Philanthropy in a digital age


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A presentation for fundraisers and fund development managers on how technology and specifically data is influencing the philanthropic industry

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  • Why is this relevant to the charitable sector, what are some of the ethical questions, bleeding edge technology and how this will affect charities’ work flows. Explore ethical questions like – what are the obligations of where donor data is stored?, how does posting a PDF of annual report with donor names infringe on privacy?, what is NOSZA? How does this affect my donor’s rights or my organizations Code of Ethical Fundraising, what role can/should charities play in shaping what this looks like? Participants will be asked to submit their questions in advance so that up-to-date information can be provided.
  • So in this new economy, who is influencing whom?
  • LinkedIn Labs – social networking image… what’s your organizations value?Self reflection exercise.
  • The fourth premise is that we are in the beginning stages of a revolution:To quote - “Skills have been replaced by knowledge. Attitude has replaced experience. Leadership has replaced management.”Just look at Facebook or Google +. In Facebook, you have friends and fans. You can unfriend a friend and unlike an organization  just by clicking a button. Or in Google you can create online cliques of friends by cataloguing and categorizing as you see fit.This shift in how we define community is also changing how we raise funds. Technology is allowing us to crowdsource financing either through donations, micro-loans, micro-donations, crowdfunding projects and raising start-up capital for new ventures. Technology is allowing us to move back to a village capital model where all ships rise on the collective success. This is the new economy and one that is going to shape the way that charities raise funds for the next three generations.
  • Data cross licensing
  • Data cross licensing
  • Lucy Bernholtz put together a timeline of the business of philanthropy a few years ago. This chart shows the way that people are interacting in the charitable space. It is no longer seen as a repository of “good feelings and money for good.” The charitable sector is sophisticated and complex. Like any industry, the philanthropic market now includes formalized corporate structures, academic reviews, regulations and standards and ways of measuring growth and change.This leads me into my third premise:Philanthropy is dead.Charities are no longer just operating because it is the right thing to do. There is a competitive landscape. I am going to pick one type of group because they have great market visibility... Breast Cancer.Just looking at Calgary’s market there are 15 organizations that deal with breast-cancer related issues. These organizations range from pre-and post-care support, to research and development, to family support, to religious-based support groups. One way that they are trying to “compete for donor support” is by diversifying their organizations product and service offerings. Ultimately what this means is that there is duplication in the market. How donors manage this duplication moving beyond just the emotional connection, there is now a need for donors to understand difference between one support group service offered through agency Y and another support group service offered through agency X. Don’t get me wrong, emotions and who is asking is still very much an influencing factor.Because of this new competitive landscape, the exchange between those that are financing the organization (i.e. Donors), those that are benefiting from the organization, those that are regulating the organization, and those that are working within the organization is no longer ONLY goodwill based.Don’t get me wrong, people are still donating. Charitable decisions are still predominantly made based on emotions first. But long-term engagement with donors, whether they are individuals, family foundations, large corporations or small businesses are built around expectations. Those expectations include some sort of exchange. That exchange can be as simple as a thank you note or as complex as a Social Return on Investment review.This means that the way organizations approach accessing funds has to shift.
  • Local examples:DIRTTConscious BrandsBenevity
  • 2008 stats
  • Philanthropy in a digital age

    1. 1. Philanthropy in a Digital Age:2013How Cloud Computing & Big Data Influence the Social Profit SectorMonday, May 27th – 1:30pmGena Rotstein,
    2. 2.  Financial: The way that money flows into thecharitable sector is changing due to the informationavailable to donors and their advisors. Operations: The way that charities operate is goingto shift significantly due to the rapid growth andshift in data related technology. Policy: Government is going to be required toaddress holes in legislation as the philanthropicindustry evolves.Thesis
    3. 3.  The intersection of technology and socialchange Implications on charity/NPO workflow Ethical questionsKey Learnings
    4. 4. What data are you collecting?
    5. 5. Photo credit: Steve Jurvetson/Flickr
    6. 6.
    7. 7. Why the Cloud?The main relevant features: Resource/storage virtualization Scalability and elasticity Efficiency of resource sharing Usage optimizing/optimized by usage Ease of usage Fast information sharing, delivery and control Accessibility Anonymity
    8. 8. “Unlike in past eras, social sector organizationsare now in direct control of a mass mediacommunication medium, more powerful thanany that proceeded it”- The Communications Network
    9. 9. Information FlowDonor Advisor Charity
    10. 10. The Power of Networks
    11. 11. The evolution of charity financialtransactions
    12. 12. Source: Network for Good, 2012
    13. 13. What is the data? Who owns it? Who manages it?Image: Google Charity
    14. 14. Place2GiveGovernment3rd PartyEvaluatorsCharitiesMedia/Community/Social MediaDonor/User
    15. 15. Charities (annual reports, businessplans, project plans, financials)Donors (testimonials, searchpatterns, profiles)News Aggregators – Google News,Social Media (Twitter, LinkedIn,Facebook, YouTube)3rd party partners & public sources –CRA, Charity Intelligence, Katipult,Dexterity Consulting, FraserInstitute, Imagine CanadaPlace2Give
    16. 16. Charity Profiles Donor Type/Fit ScoreOperations OutcomesRiskFinancialManagementCommunityEngagementMaverickSteadyInformedPsychographic Analysis
    17. 17. Place2GiveDatabaseAPI #1API #2API #3AdvisorToolboxDataResaleCorporateGivingPortal~1100 users/mo researching 2 charities~$3MM transacted annually from data
    18. 18. What is the data used for?Funders Start conversations Find opportunities Make decisions Share stories Influence policy Drive impactCharities Building newbusinesses Identifying newsolutions Source strategicpartners Influence policy Drive impact Lead the conversation Identify marketopportunities Understand competition Find opportunities Share stories Drive impactSocial Enterprises
    19. 19. Case Study: Hack-a-Thon
    20. 20. Creative Economy
    21. 21. Collective ImpactSource: Collective Impact – Kramer, FSG Consulting
    22. 22. Technology & Collective ImpactJoeAgency #1City Emergency Response UnitPlace2GiveGeotagging/Geo-locationMobile Tech company/AppDeveloperGeotagging + Geo-location + Frontline Agency + Emergency Responder Community Engagement and Disaster Relief Strategy
    23. 23. Case Study: Micro-Lending
    24. 24. Ethical Context Correlation vs. Causality The shifting of control from users to the third parties The storage of data in multiple physical locations acrossmany servers around the world possibly owned andadministrated by many different organizations The interconnection of multiple services across the cloud Wisdom of crowds
    25. 25. Ethical Applications Relationship between charities and stakeholders Anonymity Publication of annual financial statements Accountability Use of data – Function Creep Relationship between charities and CloudCompanies Patriot Act and who has access Exercising control over personal data Ownership
    26. 26. Digital Legacy PlanningHow data is influencing the estate planning and planned givingconversationsPhoto credits:;;
    27. 27. How will you use data to further yourorganization’s mandate? Descriptive – reporting & dashboards Diagnostic – finding problems Predictive Analytics – forecasting & risk assessment Prescriptive Analytics – business optimization
    28. 28. Book List Philanthrocapitalism Giving 2.0 Giving Well The Art of Giving End of Fundraising Impact Assets Uncharitable MFG Change, Generating SocialCapital, Charity Hive - Blogs The Creative Class The Blue Sweater Soul of a Citizen The HIP Investor Harvard Business Review,Stanford Social InnovationReview
    29. 29. References Network for Good The Communications Network Stanford Social Innovation Review Un:Common Innovation “The Ethics of Cloud Computing: A Conceptual Review”by Timmermans, Job et al. “Big Data: A revolution that will transform how we live,work and think” by Viktor Mayer-Schoenberger CBC – Spark episode 218 “The Human Face of Big Data” by Rick Smolan
    30. 30. Contact informationGena Rotstein, Chief