A Nasdaq for Nonprofits?

In a New York Times DealBook column, Andrew Ross Sorkin explores an interesting idea put forward by Lindsay Beck: is there a way to harness financial instruments to dramatically increasing funding resources for nonprofits.  Ms. Beck, who has a Wharton M.B.A. and founded a successful charity that aided female cancer survivors with pregnancy, has pursued the idea with a number of investment banks.  Based on the article, much work still has to be done to make it a reality and it is far from clear that the idea will prove to be a viable and successful one, but it and the other innovative financing ideas discussed in the column raise a host of intersting issues.  For example, what bodies of laws govern such instructions – federal and state securities laws, state charitable soliciation laws, both?  What remedies would aggrieved “investors” have?  What monitoring would be required or advisable?  Nevertheless, it is an interesting idea.

Lloyd Mayer