Tuesday, April 26, 2011
Method Tweeting: Using theatre techniques to engage your social media audience
Friday, April 08, 2011
What do Social Entrepeneurs and Sesame Street have in common?
Combining social good and the power of consumers is nothing new.
I came across a great article by Allen R. Bromberger, A New Type of Hybrid. In it, he discusses how social entrepreneurs are using a hybrid model to combine the for-profit and nonprofit models.
Museums and performing arts organizations create for-profit retailers to sell merchandise, such as posters, jewerly, and books. And the hybrid model is nothing new to public broadcasting. The Children’s Television Workshop, owners of the Sesame Street characters, use separate nonprofit and for-profit organizations to both achieve business objectives and further a social mission.
Dan Pallotta, in his book, Uncivilized, points out why this arm's length model is used for supporting social good with commercial activities. Rather than being politically or economically motivated, it was a religious view held by the Puritans who came to America in the 17th century. They believed that any commercial activity was sin. However they also understood it necessity, so to atone you could perform charitable activities and - never the twain shall meet.
In his article, A New Type of Hybrid, Bromberger discusses how modern social entrepreneurs are using separate, but contractual linked entities to accomplish their goals.
For any nonprofit concerned with the legal implications of UBIT (Unrelated Business Income Tax), or for-profit entities concerned that the pursuit which want to pursue a social mission, a single hybrid structure that contractual binds the nonprofit and for-profit entities may be a solution.
But Bromberger points out, it isn't simple.
In the article, Bromberger describes various types of legal entities typically used in social entrepreneurship including, B corporations and benefit corporations and how they differ as well as the low-profit limited liability company (L3C) option.
He describes legal options to enter into activities together to achieve social good.
- Parent-subsidiary model - where a nonprofit creates for-profit subsidiary
- Commercial transactions and collaborations between nonprofit and for-profit companies (arm's length model)
- Corporate sponsorships and commercial co-ventures
- Contractual hybrids
There is also a great discussion of legal ramifications of some of the various options and Bromberger spells out the particular IRS rules to consider.
- Joint Ventures
- Private Benefit
- Unrelated Business Income Tax
- Conflicts of Interest
- Related Party Transactions
- Form 990
I also loved Milton Friesen's comment about using the open source model - create a platform upon which individual organizations can built new models - like allowing developers to create apps for an app store.
So what does all this very geeky, public policy mumbo jumbo mean?
Through open collaboration, we can essentially crowdsource innovation in social good and social entrepreneurial models! How cool would that be!
Thursday, March 31, 2011
SXSW: Nonprofits and Free Agents in A Networked World
And what happens when a passionate, capable, and agile free agent who is eager to help meets this fortress? They crash into a wall.
Free agents have responsibilities too. They have to demonstrate how they help, not hurt, the cause. Kanter mentioned having a code of conduct for free agents, so expectations and boundaries are clearly outlined.
Craig Newmark (@craignewmark), founder of craigslist.org and Craigslist Foundation, and free agent extraordinaire, was in attendance. He pointed out that free agents help charities and NGOs stay connected with the people they serve at the ground level.
- Be a network weaver. Start by mapping out the relationships within your organization and you will probably find you are talking to the same people.
- Develop an engagement strategy for people outside your organization and follow it
- Fail fast and fail cheap. Reassess afterward.
Tuesday, March 29, 2011
Text-to-Donate Fundraising for Non-Profits
Typically, text-to-give campaigns involve using a for-profit ASP (application service provider) to act as the trusted third party between the phone carrier and the nonprofit. This ASP provider manages the short codes and keywords and typically charges a monthly fee ($79-$99/mo) and a per text charge ($0.48/txt). Bridge Communities used Give By Cell.
Then they shared this little tidbit of information:
Really? Breaking even a success? She also mentioned her costs to be approximately $4000 to run the campaign for a single special event. This price tag is beyond the reach of most NPOs.
In addition to the high cost, the delay between the donors text and funds actually being received by the charity can be as long as 30 to 60 days.
The process for text-to-give campaigns can be complicated. When a donor texts to donate, they receive a confirmation message to which they must reply to complete the donation. There is an average 30% dropoff rate for Bridge Communities. Many donors were kids on family plans, and carriers frequently do not permit ad hoc text charges on family plans.
My biggest takeaway from this case study is that with text-to-give campaigns, the NPO does not have the ability to collect donors’ personal information such as name or email address. This makes it impossible to follow up with a thank you or develop a long term relationship. Instead, consider text-to-pledge campaigns.
With text-to-pledge, organizations collect vital donor data with which to follow up and collect the pledge, so they can develop the relationship with the donor.
Another consideration was the judicious promotion of the text-to-give campaign. Since the minimum donation on the web campaign was $25 and the text campaign was set at $10, Bridge Communities carefully promoted the text campaign where it would not cannibalize their web and other donations.
For maximum success, Amy recommended using emotional appeals, making it fun, and using an emcee or other high energy spokesperson at the event to create a sense of immediacy and encourage attendees to pull out their phones and donate right then.
For more comments on this topic, read the tweets on #text2donate Twitter hashtag.
Monday, March 28, 2011
SXSW wrapup: Let's Hook Up: Brands, Celebs, and Non-profits
In a panel (click for recording) with Iraq and Afghanistan Veterans of America (@IAVA) and LIVESTRONG (@LIVESTRONG) panelists, Katie VanLangen (@kvanlangen), Dir of Strategic Partnerships, and Paul Rieckhoff (@paulrieckhoff), Exec Dir of IAVA and Chris Brewer, Sr Mgr, Dev Comm with LIVESTRONG discussed using sponsorships and celebrity endorsements for your cause.
The key is to find a sponsor who really cares about your cause and then demonstrate the ROI to their brand.
Be sure your cause is a good fit with their personal interests. This will help alleviate possible problems when and if conflicts arise, such as for scheduling appearances. A sponsor who has an early morning flight will be much more likely to stay late at your gala if they truly believe in your cause than one who only has a passing interest.
If you are going to involve a celebrity in your special events, ensuring their security and comfort is paramount.
They also mentioned Movember as a great example of how nonprofits can use the power of social media to engage supporters. Read more about Movember on Wikipedia.
Check out the comments for this panel on the Twitter hashtag, #letshookup.
Wednesday, March 23, 2011
SXSW book reading: The Future of Nonprofits
David J Neff and Randal C Moss book signing for The Future of Nonprofits
Charities also must pay attention to the rise of the individual fundraiser. Don’t be satisfied for supporters to simply like your cause, engage them and call them to take action.
Awareness is dead. Advertising is in. Organizations must make a business case for each new idea. Ask; is it revenue positive or revenue neutral? Is it sustainable?
If you are not structured to innovate, you won’t innovate. Organizations must create cultures that encourage new ideas from staff and have procedures in place which facilitate the adoption of new ideas.
Check out the slideshare from David J Neff. Or for more tidbits of knowledge, 140 characters at a time, read the comments on the Twitter hashtag, #thefutureofnpos.
SXSW and NTC wrapups
There was so much brain-filling information and best practices shared that it is too much for one post. Therefore, I will be posting wrap-ups and summaries from several of the sessions I attended here on this blog over the coming weeks.
Watch for lots of nerdy, techie, geeky, nptech goodness coming at you soon!










