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Funds 101
In this document we describe how our funds are operating and managed. It intends to address all the questions that may arise before you’re making a commitment and serve a foundational source of all the information you need to know.

Why ?

Funds are highly structured philanthropic investment products that are built with a one goal - to increase impact and efficiency of Social ROI. It is achieved by implementing our unique, principle based, fractal organisational structure, that is showing better efficiency, resilience and scalability than a traditional, project based or grant-based donation approach. With novel governance structures, ingrained in the self-organisation paradigm, funds operate independently and self-sufficiently, while enjoying multiple abstract ground services, provided by our network of partners and organisations around the globe. Empowered by such capabilities, funds are no longer required to build the whole infrastructure from ground up, making it far more efficient and goal-focused tool in philanthropists hands.

How does it work ?

Each fund has its own cause and a goal. iPhilanthropists role is to provide a stream of high-quality initiatives that are matching the cause, offering a variety of ground services, like systems reports, financial accounting, service design, governance structures - all it needs for the fund’s members to be solely focused on approving and monitoring the initiatives, making only high-level decisions and course-correction. Our innovative tech platforms serve as an invaluable tool for the investors to track the progress and milestones of all initiatives, receiving full financial and ground reports, and enjoying a media library to communicate the impact to their stakeholders. In the background, we are constantly improving the experience and service structures, for the funds to become the most convenient and efficient way to make philanthropic investments.

Each fund has its own minimal threshold for participants to enter, with a goal to increase cohesion and cooperation between participants, not the quantity. Each investor receives impact-shares based on his investment proportion to the budget of the fund, that are communicated back in terms of actual impact.

Each investor chooses the level of engagement. You can decide your role from monitoring to actively engaging with operations or participate in our governance meetings.

Governance

We hold quarterly governance meetings for those who choose to engage in fund activities, although direct participation is optional.

Governance meetings are facilitated by our senior partners and are a highly efficient way of making high-level, high-quality decisions. Decision-making is based on an objection-based method that is shown to be efficient and fluent. Each meeting takes 45 minutes with a full agenda meticulously prepared and communicated in advance.

There are also operational meetings that are held on a more regular basis, that you can join at any time as an observer.

These meetings are at the crux of our management model, that proved its high efficiency, while minimising the amount of talk.

Impact shares

Impact shares is our unique and groundbreaking method of communicating back the value. It is based on data that we constantly and intentionally gather from all projects and data points, making it a single most valuable and concrete way of knowing that the money is spent right on purpose ,indeed making life better and achieving the fund's goals.

Data collection and processing is our fundamental approach in conducting philanthropic initiatives. It not only helps us to understand the dynamics and anticipate outcomes, but most importantly - to condense the impact - from saved lifes, improved well-being of society or environment, dissolving social problems to communicating created positive feedback loops (or continuous impact), that is at the core of our philanthropic endeavours.

Impact shares are the way the investor receives his part of the positive outcome that the fund has empowered to make, based on quantifiable and analytical data.

On entry, each investor receives impact shares based on his investment. Once a project is completed and released, we process the data and produce an impact report that reflects each investor's impact, that is shown in the control panel. This impact then can be communicated back to investors stakeholders or used in the ESG and other reports, increasing investors reputation and bottom line.

Balanced fund

Balanced structure is yet another innovation that investors are enjoying at our platform. It is built around our firm commitment to create an ongoing, systemic impact, rather than constant dump of donation without solving the actual problem or cause. That is our most important differentiator that we strongly protect, despite the initial appeal of the heroic “Disaster” or “Relief” type of efforts.

It is based on the method of balancing the impact and social investments, making the majority of investments in the projects that are sustainable and able to grow, making a long-term impact without constant support. While not all social projects can fully sustain themselves, we strategically invest into capabilities of such projects, to enable impact projects to be more efficient based on the groundwork of such social initiatives.

Our goal for the Balanced fund is to sustain its level of budget and in fact make money, enabling us to invest into new projects overtime without additional funds.

Ownership model

Another important factor is the ownership model. While impact-shares already provide a tangible reflection of philanthropic investments, the questions arise who owns the fund, who makes the decisions, and who owns the fund’s property.

Ownership Shares

Based on our structures, owning a virtual share of the fund means owning a part of a concrete entity, an organisation, that is making a constant social impact in the selected cause. Shares serve as tangible proof of your investment and all the related impact it made through the time. With a balanced fund structure, one fund could work almost indefinitely, raising additional funds if required based on the traditional investment model, creating constant impact value for its shareholders. Unlike the traditional shareholders structure, holders of the fund's shares do not vote with their shares and do not make money. It is not a financial instrument. However, we make all the efforts to protect the rights of our investors and increase the value of their philanthropic investments.

Property

With our thoroughly made agreements with all projects, all significant property that is bought and built using the fund's investments belongs to the fund. Real estates, land,leases, domain names, equipment - everything above a certain threshold and hold a concrete value, that the project has acquired are held by the fund, using our holding companies. This protects the fund investments and makes it a tangible holding value entity.

Decisions

Decisions are delegated to the process of governance and the constitution of the fund. Participants of the fund are senior-partners and partners engaged in the operations, major projects representatives, associates, funders and stakeholders in the cause. All of those who are participating in the governance meetings are making the decisions based on constitution and the process, making no space for self-interests or majority shareholders' sole decisions.

Constitution

The Constitution is a foundational document of the fund. It describes how all decisions are made, based on thoroughly described and highly structured objection-based method. Based on this method, all voices are heard and no decisions are made without all objections being addressed. What makes the objection based decision process so unique and effective, is that the objection and objector must communicate why the decision will be detrimental to the fund’s future and the cause and why it is not safe to try. These simple tools allow decisions made quickly and efficiently, with constant incremental improvements and review of the decisions made. With most of the decisions being made on the operational level, by the dedicated domain owners based on the self-accountability principle, governance meetings are left with only a few high-level decisions that take no more than 45 minutes or less.

Summary

We are making social investments a truly unique and satisfying experience. With many tools under the hood, well-designed governance structures, novel and efficient organisational models, solid ownership model funds are operating independently and efficiently, bringing ongoing positive outcomes and self-balancing its budget.

We’re open for your feedback and further questions. Contact us for more information and details or book a call.