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	<title>Business &#8211; Ethelo</title>
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		<title>Investment Allocation</title>
		<link>https://ethelo.com/case-study/case-study-rhiza-capital/</link>
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		<dc:creator><![CDATA[case-study]]></dc:creator>
		<pubDate>Thu, 26 Dec 2024 02:41:25 +0000</pubDate>
				<category><![CDATA[Investing]]></category>
		<category><![CDATA[Business]]></category>
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					<description><![CDATA[Rhiza Capital partnered with Ethelo to engage 650 credit union members in designing impact investment products, balancing social impact, financial returns, and real-world trade-offs.​]]></description>
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									<p>Developing impact investment tools using group wisdom and real-world contraints</p>								</div>
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									<p>Developing an effective impact investment tool requires careful consideration of the trade-off between impact and financial return. In this joint project, more than 600 participants designed their favourite investment vehicle, balancing real-world factors such as risk, return, impact and term &#8211; to find an optimal financial product &#8211; for themselves, and for the institutions.</p>								</div>
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									<p>6 key<br />performance indicators</p>								</div>
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									<p>&gt;1000<br />comments</p>								</div>
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							Brian Smith						</h4>
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						<p>CEO, Rhiza Capital</p>
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									<h3><strong>A Democratic Solution For A Democratic Institution</strong></h3><p>Credit unions have long been an example of democracy in the financial world. They are member-owned and operated. The Sunshine Coast Credit Union is a full- service financial institution that offers a variety of banking and investment options to its members.</p><p>The credit union partners with Rhiza Capital to invest its members&#8217; funds and sought input on how best to enter the realm of impact investing. Rhiza Capital CEO Brian Smith knew that Ethelo would be the best tool for obtaining that feedback.</p><p>Smith has known Ethelo Founder and CEO John Richardson for years and Rhiza has invested in Ethelo so he knew what it could do and the power that comes from group decision making. Beyond that personal relationship, he thought this would be the perfect project for trying it out.</p><p>“A credit union is a democratically-owned institution, so it made a lot of sense to use a piece of democracy technology to advance a credit union,” Smith said.</p><div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><h3><strong>Creating the ideal investment</strong></h3></div></div></div></div></div></div><div class="Message_leftSideOptimisticFooter__3sP0D">Just about everything in life has trade-offs, but they take on a whole new dimension in the financial world. Every dollar that&#8217;s invested in one way is a dollar that&#8217;s not available for something else. Smith and the rest of the Rhiza team wanted to make sure those conditions were captured in the consultation.</div></div></div></div></div><p>“If an investor is expecting a financial return of say 10% or greater they may not be able to expect a big social impact,” Smith said. “Those tradeoffs needed to be incorporated into the design.”</p><p>The consultation began with a survey that captured profile information from each participant. It then asked users for their preferences on factors including:</p><p>Return on investment  Level of risk Length of investment Amount of impact  What type of causes funds should support  How impact should be reported In real life, each of these factors impacts the others, and the set up in Ethelo was no different.</p><p>The Ethelo consultation included a visual representation of those preferences that changed as new information was added. The trade-offs came into play at the end of the process when users ranked the importance of each investment topic.</p><p>In the end, each user received a snapshot of his or her ideal investment mix, while Rhiza Capital Management received a broad look at credit union member preferences.</p><div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"> </div></div></div></div></div></div></div></div></div></div>								</div>
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															<img decoding="async" width="402" height="368" src="https://ethelo.com/wp-content/uploads/2024/12/rhiza-graph1.png" class="attachment-large size-large wp-image-879" alt="" srcset="https://ethelo.com/wp-content/uploads/2024/12/rhiza-graph1.png 402w, https://ethelo.com/wp-content/uploads/2024/12/rhiza-graph1-300x275.png 300w" sizes="(max-width: 402px) 100vw, 402px" />															</div>
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									<div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><h3><strong>The power of data analysis</strong></h3></div></div></div></div></div></div><div class="Message_leftSideOptimisticFooter__3sP0D">Rhiza had a goal of 600 respondents and ended up with about 650. The consultation generated more than 1000 comments, most of which were positive.</div></div></div></div></div><p>To save time on recruiting panelists, Rhiza utilized a company to recruit participants for the consultation. Ethelo provided that company with a link to the consultation through a special integration. This is a model that can be implemented on other consultations moving forward.</p><p>For Smith, the real power of Ethelo came from data analysis, which allowed the project to move forward quickly once the consultation phase was complete. He was able to go back into Ethelo after the data was entered to adjust the variables behind the questions.</p><p>The data itself did not change, but Smith and his team were able to change the parameters to make them more realistic. This is another unique feature that Ethelo brings to the table.</p><p>Using Ethelo for this project also gave Smith a better view of the platform&#8217;s capabilities and how it could work for him on future projects. He sees the potential for better calculations in real-time as users move through the consultation.</p><p>“Now that we have a better understanding of the algorithm and the mechanics, we can do things better next time,” Smith said.</p>								</div>
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										<span class="elementor-icon-list-text">Host: Business</span>
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										<span class="elementor-icon-list-text">Community Size: 600 participants</span>
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										<span class="elementor-icon-list-text">Location: British Columbia</span>
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										<span class="elementor-icon-list-text">Project Type: Investing</span>
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															<img loading="lazy" decoding="async" width="800" height="392" src="https://ethelo.com/wp-content/uploads/2024/12/impactinvesting-image-1024x502.png" class="attachment-large size-large wp-image-883" alt="" srcset="https://ethelo.com/wp-content/uploads/2024/12/impactinvesting-image-1024x502.png 1024w, https://ethelo.com/wp-content/uploads/2024/12/impactinvesting-image-300x147.png 300w, https://ethelo.com/wp-content/uploads/2024/12/impactinvesting-image-768x376.png 768w, https://ethelo.com/wp-content/uploads/2024/12/impactinvesting-image.png 1280w" sizes="(max-width: 800px) 100vw, 800px" />															</div>
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									<p>&#8220;It worked just the way that I hoped it would. We were able to clarify what respondents were saying and the motives behind it. And, Ethelo did the data analysis for us.&#8221;</p><p>Brian Smith, CEO Rhiza Capital</p>								</div>
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		<title>Multi-Year Grantmaking</title>
		<link>https://ethelo.com/case-study/vancity-credit-union/</link>
					<comments>https://ethelo.com/case-study/vancity-credit-union/#respond</comments>
		
		<dc:creator><![CDATA[case-study]]></dc:creator>
		<pubDate>Thu, 26 Dec 2024 01:44:47 +0000</pubDate>
				<category><![CDATA[Granting]]></category>
		<category><![CDATA[Business]]></category>
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					<description><![CDATA[Vancity used Ethelo to efficiently allocate $400,000 in enviroFund grants, optimizing decision-making, reducing meeting time, and ensuring fairness across 11 judges and 50 applications]]></description>
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									<p>Streamlining Grant Allocations by Vancity&#8217;s Envirofund Visa Program</p>								</div>
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									<p>It’s not easy to allocate a $400,000 grant among 50 leading organizations playing critical roles in food supply. Add to the challenge the coordination of 11 judging panelists evaluating over 105 supporting-documents. Vancity’s team of food experts deployed Ethelo to streamline its 2-stage ‘EnviroFund’ assessment process.</p><p>The platform brought structure and cohesion to a complex evaluative discussion of over 38K potential scenarios, saving around 12 hours of in-person meeting time. After a first experience in 2015, Ethelo was used again for the same purpose in 2016 and 2017.</p>								</div>
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									<p>$400,000/year <br />over 3 years</p>								</div>
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									<p>50 Applications<br />per year</p>								</div>
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							Louise Pochalio						</h4>
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						<p>Vancity’s Community Investment Specialist</p>
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									<div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><h3><strong>Sustainable food supply evokes strong passions in many people for several reasons.</strong></h3></div></div></div></div></div></div></div></div></div></div><p><strong> </strong>To demonstrate their values and support of this activity, Canada’s largest credit union decided in 2015 to support more sustainable food systems in British Columbia through their enviroFund grants. These grants came from a portion of Vancity’s enviroVisa profits.</p><p>After assessing a diverse set of project applications in a 2-stage process, a total of $400,000 in grants were directed to increase local food production, production/distribution capacity and institutional food procurement.</p><h3><strong>The Need</strong></h3><p>Traditionally, groups of experts sit down to address complex decisions. Vancity wanted to capture the same high-quality insights of the judging panelists but with greater objectivity and efficiency.</p><p>The two-step process created a shortlist of 11 local food organizations from 50 applicants and allocated the grants amongst them. They needed to ensure fair distribution taking into consideration budget, funds requested, merit and regional presence.</p><div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><h3><strong>Structured but fluid dialogue</strong></h3></div></div></div></div></div></div></div></div></div></div><p>Vancity wanted to keep the ﬂuidity and quality of dialogue while minimizing unproductive meeting time, analysis time and document management. Furthermore, they sought results that focused their committee’s energy on expertise with the highest levels of cohesion.</p><p>The need for face-to-face contact between the 10 panelists was never in question. Louise Pochailo, Vancity’s Community Investment Specialist, stated:</p><p>&#8220;The platform allowed us to review, evaluate and compare a large volume of grant applications/documents between internal and external committee members in various locations.&#8221;</p>								</div>
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									<h3><strong>The Ethelo platform provided structure, supported fluid dialogue and fostered transparency in decision making.</strong></h3><p>In the first round of interactions, 50 letters of intent were assessed against three criteria;</p><ul><li>Measurable social/environmental impact</li><li>Action orientation</li><li>Support of innovation/sector development</li></ul><p>Vancity’s team of experts evaluated each organization accordingly using Ethelo’s integrated panels for rating and social commentary.</p><p>After the first stage of voting, the panel evaluated the 19 remaining candidates against a more selective set of conditions. In this second stage, however, Vancity wanted to attach further documentation. For this purpose, within each organization’s assessment panel Ethelo provided links to PDF files such as budgets, project timelines, and letters of support.</p><div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><p><strong>Capturing insights from remote third parties.</strong></p></div></div></div></div></div></div></div></div></div></div><p>Vancity’s local food team also wanted to incorporate the expertise of stakeholders from Metro Vancouver and the BCFood Systems Network. On the one hand, the platform’s social dialogue capability allowed obtaining external insights, leading to a more robust analysis. On the other, it simultaneously served to keep an orderly record of the conversations.</p><p>The platform also encouraged complementary forms of dialogue. Ideas did not always come when participants needed them, as some experts (not necessarily introverted) required time to process and record their thoughts. For reasons like these, Vancity is now set to expand its use of Ethelo into their Community Grants Program.</p><p>&#8220;Ethelo proved very convenient; we could access it anywhere at any time. It also made it easier to share ideas, post questions, and be more honest in expressing comments,&#8221; said Pochailo.</p><h3><strong>The Evirofund evaluation illustrates some of the challenges in finding consensus during complex decisions.</strong></h3><p><strong> </strong>There were more than 38,000 different ways that the granting committee could have distributed the $400,000 in awards to the 19 finalist organizations. By finding scenarios that simultaneously met the criteria and accounted for the insights of many, Ethelo’s platform identified the most strongly supported shortlists of local food projects.</p><p>Ethelo’s ranking of shortlists not only met the budgetary and geographical criteria, but it also maximized the decision’s “strength of support” (an internal metric that shows the level of support and unanimity in a team of experts choosing among multiple options).</p><div class="ChatMessage_chatMessage__xkgHx" data-complete="true"><div class="ChatMessage_messageRow__DHlnq"><div class="ChatMessage_messageWrapper__4Ugd6"><div class="Message_rowWithFooter__FShU6"><div class="Message_row__ug_UU"><div class="Message_messageBubbleWrapper__sEq8z"><div class="Message_leftSideMessageBubble__VPdk6"><div class="Message_messageTextContainer__w64Sc"><div><div class="Markdown_markdownContainer__Tz3HQ"><h3><strong>Results summary</strong></h3></div></div></div></div></div></div></div></div></div></div><p>Alongside the many comments registered within the platform, the shortlist became a key ingredient for the committee’s final meeting. The judging panelists selected 90% of the platform’s presented recommendations, indicating how Ethelo’s harvesting of the collaborative insights of the panelists became an essential ingredient for arriving at a more robust and highly-supported solution.</p>								</div>
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										<span class="elementor-icon-list-text">Host: Business</span>
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										<span class="elementor-icon-list-text">Community Size: 569,000 members</span>
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										<span class="elementor-icon-list-text">Location: British Columbia</span>
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										<span class="elementor-icon-list-text">Project Type: Granting</span>
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									<p><em>&#8220;Ethelo</em> <em>proved</em> <em>very</em> <em>convenient;</em> <em>we</em> <em>could</em> <em>access</em> <em>it</em> <em>anywhere</em> <em>at</em> <em>any</em> <em>time.</em> <em>It </em><em>also made it easier to share ideas, post questions, and be more honest in expressing comments&#8221;</em></p><p>Louise Pochalio</p>								</div>
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