A new index was introduced last week that is designed to measure results in donor gifts to non-profits.
The Social Impact Exchange rolled out the S&I 100 Index. The index tracks the number of people served across the portfolio of the top non-profits much in the same way the S&P 500 tracks the profitability of large-cap US companies.
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There are 100 high-impact non-profits and 16,000 local affiliates donors can choose from. The S&I 100 Index features models that address pressing issues in education, healthcare, youth, and poverty.
Until now, donors have had no real way to measure the effectiveness of their gifts in helping people in need. The new index holds the potential to transform individual philanthropy in similar fashion to the way the S&P 500 changed investing for individual investors.
The index screens the 100 non-profits included in the index by confirming evidence of impact through third-party verified studies.
When donors visit the site to examine the third-party studies, they can search for high-performing non-profits in the areas they care about the most.
Once investors make a selection, the index
allows them to give to the non-profit directly through only a few steps.
The exchange said it is also working with donor advised funds to offer the S&I 100 to their clients.