- Online giving marketplaces (OGMs) operate in the ecommerce space - these sites (eBay, Amazon, etc) have an average 3% conversion rate (percentage of site visitors that make a purchase). This conversion rate applies to OGMs - that means a lot of traffic needed.
- Kiva's web 2.0 principles (addictive user experience, radical transparency, crowdsource against constraints, increasing returns on data, reach the long tail)
- Today the global commercial capital markets (credit and debt availability) are beginning to look the way nonprofit capital markets have looked for years - very hard to access, in disarray, and almost impenetrable.
- OGMs in emerging economies are building cultures of giving; OGMs in established economies are trying to change those cultures
- Some OGMs see themselves as "exit strategies for large funders." Others hope to put themselves out of business because they will have helped everyone be a fundraiser
- OGMs: not just about the financial resources and whether or not pie is bigger or redistributed, they are trying to change donor and nonprofit expectations about information, transparency, and access.
- OGMs contribution to sustainable funding may lie in building sustainable networks of supporters - if they can build these, and not just lots of one-off gifts.
- Reputational capital is complicated for OGMs - reputations of users, NGOs, the sites themselves all interact
- Some OGMs are measuring engagement (numbers of users, numbers of "evangelists," repeat users) - not just dollars moved (though this matters to most)
- If KIVA is successful in becoming an alternative public credit bureau for global entreprenuers, isn't that systemic change? without direct advocacy?
- OGMs differ in their opinions (and architecture for) demand and supply. What is demand and what is supply, donors and NGOs/entrepreneurs?
- All of the OGMs represented are still desktop-bound (OK, wifi laptop bound.) None have incorporated mobile or text giving. (Somewhat ironic, as RTPS was demonstrated at the opening session and got lots of oohs and aahs).
- Donor choice
- 1:1 transactions between donor/lender and NGO/entrepreneur
- Feedback loops
- Donor choice
- Aggregating individual transactions (sometimes for intelligence)
- Two flows in the markets - financial resources and information
- Financial transactions are based on trusted information
- Better Place (Germany)
- Conexion Colombia (Colombia)
- DonorsChoose (U.S.)
- eBay Giving Works/Mission Fish (U.S.)
- GiveIndia (India)
- GiveMeaning (Canada)
- GlobalGiving (U.K. and U.S.)
- GreaterGood South Africa (South Africa)
- South Africa Social Investment Exchange (South Africa)
- HelpArgentina (Argentina)
- Kiva (U.S.)
- ModestNeeds (U.S.)
- Net4Kids (Netherlands)
- Rangde (India)
- Wokai (U.S)
I also learned that two of the five finalists in the American Express Members Project are OGMs represented at this conference. Here is a quiz: Match the description below (from the Amex MembersProject website) with the OGM from the conference:
A) "Help 100,000 children thrive in the classroom!: In urban and rural communities around the country, family income often determines a child's educational opportunities. This project can provide 100,000 children in low-income communities with books, art supplies, technology and other materials for a rigorous education."
B) "Loans That Change Lives: This project is an internet-based platform that allows everyday people to become 'social investors.' With $25, a credit card and an internet connection, anybody can invest in the life of a deserving entrepreneur. Lenders can sort pre-screened businesses by region, culture, or business category; and see a photo and profile of the person they are supporting."
A = DonorsChoose, B = Kiva