This document discusses the opportunities and challenges that social media presents for the public sector. It argues that social media can empower communities, increase transparency, and improve services, but that many public sector organizations are not prepared for the more informal, collaborative, and fast-paced nature of social media interactions. To thrive with social media, organizations need to loosen up by becoming more trusting of staff, transparent, agile in responding quickly, informal in tone, and collaborative by tapping into community input. However, not all citizens are currently online or engaged.