Potential Benefits

If (when) an efficient market for non-profits assembles, then I would expect the following huge benefits:

1. Possibly eliminate hunger and other problems once and for all

Worldwide capital will flow dramatically more quickly and efficiently  to the most unfortunate and curable human problems (say starvation, disease with available vaccines) in a cause-weighted fashion, potentially eliminating them in the world once we can easily see that progress occurring in real-time.

 

2.  Real-time progress

Instead of spending a few moments in the morning checking whether your financial portfolio went up or down 1%, imagine watching world hunger literally being wiped off the map more each day.  That’s got to give you a good feeling.

With exchanges, brokerages, metrics and programming interfaces that connect the information, donors should be  able to get real-time feedback on the progress of projects hitting their fund raising and deployment milestones.

 

3. Efficiency, Eliminate waste from the system

Currently, money often flows to the non-profits that are superior at fundraising rather than superior at utilizing their capital.  That creates waste.  When capital is wasted in non-profit endeavors, it means that someone likely did not receive help.

 

4.  Improved transparency

Have you ever decided not to donate because you couldn’t tell how legitimate a cause was?  With features like rating agencies and prospectuses you could see transparently how companies intend to use donations resulting in a high degree of accountability.  Companies lacking transparency will be rated down hurting their chances of receiving future funding.   As a result, the most trustworthy and efficient non-profits will collect the most funding.

 

5.  Improved Public Awareness

Today, it is dead simple for anyone with an internet connection to find out the market capitalization or enterprise value of a for-profit public company (just visit yahoo finance, marketwatch etc.).  Even press releases are easy to find. But, how easy is it for the public to get a number reflecting the total cost of malaria vaccinations in a 3rd world country?  Not so easy.  If the public could see this critical information, it is likely to lead to even greater support.