The Idea

The purpose of this site is to explore the notion that there is already enough spare capital in the world today to solve most of the serious problems facing our fellow humans (things like starvation, curable diseases).   IF it was only directed at these problems more efficiently.

What would that look like?

I can imagine in the future, we will contribute to market weighted causes the same way we contribute to market weighted portfolios in our retirement accounts today

portfolio1

Every month, as money is deducted from my bank account and flows into retirement savings, money will also flow to the global causes I find most critical.  Or, if I choose my donations can be allocated to a global cause weighted index portfolio.  With an indexed portfolio my money will just flow proportionately to the causes the world finds most critical and solvable.

Why is this important?

If you spend some time researching investments, one thing you will probably learn is that our for-profit capital markets are considered very efficient.  Whenever an inefficiency exists, it is quickly arbitraged away by market participants and their computers.  That is why it is considered very hard for investment managers to “beat the market” even by 1% continually.   Belief in efficient markets is why most advisors recommend investors simply use passive index funds.

In contrast, our non-profit capital distribution seems much less efficient and potentially wasteful.  Wasting capital in non-profit endeavors means more than just lost opportunity. Instead it could mean the difference between someone being fed or vaccinated. It could mean life or death.

The model of our for-profit markets has evolved over centuries.  If there is a chance that some of its efficiencies can be mapped to our non-profits it’s worth looking into.  There is no sense in reinventing the wheel.  I find it a little hard to believe that it is not much easier (in this information age)  for individuals to research or contribute to a portfolio of causes each month the way we do mutual funds.  I believe unleashing the power of efficient markets on our non-profit efforts has the potential to eliminate some of the worlds must unnecessary problems and misallocation of resources.