Ethos Commons Fund

= EthosVO common-good oriented funding

URL = https://www.ethosvo.org/building-a-sustainable-world/

Discussion

Robert Pye:

"We are in the process of establishing a ‘common good’ fund. This fund will be a testament to participatory governance, where those directly involved, alongside experts in people-led value initiatives, oversee the platform. This model ensures that the communities benefiting from the fund have a decisive voice in resource allocation. The fund’s impact would be measured not in economic terms but in the transformative stories of those whose lives are enriched through a proven “Value Exchange” process.

By channelling resources to the right people and projects, we can catalyse meaningful change. This approach doesn’t just offer a solution; it offers a vision of a future where value is defined not by wealth or power, but by the positive impact we have on each other and our planet. So, what exactly is Value Exchange? It is the cornerstone of this new era – a concept that redefines value in terms of social and environmental impact, rather than traditional economic metrics. It’s an idea whose time has come, and one that holds the key to unlocking a future that works for everyone.

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Value Exchange represents a paradigm shift, redefining how we perceive and assign value in our society. It transcends traditional economic metrics, spotlighting the rich tapestry of human experience and interaction that often goes unnoticed in our commodified world.

At the heart of Value Exchange lies the recognition of the intrinsic worth of stories, relationships, and communal bonds. These aspects of human life, though intangible and often unquantifiable in monetary terms, are fundamental to our wellbeing and societal health. This approach is crucial in realms where social value is paramount, as it acknowledges the profound impacts that extend beyond financial metrics. In social ventures, for instance, success is measured in the positive transformations within communities and ecosystems, reflecting a holistic view of progress.

Value Exchange challenges us to redefine our understanding of value, urging us to consider the depth and significance of our interactions and contributions. This reorientation enriches our experiences and fosters a more equitable and empathetic society.

Consider the example of parental care. Traditional economic systems do not recognize the value of a parent caring for their child, yet if this care is outsourced, it contributes to the GDP. This discrepancy raises critical questions about our current measures of societal and planetary wellbeing. Value Exchange seeks to bridge this gap, using methodologies from sociology, anthropology, and ethnography to capture and articulate the value inherent in personal narratives and community engagement.

“Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. And it can tell us everything about America except why we are proud that we are Americans.” – Robert F. Kennedy, 1968

As we embrace Value Exchange, we start viewing individuals, communities, and projects as catalysts for passion and transformation. This perspective differentiates meaningful work from mere labour – the latter being a simple exchange of time for money. In a world increasingly influenced by AI, we see the displacement of traditional jobs not as a threat but as an opportunity to redefine work as a meaningful and fulfilling endeavour.

Empowering individuals to pursue their passions through Value Exchange is essential. It involves providing access to resources. In experimenting, we see the emergence of many new ”means of production” including blockchains, open source and maker labs. We do not (yet) know “what comes next” in terms of sustainable work but those who are exploring need financial support and access to capital.

A foundational step in this journey is the implementation of a basic income for participants in this new system.

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The concept of a Commons Fund, as envisioned by EthosVO, represents a transformative approach to resource allocation and project support. This fund is characterised by several distinctive features, each designed to foster a more inclusive, equitable, and effective distribution of resources."

(https://www.ethosvo.org/building-a-sustainable-world/)

Characteristics

Key Features of the Commons Fund:

Robert Pye:

• Unrestricted Scope: The fund operates without geographical, demographic, or beneficiary restrictions, embracing a diverse range of participants committed to enhancing the wellbeing of people and the planet.

• Well-Defined Commitments: Participants agree to specific outcomes related to people and planet wellbeing, along with clear start and end dates for their projects.

• Living Wage Participation: All project participants are offered a living wage, ensuring that involvement in these projects is both sustainable and equitable.

• Value Exchange Prioritisation: Participants complete a Value Exchange process before applying, ensuring alignment with the fund’s core principles.

• Social Value Reporting: Projects, rather than the funding source, are responsible for reporting social value to stakeholders, emphasising accountability and transparency.

• Efficient Fund Management: Both fundraising and fund management operate on a 100% variable cost basis, maximising efficiency and resource allocation.

• Participatory Governance: Projects are funded and governed through participatory mechanisms, allowing for broader and more democratic involvement in decision-making.

• Minimal Governance Oversight: Fund managers provide only essential oversight, reducing bureaucracy and empowering project teams.

• Independent Project Funding: There is no direct funding of projects by funders, ensuring impartiality and fairness in the allocation process.

• Continuous Funding Mechanism: Projects are continually funded based on a ‘Project Pipeline’ system, similar to models used in open-source platforms like GitHub, moving away from competition-based or periodic funding meetings.

This approach challenges the traditional grant-making process, often dominated by competition, which can be both destructive and regressive. Rather than engaging in a zero-sum game where organisations expend significant efforts on unlikely grant submissions, the Commons Fund utilises proven methods from open-source participatory models. This approach ensures a more equitable distribution of resources, focusing on projects with a clear mission for the common good and a consensus among stakeholders.

The Commons Fund envisions a system where the majority of resources – 90-95% – are directly allocated to the projects themselves, leaving only a minimal portion for administrative costs. This model treats assets as ‘common goods,’ akin to those in open-source or community land trusts, avoiding the pitfalls of bureaucracy often seen in traditional structures like Community Interest Companies (CICs).

While this proposal does not advocate for an immediate overhaul of current governance, business, and charitable systems, it does propose a gradual, necessary transition towards a more equitable distribution of resources. In an era where businesses excel in generating profits and governments have the capacity to create fiscal stimuli, the focus should shift towards supporting projects that contribute to the common good. This approach, rather than bolstering institutions like banks through traditional quantitative easing, envisions a form of monetary easing that stimulates societal wellbeing.

The ultimate goal is not to build an expansive new institution or to rely on excessive funding but to create practical propositions that initiate this transition. With a focus on building momentum and crafting better narratives, this model posits that a fairer and more just society is within reach, based on the resources and capabilities we currently possess. This vision for the Commons Fund is a bold step towards that future, prioritising people, planet, and the power of collective action."

(https://www.ethosvo.org/building-a-sustainable-world/)