IPO for charity?

The Chronicle of Philanthropy reports on an article in the Ottawa Citizen that the Canadian Women’s Foundation has launched an “IPO” (”Immediate Public Opportunity”) for the Girls’ Growth Fund.  This is a creative way to raise $1m through offering donors “shares” for $100 each.  Investors get a share certificate, prospectus, and the satisfaction of having helped girls.  Sherry Cooper and Doris Buffett were “angel investors” who bought in at $10k before the launch, while other high-profile Canadians such as Heather Reisman and Margaret Atwood purchased at least one share before the launch went public.

The website announcement is cute and tongue-in-cheek: “Don’t just watch this stock.  Buy it!”, a graph shows the rate of the fund’s growth and they’ve been successful at raising $193k to date.

Tactical Philanthropy blogger Sean Stannard-Stockton comments on the methodology here, while commenters to his post lament the use of gimmicks such as this.

I’m not bent out of shape by this kind of fundraising – it’s just another approach to attract attention, passion and interest in a good cause.  I give Canadian Women’s Foundation kudos for coming up with a creative strategy, generating media attention, getting us talking about it.

The Citizen’s article sums up my thoughts:

The non-profit IPO is a bit of a gimmick. But it is one that plays into a growing mindset among donors, who see their contributions as more of an investment than a gift.

“Donors are caring more and more about what’s been done with their money. They see it as a social investment,” said Maggie Leithead, president of Charity Village, a resource website for Canadian charities.

“They saying ‘As a shareholder, I expect to be apprised of what you’re doing with my money.’”