Markets for Good is an initiative to discover how the social sector can better use and share information to improve outcomes and change lives.

1. UPGRADING
THE INFORMATION
INFRASTRUCTURE
FOR SOCIAL CHANGE
Spring 2013

2. Markets for Good is an initiative to
discover how the social sector can
better use and share information to
improve outcomes and change lives.
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3. Our vision is of a social sector
powered by information, where...
• Capital flows efficiently to the organizations
that are having the greatest impact
• Programs and interventions are more effective and responsive
• Beneficiaries have a voice
• There is a dynamic culture of continuous learning,
development, and innovation
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4. TODAY
THE SOCIAL SECTOR HAS
THE POTENTIAL FOR EVEN
GREATER IMPACT

5. THERE IS A SPECTRUM OF MARKETS,
CREATING A RANGE OF VALUES
The scope of this initiative
is the full social sector:
global in reach, consisting of
both nonprofit organizations &
socially-focused businesses
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6. EFFECTIVE PRIVATE MARKETS
CONTAIN FEEDBACK MECHANISMS
COMMERCIAL
INVESTORS BUSINESSES CUTOMERS
INVESTMENTS ACTIVITIES
PROFITS/ FEEDBACK/
EVIDENCE OF ROI OUTCOME
In an efficient private market, each transaction
provides feedback to investors and businesses,
which facilitates continued financial value creation.
EFFICIENT MARKETS ALLOW CAPITAL TO FLOW EASILY
TO THE MOST EFFECTIVE ENTERPRISES
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7. EFFECTIVE PRIVATE MARKETS SUPPORTED BY
A SYSTEM OF SHARED KNOWLEDGE
COMMERCIAL
INVESTORS BUSINESSES CUTOMERS
INVESTMENTS ACTIVITIES
PROFITS/ FEEDBACK/ EVIDENCE
EVIDENCE OF ROI OUTCOME
OF IMPACT
INFORMATION INSIGHT INFORMATION INSIGHT INFORMATION INSIGHT
STRUCTURED & CONNECTED
INFORMATION & KNOWLEDGE
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8. LIMITED/BROKEN FEEDBACK LOOPS IN THE SOCIAL SECTOR
NONPROFITS &
FUNDERS TIME, MONEY,
SOCIAL BUSINESSES BENEFICIARIES
EXPERIENCE INTERVENTION
S
LIMITED EVIDENCE LIMITED
OF SOCIAL RETURN FEEDBACK
Capital flows are Impact of interventions
inefficient & costly is often unclear
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9. SOCIAL SECTOR HAS LIMITED, UNSTRUCTURED,
& UNUSED INFORMATION
NONPROFITS &
FUNDERS TIME, MONEY,
SOCIAL BUSINESSES BENEFICIARIES
EXPERIENCE INTERVENTION
S
LIMITED EVIDENCE LIMITED
OF SOCIAL RETURN FEEDBACK LIMITED
KNOWLEDGE
& CERTAINTY
LIMITED SUPPLY LIMITED DEMAND
OF INFORMATION FOR INFORMATION OF IMPACT
UNSTRUCTURED
INFORMATION & KNOWLEDGE
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10. The needs of the stakeholders
are not being met.
• Funders do not have enough information
to make informed investments
• Nonprofits and Social Businesses do not have enough
information and feedback on their interventions to learn,
adapt, and scale
• Beneficiaries do not have a voice
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11. FUNDERS DO NOT HAVE ENOUGH INFORMATION
TO MAKE INFORMED INVESTMENTS
Funders struggle to find the They do not know if
organizations to support their dollars are making
a strong impact
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12. NONPROFITS & SOCIAL BUSINESSES DO NOT HAVE ENOUGH
INFORMATION AND FEEDBACK TO LEARN, ADAPT, AND SCALE
Nonprofits and social They do not have a
businesses end up spending standard way of reporting
too much time searching for progress to all of their funders
the information and money
they need to do good work
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13. BENEFICIARIES DO NOT HAVE A VOICE
People have knowledge of
solutions for their communities,
but it often goes untapped when
feedback isn’t heard
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14. TOMORROW
A SOCIAL SECTOR
POWERED BY
INFORMATION

15. Our vision is of a social sector
powered by information, where...
• Capital flows efficiently to the organizations
that are having the greatest impact
• Programs and interventions are more effective and responsive
• Beneficiaries have a voice
• There is a dynamic culture of continuous learning,
development, and innovation
15

16. EFFICIENT GIVING WITH GREATER IMPACT
NONPROFITS &
FUNDERS TIME, MONEY,
SOCIAL BUSINESSES BENEFICIARIES
EXPERIENCE INTERVENTION
S
EVIDENCE OF FEEDBACK
SOCIAL RETURN
Capital flows more Interventions are more
effectively & easily effective & innovative
• More money to the • Improved programs &
organizations with services
the greatest results
• New and expanded
• Less expensive to programs & services
move money
• Brand new innovations
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17. CENTERED ON A SYSTEM OF SHARED KNOWLEDGE
NONPROFITS &
FUNDERS TIME, MONEY,
SOCIAL BUSINESSES BENEFICIARIES
EXPERIENCE INTERVENTION
S
EVIDENCE OF FEEDBACK GREATER IMPACT
SOCIAL RETURN
& EVIDENCE OF
THAT IMPACT
INFORMATION INSIGHT INFORMATION INSIGHT INFORMATION INSIGHT
STRUCTURED & CONNECTED
INFORMATION & KNOWLEDGE
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18. In this system stakeholders have
easy access to the information they
need to make important decisions.
• Funders make informed capital allocation decisions
(investments, grants, and donations)
• Nonprofits and Social Businesses have information and
feedback so they can learn, adapt, and scale
• Beneficiaries have a voice
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19. FUNDERS MAKE INFORMED
INVESTMENTS, GRANTS, DONATIONS
TRACK PROVIDE capital &
performance of my EXCHANGE knowledge with
social investments organizations
SEARCH & DISCOVER
COMPARE & EVALUATE
social challenges
organizations
& organizations
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20. NONPROFITS & SOCIAL BUSINESSES HAVE INFORMATION AND
FEEDBACK SO THEY CAN LEARN, ADAPT, AND SCALE
ENGAGE beneficiaries
REPORT results of in intervention design &
my interventions & strategies, EXCHANGE
TRACK operations knowledge with funders,
and RAISE money
LEARN
SEARCH & DISCOVER
about intervention strategies
social challenges
that work & how to improve
& funders
performance
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21. BENEFICIARIES HAVE A VOICE
SHARE
my feedback
COMPARE & EVALUATE SEARCH & DISCOVER
available resources in my available resources
community in my community
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22. OTHER STAKEHOLDER BEFEFITS
ENGAGE
Reliably TRACK people in more effective
data across sectors approaches to the social
sector
ANALYZE trends & SEARCH
the most successful
EVALUATE effectiveness intervention strategies
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23. We don’t believe that we need a
single platform, database, or
application for the whole social sector,
but we do need to link together the
isolated and fragmented data and
information “islands” that exist today.
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24. TOMORROW
INFRASTRUCTURE FOR
THE SOCIAL SECTOR

25. A SOCIAL SECTOR POWERED BY INFORMATION
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26. BUILDING A BETTER TOMORROW REQUIRES
STRUCTURING THE FRAGMENTED TODAY
YESTERDAY TOMORROW
Limited, unconnected, Comprehensive, comparable,
& dated information & timely information
INFORMATION
INFRASTRUCTURE
• Classifications
• Technical Standards
• Reporting protocols
• Knowledge platforms
• Governance
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27. STRENGHTENING THE SECTOR’S
INFORMATION INFRASTRUCTURE IN FIVE KEY AREAS:
Taxonomies for data that provide a • NTEE codes for nonprofits
Classifications
“common language” across organizations • IRIS metrics for social businesses
• GeoTree for geographic coding
Specifications for electronic data interchange • hGrant for machine readable foundation
Technical Standards grant reporting
that allow easy and accurate access to information
by multiple parties
Standards for data reporting that ensure data • IRS 990 requirements
Reporting Protocols
is reported accurately, consistently, and promptly • The Foundation Center’s Reporting
Commitment for foundation grants
Platforms that allow social sector data to be captured • GuideStar for nonprofit data
Knowledge Platforms
• GreatNonprofits for stakeholder reviews
• ImpactBase for impact inv’s
Oversight to maintain the system, ensure intellectual • US Government for policies,
Governance: legal standing, tax issues
property rights and privacy concerns are managed,
Oversight, Rights build consensus, and drive compliance • GIIN for impact investing
& Protection • IATI to maintain standards
and increase transparency
for international aid
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28. CATEGORIES OF SOCIAL SECTOR INFORMATION
SOCIAL ISSUES INTERVENTIONS ORGANIZATIONS RESOURCES
(WHAT IS NEEDED) (WHAT WORKS) (WHICH ARE (CAPITAL FLOW
BEST EQUIPPED DETAILS)
FOR IMPACT)
Baseline social indicator The goals, strategies, The goals, strategies, Details of the grants,
data and information on and programs for activities, operations, donations, investments,
the breadth, depth, addressing social and finances of volunteer time, and
addressability, and issues, and data, organizations, their other human capital that
drivers of issues, research and feedback effectiveness, and support interventions
including beneficiary on their outcomes and their impact and organizations
needs “what works”
e.g., Nurse-Family e.g., The Robert Wood
e.g., 50% of children from at- e.g., regular nurse visitation Partnership is currently Johnson Foundation made a
risk backgrounds are below for new mothers and their serving 22,795 babies and 5-year, $10 million grant to
the basic level for reading babies leads to a 0.2 point their mothers in 40 states Nurse-Family Partnership in
and math skills increase in math & reading across the U.S. 2007
GPA in grades 1-6
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29. BETTER KNOWLEDGE = GREATER IMPACT
BETTER SOCIAL WILL HELP FOR BETTER LEADING TO
SECTOR KNOWLEDGE UNCOVER INSIGHT... DECISION MAKING... GREATER IMPACT
Stronger information Insight... Cross-referenced and
infrastructure will make data connected information will
more useful, accessible and allow stakeholders to make
easy to provide better decisions about
budgets, strategies, services,
policies, and more
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30. BUILDING AN INFORMATION INFRASTRUCTURE
WILL ENABLE DATA TO BECOME INSIGHT
+
Data
Information Infrastructure Organizes Raw Data Into Useful Information
Information
Information Platforms Synthesize Knowledge
Knowledge
Knowledge Platforms Uncover Insight
Insight
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31. THE WAY FORWARD

32. NEXT STEPS
Engage & Learn
Bring together ideas about how to create, use, and share information in the social sector.
Establish & Communicate a Vision
We’ve published a White Paper containing our preliminary vision that will evolve
and change as we move forward with the initiative.
Map the Landscape
Create a common understanding of what is being done today,
and where there are opportunities for further collaboration of innovation.
Define an Investment Strategy & Approach
Evaluate the importance, priority, feasibility, and cost for upgrading
the social sector’s information infrastructure.
Support Key Initiatives
Strengthen the information infrastructure by funding
shovel-ready projects and future pilot projects.
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33. JOIN THE CONVERSATION
marketsforgood.com
@MarketsforGood
#mkts4good
facebook.com/MarketsforGood
Markets for Good
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34. THE SUPPORTERS

35. THE SUPPORTERS
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36. LET’S BUILD A BETTER
TOMORROW. TOGETHER.