How to Organize and Fund  Free Culture Projects      Kevin Shockey @shockeyk         Founder, Mis Tribus
What?        Free culture projects often fail          due to a lack of resources.
So What?           By focusing on raising funds and resources,               a project can increase its chances           ...
Why me?
Why now? Declining interest in FLOSS Lingering confusion surrounding free software Lack of unity, more division - Freed...
OReilly Home Page (06/16/2012)
Disclaimer                  Some of this class                Is based on theories             Im currently researching   ...
Key Takeaways from Tutorial Now: - Ideas are easy, execution is hard - Most FLOSS projects fail - Lack of resources Fina...
Software Development Project Methodologies Waterfall Microsoft Solutions Framework Rational (IBM) Model Open Source E...
Eric Ries – The Lean Startup Financing Freedom - “How to organize and fund free culture projects” - Slides - Handout - eB...
So far...Startup Progress Funding Free Culture:  - Blog: news.financingfreedom.com  - Homepage: www.financingfreedom.com ...
NW St Johns Bridge
Assumptions Free Culture Project Execution Project Funding
Free Culture Assumptions Free culture projects often fail - Never shipping - Unable to attract a community Division make...
“Free” Assumptions Ambiguity between free and open source software In many cases there is a an unequal value transaction...
State of FLOSS? Projects in growth, maturity, and decline stages State is Mixed - Enterprise recognition - Limited user ...
Top 10 FLOSS Hall of Fame1.     Linux Kernel2.     GNU Utilities & Compilers3.     Ubuntu4.     BSD5.     Samba     (Top 1...
Top 10 FLOSS Hall of Fame6.    MySQL7.    BIND8.    SendMail9.    OpenSSH & OpenSSL10.    Apache
Measuring FLOSS Through search, Google Trends Through search, Google Scholar Through investigation, Mining SourceForge....
What Can SEO Tells Us? Many Thanks to Stephen OGrady and his SEO research, which he shared: “The State of  Open Source: S...
General trends for mature projects - Linux
Apache
MySQL
PHP
Open Source
GPL
General Conclusion     Most popular projects, open source itself, and free software are ALL in decline!
Emerging Technologies Dominated by FLOSS – Linux Cloud
NoSQL
Hadoop
Growth Projects             They are clearly in the growth stage of their adoption
SW Hawthorne Bridge
Google Scholar Advanced Search Google version 0.7, circa 1996? Parameters - “Open Source” exact phrase all in title - “E...
Open Source Academic Papers by Year900800700600500                                                                        ...
“Open Source” vs “Free Software” (since 1983)900800700600500400300200100                                                  ...
Two Distinct Stories Strong growth by open source. 2012 may be the most important year ever Free software has received l...
Academic Paper Questions Has research on “open source peaked? Why isnt anyone researching “free software?” Has “open so...
Most Famous Bridge
SourceForge Research Data Archive (SRDA) Many tables archived from February 2005 to present Data includes any churn in a...
Observations User base is still growing, but its slowing down There is a sharp increase in the number of new projects A...
Is GitHub Eating SourceForges Candy?
SourceForge and GitHub Smackdown Four comparisons - Number of Users - Number of Academic Papers - Number of Repositories ...
Round 4 – Source Code Repository Usage
Another Bridge
Project Execution Assumptions Most projects end in failure A successful project organization has emerged FLOSS projects...
What is Open Source Failure? A project that is unable to grow a community beyond the founder. A project that fails to sh...
Open Source Failure A project that is unable to grow a community beyond the founder. A project that fails to ship anythi...
SourceForge Projects 324,000 projects 268,554 projects with only 1 developer (83%) Only 21 projects with > 100 developers
Developers Per Project
Open Source Success Constant and synchronous communication Consistency in methodological development approach Geographi...
An Infinite Marketplace Thousands of new OSS projects every month Thousands of new apps on Android and Apple A hundred ...
Irrelevance is Your Enemy
Thought Experiment Put the following non-profits in order of their revenues: - Apache Foundation - Free Software Foundati...
Breaking Bridge
Free LOSS            Section Two – How to Organize            and Fund Free Culture Projects
Project Funding Assumptions Our software (product) is sufficient to obtain resources - Build it and they will come - Free...
Resources = Time = Opportunity Most projects fail They fail due to a lack of resources What resources? - Community - Co...
Paying for FLOSS Software is “free.” Recognition that projects are highly sensitive to resource constraints Usual metho...
Fund-raising Alternatives for Startups Bootstrapping Seed funding  - The 3 Fs  - Dumb money  - Equity investment
Examining Popular Foundation Revenues
Foundation Metrics If they are a 501(c)(3), they must file publicly their financial statements IRS Form 990 or 990EZ
Case Study: Perl Foundation                        Perl Foundation Revenues$350,000.00$300,000.00$250,000.00$200,000.00$15...
Case Study: GNOME Foundation                                GNOME Foundation Revenues$500,000$450,000$400,000$350,000$300,...
Case Study: Apache Foundation                     Apache Foundation Revenues$600,000$500,000$400,000$300,000$200,000$100,0...
Case Study: Free Software Foundation                            Free Software Foundation Revenues$1,400,000$1,200,000$1,00...
Case Study: Mozilla Foundation                            Mozilla Foundation Revenues$35,000,000$30,000,000$25,000,000$20,...
Case Study: Wikimedia Foundation                     Wikimedia Foundation Revenues$30,000,000$25,000,000$20,000,000$15,000...
Mozilla Foundation Drill Down July 15, 2003 - The Mozilla Foundation is born with a $2 million start-up support from  Ame...
Mozilla and Subsidiaries$140,000,000$120,000,000$100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000          $-  ...
Mozilla Foundation                     2011 Annual Report (sort of)
Mozilla Versus the World
Free Software Foundation Drill Down Primary channels are: - Website - Email - Conference participation Little or no soci...
Assumption Take Aways... Mixed State of Open Source - Acceptance of open source decline is misguided Best projects use p...
Another Bridge
Top Ten Startup Fund-raising Lies1. All we have to do is get 1% of the market2. We filed patents so our intellectual prope...
Top Ten Startup Fund-raising Lies (Continued)6. Hurry up because our other investors are about to do our deal7. No one els...
Fund-raising Best Practices Build a Foundation 501(c)(3) Establish a Fund-raising Program Obtain Grants Corporate Don...
Best Practices for Startups Build something interesting Innovation Accounting  - Testing  - Methodology Team  - Talent...
Build a Foundation Incorporation - Think about SEO first Mission/Vision - Ensure your mission matches up with the charit...
Setting up a 501(c)(3) Supporting documentation:  - Formal articles of incorporation  - Create corporate bylaws  - Appoin...
IRS Application Form SS-4 – Employer Identification Number IRS Form 1023 – Application for Recognition of Exemption IRS...
How to Start a Fund-raising Program Create a fund-raising committee - 5-7 members Put your fund raising goals in writing...
Finding Government Grants Grants.gov Department of Health and Human Services - http://www.hhs.gov/grants/ National Inst...
Finding Government Grants (continued) National Science Foundation - http://nsf.gov/funding/ National Endowment of the Ar...
How Can Grants Fund A Project? Must be able to align projects needs with needs of the CFP Whether it is research or deve...
Finding Private Foundation Grants Other 501(c)(3) Organizations - Private Foundations The Number One Complaint of Founda...
Top Private Foundations by Giving (June 2012)1. Bill & Melinda Gates Foundation - $2,486,342,2092. Walton Family Foundatio...
Top Private Foundations by Giving (June 2012) - Continued6. Abbott Patient Assistance Foundation - $482,610,6047. Ford Fou...
Total Giving By Top 100 US Private Foundations (June 2012)                       $18,498,784,792$46,900,000,000
Why Corporations Give? Creating programs to use company employees as volunteers Forming partnerships Promoting the corp...
Best Practices for Corporate Donations Create list of corporations Identify A-list prospects Personal contacts make a d...
Corporate Solicitation Kit Current list of board of directors Mission statement Budget information Purpose of funding ...
Most Common Forms of Corporate Support Cash Matching donations of employees Employee time In-kind
The Power of the Crowd                         Crowd Funding &                                Sourcing
Contributions From the Crowd Crowd funded - Crowd funding platforms - Donations - Merchandise - Customers Crowd source -...
The Crowd Funding Battle Royale There will be an estimated 530 platforms by the end of 2012 $280,600,000 raised by CFPs ...
Kickstarter              56% of all projects fail!
Drill Down on Kickstarter Success                                              Success Rate By Category 80.00% 70.00%     ...
Kickstarter Failure AnalysisFunding for Failed Kickstarter Projects, by Percent             0.52% 1.19% 3.89%   22.51%    ...
Kickstarter Best Practices Youre already a 501(c)(3) non-profit You have an existing brand, fan base, or personality Ex...
Kickstarter Best Practices                             Crowdfunding forces a proof                             of concept ...
The Crowd as Customer Merchandise - Make it cool - Make it limited - Use it to drive engagement - Badges (The gamificatio...
The Crowd as Donor? In 2009, the Giving USA Foundation reported individual donations were $217.79 B Of a grand amounts d...
Why Do People Give?1. Belief in the cause2. Recognition and honor3. For a tax deduction4. Family tradition5. Religious bel...
Why we give, or dont Different kinds of giving, and therefore different explanations  - People who are religious give mor...
How giving makes us feel Experience internal satisfaction, the “warm glow” Helpers high, which increases our feelings of...
Crowd Sourcing = Building Community Who ever has the biggest social network wins Build-Measure-Learn Using Social Media
The Art of Community
Final Bridge
Transmedia Production and Lean Startup Mashup Max Strategy Big Data Innovation Accounting Expert Systems Machine Inte...
Transmedia Production and Social Media Caves Supermarkets Rain Clouds Better To Give
Afraid Of Caves?
Caves Are Like…                  =
Social Media Is… The Unknown Dark Scary - Most of your customers are in there - And they’re probably talking about you!!!
Filled With Treasure
Unusual Characters
Just Do it!
Do Whatever It Takes Hire a guide Get some tools Learn the ropes Talk to people
The Internet Is…
Social Media Is Like A
How big is ∞? Facebook – 700,000,000 Twitter – 140,000,000 LinkedIn – 125,000,000 MySpace –19,7000,000 Flickr – 32,00...
∞ Needs Max-Strategy ∞ means you can’t predict: - Who will become a customer - Where you will find them - What products t...
Social Media Is Not…             About              You!
Social Media Is About Your customers: - How do you give THEM more value than you get? - How do you gain your customer’s t...
Using Social Media Doing nothing is not an option Have to answer the critical question: “Now what?” - Engage/Converse/As...
Final Suggestions Those who use social media will learn what works Break it down: - 3-5 simple tasks - Do them daily And…
Grow your Network!
The Biggest Social Graph Wins All major networks: - FB, LI, Twitter, & YouTube... All the large networks: - Flickr, Tumb...
Cutting Costs Significantly reduces cost of advertising - Nothing is unacceptable - Cost approaches $0 - Less direct or e...
Cutting Costs                If you can spend less time marketing,                recruiting, and networking…             ...
The Era of Big Data Many accepted business metrics are obsolete Engagement is the only metric that counts now Only a ma...
The Singularity is Coming Sentiment analysis is coming: - HLD: Predicting terrorist activity - CDC: Tracking epidemics - ...
Questions & Discussion                               Thank You!                         kevin@mistribus.com               ...
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Financing freedom0.71

  1. 1. How to Organize and Fund Free Culture Projects Kevin Shockey @shockeyk Founder, Mis Tribus
  2. 2. What? Free culture projects often fail due to a lack of resources.
  3. 3. So What? By focusing on raising funds and resources, a project can increase its chances of survival
  4. 4. Why me?
  5. 5. Why now? Declining interest in FLOSS Lingering confusion surrounding free software Lack of unity, more division - Freedom Cloud computing and proprietary platforms, like iOS, are: - Reducing awareness of FLOSS contribution - Reducing interest in freedom
  6. 6. OReilly Home Page (06/16/2012)
  7. 7. Disclaimer Some of this class Is based on theories Im currently researching And using
  8. 8. Key Takeaways from Tutorial Now: - Ideas are easy, execution is hard - Most FLOSS projects fail - Lack of resources Financing Freedom: - Most popular FLOSS foundations aggressively pursue funding - Success requires a methodical process - Mastery of Internet marketing
  9. 9. Software Development Project Methodologies Waterfall Microsoft Solutions Framework Rational (IBM) Model Open Source Expert Programming Agile/SCRUM Development Method Lean Startup
  10. 10. Eric Ries – The Lean Startup Financing Freedom - “How to organize and fund free culture projects” - Slides - Handout - eBook Supporting Materials - Background - Data - Illustrations (Graphs) - Vision for Maximum Strategy Community
  11. 11. So far...Startup Progress Funding Free Culture: - Blog: news.financingfreedom.com - Homepage: www.financingfreedom.com - @_ff12 One Blogger post triggers: - 5 automated social messages on 5 different accounts - 3 Twitter accounts - Linked In - Financing Freedom Page on Facebook
  12. 12. NW St Johns Bridge
  13. 13. Assumptions Free Culture Project Execution Project Funding
  14. 14. Free Culture Assumptions Free culture projects often fail - Never shipping - Unable to attract a community Division makes free culture weaker - Contributors must choose - Only able to sustain two or three projects
  15. 15. “Free” Assumptions Ambiguity between free and open source software In many cases there is a an unequal value transaction: - Many use “free” software - Few look for ways to give back to the community - Projects need to convert users into contributors
  16. 16. State of FLOSS? Projects in growth, maturity, and decline stages State is Mixed - Enterprise recognition - Limited user recognition/support - Finances (resources) are limited (often to just one person)
  17. 17. Top 10 FLOSS Hall of Fame1. Linux Kernel2. GNU Utilities & Compilers3. Ubuntu4. BSD5. Samba (Top 10 Open Source Hall of Famers. (2009). http://mstrb.us/zjn6zK)
  18. 18. Top 10 FLOSS Hall of Fame6. MySQL7. BIND8. SendMail9. OpenSSH & OpenSSL10. Apache
  19. 19. Measuring FLOSS Through search, Google Trends Through search, Google Scholar Through investigation, Mining SourceForge.net Repository
  20. 20. What Can SEO Tells Us? Many Thanks to Stephen OGrady and his SEO research, which he shared: “The State of Open Source: Startup, Growth, Maturity or Decline?”
  21. 21. General trends for mature projects - Linux
  22. 22. Apache
  23. 23. MySQL
  24. 24. PHP
  25. 25. Open Source
  26. 26. GPL
  27. 27. General Conclusion Most popular projects, open source itself, and free software are ALL in decline!
  28. 28. Emerging Technologies Dominated by FLOSS – Linux Cloud
  29. 29. NoSQL
  30. 30. Hadoop
  31. 31. Growth Projects They are clearly in the growth stage of their adoption
  32. 32. SW Hawthorne Bridge
  33. 33. Google Scholar Advanced Search Google version 0.7, circa 1996? Parameters - “Open Source” exact phrase all in title - “Engineering, Computer Science, and Mathematics” subject area - Year to Year (eg; 2012 to 2012, 2011 to 2011, etc.)
  34. 34. Open Source Academic Papers by Year900800700600500 Direct Results400300200100 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
  35. 35. “Open Source” vs “Free Software” (since 1983)900800700600500400300200100 Free Sof tw are Results Open Source Results 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983
  36. 36. Two Distinct Stories Strong growth by open source. 2012 may be the most important year ever Free software has received limited researched attention: - Out-published by a margin of 8 to 1 by open source.
  37. 37. Academic Paper Questions Has research on “open source peaked? Why isnt anyone researching “free software?” Has “open source” obscured the importance of free software?
  38. 38. Most Famous Bridge
  39. 39. SourceForge Research Data Archive (SRDA) Many tables archived from February 2005 to present Data includes any churn in any count of: active users, projects, messages, etc. Slides
  40. 40. Observations User base is still growing, but its slowing down There is a sharp increase in the number of new projects And the number of new packages are also up - But: - Releases are down - Number of files are down
  41. 41. Is GitHub Eating SourceForges Candy?
  42. 42. SourceForge and GitHub Smackdown Four comparisons - Number of Users - Number of Academic Papers - Number of Repositories - Bonus Round One - Number of Users: - SF (3 Million to 1.6 Million) Round Two – Academic papers - SF (195 to 8) Round Three – Repositories - No correlation for repositories
  43. 43. Round 4 – Source Code Repository Usage
  44. 44. Another Bridge
  45. 45. Project Execution Assumptions Most projects end in failure A successful project organization has emerged FLOSS projects are similar to startups Execution is achieved through testing assumptions
  46. 46. What is Open Source Failure? A project that is unable to grow a community beyond the founder. A project that fails to ship anything. Abandoned projects
  47. 47. Open Source Failure A project that is unable to grow a community beyond the founder. A project that fails to ship anything. Abandoned projects...when either of the 1 two conditions reoccurs st
  48. 48. SourceForge Projects 324,000 projects 268,554 projects with only 1 developer (83%) Only 21 projects with > 100 developers
  49. 49. Developers Per Project
  50. 50. Open Source Success Constant and synchronous communication Consistency in methodological development approach Geographical dispersion management through an extensive testing culture FLOSSD experience in accepting and handling the environmental limitations
  51. 51. An Infinite Marketplace Thousands of new OSS projects every month Thousands of new apps on Android and Apple A hundred thousand new e-Books Millions of social media updates - Photos - Videos - Blog entries
  52. 52. Irrelevance is Your Enemy
  53. 53. Thought Experiment Put the following non-profits in order of their revenues: - Apache Foundation - Free Software Foundation - GNOME Foundation - Mozilla Foundation - Perl Foundation - Wikimedia Foundation
  54. 54. Breaking Bridge
  55. 55. Free LOSS Section Two – How to Organize and Fund Free Culture Projects
  56. 56. Project Funding Assumptions Our software (product) is sufficient to obtain resources - Build it and they will come - Free beer will fuel our project Not much is known about how to raise funds effectively - Only one level “information” Funding is an independent function, different from __________________
  57. 57. Resources = Time = Opportunity Most projects fail They fail due to a lack of resources What resources? - Community - Contributions - Participation - Money - Attention
  58. 58. Paying for FLOSS Software is “free.” Recognition that projects are highly sensitive to resource constraints Usual methods available: - Project donation page - Merchandise Missing most lucrative donors: - Corporations - Governments - Customers
  59. 59. Fund-raising Alternatives for Startups Bootstrapping Seed funding - The 3 Fs - Dumb money - Equity investment
  60. 60. Examining Popular Foundation Revenues
  61. 61. Foundation Metrics If they are a 501(c)(3), they must file publicly their financial statements IRS Form 990 or 990EZ
  62. 62. Case Study: Perl Foundation Perl Foundation Revenues$350,000.00$300,000.00$250,000.00$200,000.00$150,000.00$100,000.00 $50,000.00 $- 2006 2007 2008 2009 2010
  63. 63. Case Study: GNOME Foundation GNOME Foundation Revenues$500,000$450,000$400,000$350,000$300,000$250,000$200,000$150,000$100,000 $50,000 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010
  64. 64. Case Study: Apache Foundation Apache Foundation Revenues$600,000$500,000$400,000$300,000$200,000$100,000 $- 2006 2007 2008 2009 2010
  65. 65. Case Study: Free Software Foundation Free Software Foundation Revenues$1,400,000$1,200,000$1,000,000 $800,000 $600,000 $400,000 $200,000 $- 2003 2004 2005 2006 2007 2008 2009 2010 2011
  66. 66. Case Study: Mozilla Foundation Mozilla Foundation Revenues$35,000,000$30,000,000$25,000,000$20,000,000$15,000,000$10,000,000 $5,000,000 $- 2003 2004 2005 2006 2007 2008 2009 2010
  67. 67. Case Study: Wikimedia Foundation Wikimedia Foundation Revenues$30,000,000$25,000,000$20,000,000$15,000,000$10,000,000 $5,000,000 $- 2006 2007 2008 2009 2010
  68. 68. Mozilla Foundation Drill Down July 15, 2003 - The Mozilla Foundation is born with a $2 million start-up support from America Onlines Netscape division FY 2005 - The Mozilla Foundation added $28 million in revenues in royalties August 3, 2005 - The Mozilla Corporation was established to handle the revenue-related operations of the Mozilla Foundation. - The Mozilla Corporation (abbreviated MoCo) is a wholly owned subsidiary of the Mozilla Foundation
  69. 69. Mozilla and Subsidiaries$140,000,000$120,000,000$100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- 2003 2004 2005 2006 2007 2008 2009 2010
  70. 70. Mozilla Foundation 2011 Annual Report (sort of)
  71. 71. Mozilla Versus the World
  72. 72. Free Software Foundation Drill Down Primary channels are: - Website - Email - Conference participation Little or no social media
  73. 73. Assumption Take Aways... Mixed State of Open Source - Acceptance of open source decline is misguided Best projects use project methodology - Growing a community - Shipping in iterations Financial support (donations, purchases, memberships) is lacking Large difference between public relationship strategies - Most successful projects use modern strategies Niche groups who are content with scratching their own itch - Dogmatic approach to community
  74. 74. Another Bridge
  75. 75. Top Ten Startup Fund-raising Lies1. All we have to do is get 1% of the market2. We filed patents so our intellectual property is protected3. Our management team is proven4. The large companies in our market are too big, dumb, and slow to compete with us5. Our product will go viral
  76. 76. Top Ten Startup Fund-raising Lies (Continued)6. Hurry up because our other investors are about to do our deal7. No one else can do what were doing8. Several Fortune 500 companies are set to do business with us9. Jupiter says our market will be worth $50 billion in ten years10. Our projections are conservative (Kawasaki, 2012)
  77. 77. Fund-raising Best Practices Build a Foundation 501(c)(3) Establish a Fund-raising Program Obtain Grants Corporate Donors Community
  78. 78. Best Practices for Startups Build something interesting Innovation Accounting - Testing - Methodology Team - Talent Leadership Use Web2.0 and Cloud Computing
  79. 79. Build a Foundation Incorporation - Think about SEO first Mission/Vision - Ensure your mission matches up with the charitable activities you plan for your 501(c)(3) Board of Directors Transparency - Expect to make all of your founding documents public - Required by IRS for all 501(c)(3)
  80. 80. Setting up a 501(c)(3) Supporting documentation: - Formal articles of incorporation - Create corporate bylaws - Appointment and record of every board meeting and action. Financial data - Financial statements - A current balance sheet Open to foreign corporations - Donations are not exempt
  81. 81. IRS Application Form SS-4 – Employer Identification Number IRS Form 1023 – Application for Recognition of Exemption IRS Form 2848– Power of Attorney Organizations must usually file a form 990 (or 990-EZ) every year
  82. 82. How to Start a Fund-raising Program Create a fund-raising committee - 5-7 members Put your fund raising goals in writing Develop a plan of action Revise your plans - Build-Measure-Learn - Contingency Share your plans
  83. 83. Finding Government Grants Grants.gov Department of Health and Human Services - http://www.hhs.gov/grants/ National Institute of General Medical Sciences - http://www.nigms.nih.gov/Research/ National Institute of Health - http://grants.nih.gov/grants/guide/ - http://grants1.nih.gov/grants/funding/sbir.htm (*)
  84. 84. Finding Government Grants (continued) National Science Foundation - http://nsf.gov/funding/ National Endowment of the Arts - http://www.nea.gov/grants/index.html Department of Defense - http://www.dodsbir.net/ (*)
  85. 85. How Can Grants Fund A Project? Must be able to align projects needs with needs of the CFP Whether it is research or development, the needs can be the same Examples: - DARPANet - The US DoD has spent > $100 million on social network sentiment analysis - The NSF just initiated a multimillion dollar CFP for Big Data projects
  86. 86. Finding Private Foundation Grants Other 501(c)(3) Organizations - Private Foundations The Number One Complaint of Foundations: - People do NOT do thorough RESEARCH! - If you do NOT qualify – do NOT apply! - When in doubt, reach out... Best Practices; Be clear about: - Purpose of your program or project. - Type of support that is needed to carry out the project. - Total amount of money that will be needed to complete the project.
  87. 87. Top Private Foundations by Giving (June 2012)1. Bill & Melinda Gates Foundation - $2,486,342,2092. Walton Family Foundation, Inc. - $1,479,636,0533. Genentech Access To Care Foundation - $587,337,3924. Pfizer Patient Assistance Foundation, Inc. - $569,495,4435. GlaxoSmithKline Patient Access Programs Foundation - $555,867,032
  88. 88. Top Private Foundations by Giving (June 2012) - Continued6. Abbott Patient Assistance Foundation - $482,610,6047. Ford Foundation - $424,695,0008. Johnson & Johnson Patient Assistance Foundation, Inc. - $416,443,5599. Sanofi-aventis Patient Assistance Foundation - $392,778,99910. The Bristol-Myers Squibb Patient Assistance Foundation, Inc. - $392,567,134$7,787,773,425
  89. 89. Total Giving By Top 100 US Private Foundations (June 2012) $18,498,784,792$46,900,000,000
  90. 90. Why Corporations Give? Creating programs to use company employees as volunteers Forming partnerships Promoting the corporation Gaining cost effectiveness Creating a win-win situation
  91. 91. Best Practices for Corporate Donations Create list of corporations Identify A-list prospects Personal contacts make a difference Stay in touch - Add to social network - Engage with your network directly (Thank you, RT, posts) Dont take “No” for an answer
  92. 92. Corporate Solicitation Kit Current list of board of directors Mission statement Budget information Purpose of funding request
  93. 93. Most Common Forms of Corporate Support Cash Matching donations of employees Employee time In-kind
  94. 94. The Power of the Crowd Crowd Funding & Sourcing
  95. 95. Contributions From the Crowd Crowd funded - Crowd funding platforms - Donations - Merchandise - Customers Crowd source - Bugs, testing, documentation, code, design - Governance
  96. 96. The Crowd Funding Battle Royale There will be an estimated 530 platforms by the end of 2012 $280,600,000 raised by CFPs in 2012 Majority are ONLY for 501(c)(3)
  97. 97. Kickstarter 56% of all projects fail!
  98. 98. Drill Down on Kickstarter Success Success Rate By Category 80.00% 70.00% 69.00% 63.81% 60.00% 54.18% 50.00% 48.22% 45.49% Over all Aver age is 44% 40.83% 39.62% 40.00% 38.30% 35.47% 33.83% 31.86% 30.00% 28.80% 27.29% 20.00% 10.00% 0.00% Fashion Technology Publishing Games Design Photography Film & Video Food Comics Art Music Theater Dance
  99. 99. Kickstarter Failure AnalysisFunding for Failed Kickstarter Projects, by Percent 0.52% 1.19% 3.89% 22.51% 11.19% 0% Funded 1% to 20% Funded 21% to 40% Funded 41% to 60% Funded 61% to 80% Funded 81% to 99% Funded 60.70%
  100. 100. Kickstarter Best Practices Youre already a 501(c)(3) non-profit You have an existing brand, fan base, or personality Extensive pre-launch preparation Social networking: - Your social engagement platform is working optimally - You consistently share valuable status and progress and communicate effectively - You maintain constant contact with anyone granting you permission Kickstarter platform: - Your project explanation is clear and concise - Imbalance between offer and value - Getting too greedy
  101. 101. Kickstarter Best Practices Crowdfunding forces a proof of concept before the product hits the shelves:
  102. 102. The Crowd as Customer Merchandise - Make it cool - Make it limited - Use it to drive engagement - Badges (The gamification of community) Services - The most successful open source businesses model
  103. 103. The Crowd as Donor? In 2009, the Giving USA Foundation reported individual donations were $217.79 B Of a grand amounts donated, the top 5 types recipients were: - Religion (32%) - Education (14%) - Human Services (12%) - Gifts to Foundations (9%) - Public-Society Benefit (7%) Direct marketing to the crowd is the most challenging
  104. 104. Why Do People Give?1. Belief in the cause2. Recognition and honor3. For a tax deduction4. Family tradition5. Religious beliefs6. Joy7. Guilt8. Fear9. To make a difference
  105. 105. Why we give, or dont Different kinds of giving, and therefore different explanations - People who are religious give more - People who plan donations, give more - People who have more, dont necessarily give more - Senior citizens who volunteer live longer
  106. 106. How giving makes us feel Experience internal satisfaction, the “warm glow” Helpers high, which increases our feelings of self-worth Some research links oxytocin to generosity: - Amygdala has oxytocin receptors that control feelings of safety
  107. 107. Crowd Sourcing = Building Community Who ever has the biggest social network wins Build-Measure-Learn Using Social Media
  108. 108. The Art of Community
  109. 109. Final Bridge
  110. 110. Transmedia Production and Lean Startup Mashup Max Strategy Big Data Innovation Accounting Expert Systems Machine Intelligence
  111. 111. Transmedia Production and Social Media Caves Supermarkets Rain Clouds Better To Give
  112. 112. Afraid Of Caves?
  113. 113. Caves Are Like… =
  114. 114. Social Media Is… The Unknown Dark Scary - Most of your customers are in there - And they’re probably talking about you!!!
  115. 115. Filled With Treasure
  116. 116. Unusual Characters
  117. 117. Just Do it!
  118. 118. Do Whatever It Takes Hire a guide Get some tools Learn the ropes Talk to people
  119. 119. The Internet Is…
  120. 120. Social Media Is Like A
  121. 121. How big is ∞? Facebook – 700,000,000 Twitter – 140,000,000 LinkedIn – 125,000,000 MySpace –19,7000,000 Flickr – 32,000,000 YouTube – 3,000,000,000
  122. 122. ∞ Needs Max-Strategy ∞ means you can’t predict: - Who will become a customer - Where you will find them - What products they will buy Need to: - Simplify around keywords - Find better tools - Data & AI
  123. 123. Social Media Is Not… About You!
  124. 124. Social Media Is About Your customers: - How do you give THEM more value than you get? - How do you gain your customer’s trust? With trust comes permission
  125. 125. Using Social Media Doing nothing is not an option Have to answer the critical question: “Now what?” - Engage/Converse/Ask/Answer Can’t implement and forget Deliver value
  126. 126. Final Suggestions Those who use social media will learn what works Break it down: - 3-5 simple tasks - Do them daily And…
  127. 127. Grow your Network!
  128. 128. The Biggest Social Graph Wins All major networks: - FB, LI, Twitter, & YouTube... All the large networks: - Flickr, Tumblr, Hi5, & MySpace... All the small networks: - About.Me, Paper.li, PhotoBucket, Pinterest, Wikia... All future social network systems...
  129. 129. Cutting Costs Significantly reduces cost of advertising - Nothing is unacceptable - Cost approaches $0 - Less direct or email costs - Generate leads (24/7/365) E-Commerce - Potential to sell (24/7/365) - Cost approaches $0
  130. 130. Cutting Costs If you can spend less time marketing, recruiting, and networking… Spend more time producing
  131. 131. The Era of Big Data Many accepted business metrics are obsolete Engagement is the only metric that counts now Only a max-strategy has a chance Mining the Internet for permission Using Artificial Intelligence to predict engagement and permission
  132. 132. The Singularity is Coming Sentiment analysis is coming: - HLD: Predicting terrorist activity - CDC: Tracking epidemics - Big Data - Data Mining - Machine Intelligence A Minority Report Future - Followed and interrupted - Face recognition will track us - We already carry a tracking device
  133. 133. Questions & Discussion Thank You! kevin@mistribus.com @shockeyk @mistribus @_ff12

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