entities 
entities
Non Profit “IPO”
The first nonprofit “IPO,” created to resemble the initial public offerings public companies use to raise money, has brought in $700,000 for an affordable-housing center. From Value Network.
Launched a year ago with help from billionaire-investor Warren Buffett, the effort sells “fundraising” shares, priced at $32 each, with proceeds going to Homeward Bound of Marin.
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June 11th, 2008 um 8:10 am
And this differs from a clever fundraising gimmick how? And this has something to do with actual capital markets how? Will people who bought these “shares” earn dividends or other forms of income? Or is this just old wine in new flasks, demonstrating once again that the only way to provide charity (e.g. affordable housing) is to make contributions?
June 11th, 2008 um 5:56 pm
that’s a good question.. it is clearly a donation. the i means immediate opportunity. but it does break down the cost of building 32 homes and it got there fast through using some new language. that’s really what i was calling attention to. i hate the word invest when people mean donate.. but this was a new spin. no endorsement, just a mention.
here is some of the background.
https://www.ipohomeward.com/whatisanonprofitipo.html
and forbes did a little bit more on it.
http://www.forbes.com/prnewswire/feeds/prnewswire/2008/05/19/prnewswire200805190930PRNEWSUSPR_AQM108.html
June 12th, 2008 um 6:51 am
just adding to the dialogue on this posting.. I spoke with Paul Fordham of Homeward Bound last month and wrote about their “IPO” on our xchange blog (http://xchangexchange.com/blog1/2008/05/05/nonprofit-ipo-what-does-it-mean/). It is definitely a donation - and not an investment (with ownership, dividends, etc..). While clearly some of this is indeed a twist on ‘marketing’ a FR campaign - HB does have some good specifics (as Kevin mentions) on costs and benefits… In talking to Paul, I thought that in some ways this idea of ‘owning a share’ can be an interesting tool to get donors to think about an ‘exchange of value’…