In a corporate setting, the goal of most firms is to maximize shareholder’s value; in other words, firms want to drive up the return on investment (ROI) as much as possible. In the world of social finance, ROI does not stop there. Social finance takes an additional step and adds value from the “social dividends” the company receives.
Crowdfunding has created a permanent shift in the financing landscape. Nonprofits, businesses, Entrepreneurs, and
potato salad enthusiasts individuals are using this new channel to tap into a mass of investors to fund their ideas. Crowdfunding should be especially appealing for nonprofits, as it allows hundreds or even thousands of supporters to vote with their wallets and bring worthwhile projects or causes to life.