Social Stock Exchange can help improve funding access to social organizations
One of the big challenges for social organizations to raise funds from the mainstream population is overcoming the trust barrier— potential donors have a hard time trusting that their investment will be put to good use.
In the case of listed companies on stock exchanges, we have regulators & comprehensive disclosure norms that have built trust over time. If we had something similar for social organizations – a social stock exchange (SSE), could it help them raise funds easily and not just rely on Corporate social responsibility (CSR)?
We recently had an ask me anything session with Hemant Gupta, head of the BSE SSE, to discuss this. BSE and NSE SSE’s will be operational in the coming months. Soon, you will be able to donate to a cause that you identify with, just like investing in a stock from Kite.
Through Zerodha and Rainmatter Foundation, we will:
- Help the first 5 organizations with the minimum fundraising.
- Evangelize the idea of SSE by nudging investors to have a small allocation in their portfolios toward social investments. Because that’s what it is—not giving, but a social investment.
Here is the link to the conversation.