But more giving and more resources for development does not necessarily translate into more effective solutions to our social and environmental problems. Will online markets repeat the flaws of traditional systems of private charity and public aid, or do they have the potential to change the way citizen-led initiatives change the world and make it much more effective? How can markets act to mobilize both more and better resources and relationships for development?

This study represents a first attempt to examine this phenomenon systematically, and set out to examine four main questions:

■ Do markets simply offer a means of mobilizing short term relief or could they become effective vehicles for sustainable development?
■ How do online markets currently try to measure the impact of their investments in bringing about change in the world?
■ How do they present their ‘investment offerings’ to donors in ways that might cultivate larger numbers of donors and foster long term relationships of relatively unrestricted support?
■ How might they positively influence the practice of development by fostering greater dialogue and learning among the constituents (investors, implementers and those most affected) of interventions?

Examined are 24 online philanthropy markets that facilitate public donations to organizations or businesses with a public benefit purpose, and 6 web-based informational sites that do not have as their main feature to offer a donation facility, but offer detailed information or specific criterion-based ratings of charitable organizations.