| ABOUT US
Q. What is socialmarkets?
A. socialmarkets is a website that provides information about the effectiveness of non-profit organizations. We tell you how much ‘bang for the buck’ they offer their donors. We also allow you to help influence that 'bang' -- in real time -- by weighing in on which issues you think deserve the most attention, and have the greatest value.
Q. What is ‘social capital’?
A. ’Social capital is the benefit society receives when people invest money and other resources to advance social goals. A social goal might be saving the environment or improving literacy. Government and foundation funding, and your donations of time and money are all forms of social capital. All told, the US spends billions of dollars each year on charities and other social programs, but we rarely know if this money creates the social capital we expect. This is because very few organizations provide the metrics we need to determine whether the money is well-spent. socialmarkets encourages organizations to provide metrics, gathers the best metrics available, and compiles them in our customized ‘outcomes reports’.
Q. What is the ‘social capital marketplace’?
A. The social capital marketplace is similar to the regular financial marketplace where you use the best information available to invest in companies that you hope will offer a good return on your investment. The difference is that we deal with ‘social capital’ and tell you where you can expect a good ‘social return on investment’ in a non-profit cause.
Q. What is a ‘social return on investment’ or SROI?
A. The concept of ‘social return on investment’ or SROI is an economic tool that we’ve adapted for the web. SROI includes financial (e.g. dollars) and non-financial indicators (e.g. environmental impact) to determine how much social value an organization creates, relative to the money it spends. You can also think of it as a way of assigning a dollar value to a societal benefit. If you’d like to know more, see our ‘Impact Metrics’ section.
Q. How does SocialMarkets calculate a ‘Social Return on Investment’ or SROI?
A. To help you understand the impact of a non-profit, we use the outcomes they tells us they seek, and their level of success in producing these outcomes. For example, a homelessness support charity will state that ‘eviction prevention in New York City” is an outcome they pursue, and then provide us with data about their rates of success.
Q. How do I know that the metrics on socialmarkets.org are correct?
A. You don't. What you can know is that we are working with both non-profits and their supporters to make the metrics as 'correct' as they can be, and that we are completely open and transparent about what we know and what we don't. We require nonprofits to provide verified data about their project listings on socialmarkets.org, and source the data we take from public documents (for more on this topic see discussion.)
Q. How is socialmarkets different from sites like GuideStar and Charity Navigator that also evaluate non-profits?
A. Other websites do little more than offer reports based on the data that charities are legally required to provide the US government (IRS Form 990). This data tells you how much a charity spends but not what it does; it certainly doesn’t tell you anything how much impact it’s having. socialmarkets is different because we ask organizations to share both their measurable goals and how successful they’ve been in meeting them. This is the only way to determine if an organization is spending donor dollars wisely. In some cases you’ll see that more expenditure means more impact, while other cases seem tell a different story.
Q. Does socialmarkets focus on groups working in particular areas?
A. Yes, in the short term. We plan to cover the entire non-profit space, but that will take time. Meanwhile, we may focus on areas that are interesting because their outcomes metrics are particularly well-developed (like carbon trading) or particularly not (like poetry reading.)
Q. How do you select non-profits for your listings?
A. Sometimes we find the non-profit and sometimes they find us, but the consistent requirement is that they have clear outcomes and a way of measuring their success in pursuing them.
Q. What is the leaderboard?
A. Every socialmarkets user has their own private portfolio of social investments (i.e. donations) they make at the site. We maintain a site-wide ranking of portfolios earning the highest social returns (SROI) on a 'leaderboard'. |