Glahn And Caroline Whistler -- Insurance / Craig Churchill And Lauren Peterson -- Socially Responsible Investing And Purchasing / Steve Lydenberg And Katie Grace -- New Forms Of Grantmaking : Competitions, Prizes, And Crowd Sourcing / Peter Frumkin -- Who Gains, Who Loses? Distributional Impacts Of The New Philanthropy / Michael Edwards, Matthew Bishop And Michael Green -- The Demand Side Of The Social Investment Marketplace / Alex Nicholls And Rod Schwartz -- The Elusive Quest For Impact : The Evolving Practice Of Social-impact Measurement / Brian Trelstad -- The New Frontiers Of Philanthropy In Global Perspective / Maximilian Martin -- A Policy Agenda For The New Frontiers Of Philanthropy / Shirley Sagawa. Lester M. Salamon, Editor. Includes Bibliographical References And Index. Cover 1 New Frontiers of Philanthropy 2 Copyright 5 Contents 8 List of Figures 12 List of Tables 14 List of Boxes 16 Foreword 18 Preface 22 Acknowledgments 26 Directory of Participants 28 Part I Introduction 38 Chapter 1 The Revolution on the Frontiers of Philanthropy: An Introduction 40 Part II New Actors 126 Chapter 2 Capital Aggregators 128 Chapter 3 Secondary Markets 158 Chapter 4 Social and Environmental Exchanges 181 Chapter 5 Foundations as “Philanthropic Banks” 202 Chapter 6 Enterprise Brokers 246 Chapter 7 Capacity Builders 258 Chapter 8 Online Portals and Exchanges 277 Chapter 9 Corporate-Originated Charitable Funds 292 Chapter 10 Funding Collaboratives 328 Part III New Tools 346 Chapter 11 Overview: The New Tools of “Philanthropy” 348 Chapter 12 Loans, Loan Guarantees, and Other Credit Enhancements* 351 Chapter 13 Fixed-Income Securities 378 Chapter 14 Securitization 403 Chapter 15 Private Equity Investments 432 Chapter 16 Social-Impact Bonds/Pay-for-Success Financing 461 Chapter 17 Insurance 494 Chapter 18 Socially Responsible Investing and Purchasing 532 Chapter 19 New Forms of Grantmaking: Competitions, Prizes, and Crowd Sourcing 551 Part IV Crosscutting Issues 574 Chapter 20 Who Gains, Who Loses? 576 Chapter 21 The Demand Side of the Social Investment Marketplace 599 Chapter 22 The Elusive Quest for Impact: The Evolving Practice of Social-Impact Measurement 620 Chapter 23 The New Frontiers of Philanthropy in Global Perspective 641 Chapter 24 A Policy Agenda for the New Frontiers of Philanthropy 673 Appendix New Frontiers of Philanthropy Project Advisory Committee 692 Glossary 694 Bibliography 700 Index 740 This volume presents the first comprehensive and authoritative account of the new actors and tools revolutionizing global philanthropy and social investment at the present time. At a time of declining government resources and limited charitable capability, this development represents one of the most hopeful signs for gaining meaningful traction on the globe's escalating problems of poverty.