Category Archives: Tech

Will Your Nonprofit be Ready for the Future of Payments?

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This article was originally published on nten.org in January

15NTC poster

from nten.org on instagram

One recent sunny afternoon in Austin, I gathered with a small crowd of NTEN 501 Club NPTechies to lunch and learn about digital currencies and payments innovations.

We were there to talk about Bitcoin—what it is (digital cash), what it isn’t (internet not required), why you would want to take advantage of it (0% transaction fee, anyone?), and what you need to know before implementing (multi signature wallets!)

The informal discussion was led by presenters, David J Neff, Digital Strategy Manager at PwC and Jacob Parks, Legal Researcher at the Association of Certified Fraud Examiners. (You can watch the whole thing on Capital Factory’s YouTube or read my blog post for a summary.)

Most importantly, I learned that tech-savvy charities need to address changes happening in the payments landscape NOW.

Timing is perfect for you to learn from trailblazing organizations already breaking ground on the new frontiers, while still being early enough to claim advantages for your own cause. For example, digital currencies, such as Bitcoin, offer an excellent fundraising currency for micropayments and microlending because they provide a platform where you can give $0.25 without credit card fees eating it up.  Organization who have a good strategy in place will be poised to gain exposure to new sources of support with little accounting risk.

Digital currencies aren’t the only thing shaking up the payments landscape. Changes in physical security, such as chip-and-PIN (smartcard) technology, are already being used widely in Canada and Europe and will be expanding in the United States. ApplePay and others are radically increasing the adoption of tap-to-pay NFC platforms, especially in event-based scenarios. Will your nonprofit be ready?

All this innovation has not gone unnoticed at the major nptech software companies, either. PayPal has added digital currencies and wallets to its lineup for merchants and more is on the way. Even Microsoft is accepting Bitcoin! Software providers who want to keep their customers are looking for creative ways to integrate more payment options into their solutions. As they do, more charities will have more ways to connect with donors within existing toolsets.

At the 2015 Nonprofit Technology Conference, we are going to take this discussion to the next level with an expanded panel of experts to talk about how payments innovations are changing the way organizations engage with their constituents. David J Neff will join NTEN veteran, Jason Shim from Pathways to Education Canada, as well as pros Alissa Ruehl from Blackbaud and Robin Dupont from PayPal in a panel you won’t want to miss!  

See you in at #15NTC

NTC15 Session #1048:
Cryptocurrency that Cares: A primer on how digital currencies and payments innovations can help your organization

 Follow along on Twitter with #15NTCmerchant on Wed, Mar 4 1:30pm – 3pm CT

Nonprofits and Bitcoin – 501 Tech Club Austin panel

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In October, the Capital Factory hosted the 501 Tech Club of Austin, an affinity group of NTEN, the Nonprofit Technology Network which is a community transforming technology into change. The panel was entitled “Nonprofits, Bitcoin and Digital Currencies.” Presenters included David J Neff, Digital Strategy Manager at PwC and Jacob Parks, Legal Researcher at the Association of Certified Fraud Examiners.

 

Before our discussion began, participants got a quick primer in bitcoin. You can learn more about Bitcoin in this primer from Princeton:
https://wws.princeton.edu/news-and-events/news/item/bitcoin-primer

 

In the June issue of NTEN: Change, members read about how Bitcoin may be a game-changer for fundraising and nonprofits:
http://issuu.com/ntenorg/docs/nten_change_june2014_final/18?e=11383070/8364413

You can also watch this accompanying recorded webinar with David J Neff and Jason Shim of Pathways of Canada:
http://www.nten.org/events/webinar/2014/05/21/bitcoin-for-nonprofits-a-fundraising-digital-disruptor 

 

Some of the key learnings from the panel included:

What is digital currency or Bitcoin?

  • Bitcoin is a peer-to-peer digital currency. There are many “altcoin” alternative digital currencies too.
  • It’s like digital cash. Once you pass it to someone, there is no real way to track it. 
  • You store your coins in a vault at an online exchange (eg, Coinbase) which generates a wallet key you use to exchange coins. Be sure to pick a reputable exchange!
  • You don’t need a computer to pay with Bitcoin (eg, write your vault number and pass it on a napkin.)
  • Bitcoin value fluctuates more than traditional currencies, making it also like an investment. (Around $650/coin once, now closer to $430/coin and still on the move!)
  • Mining Bitcoins is very complicated. 
  • Accepting Bitcoins on an e-commerce website is technically very easy.

 

Why Bitcoin?

Advantages of implementing Bitcoin at your organization include:

  1. Access to new markets and supporters by being a first leader
  2. Reduced (or zero!) transaction costs 
  3. Increased opportunity of provide micro-financing internationally, especially where anonymity increases program effectiveness (eg, instances of govt oppression, etc) 

 

Security

Tips for reducing your exposure to fraud:

  • Always use 2 factor authentication for bitcoin transactions (eg login with a password, confirm with a text message)
  • Segregate duties (for digital currency transactions, same as you would to reduce check fraud at your organization
  • Multisignature wallets coming soon — support segregation of duties by requiring at least 2 signatures to spend
  • Hot wallet vs Cold Vault — keep a portion of coins in wallet for current use. Unused coins can be put in “cold” storage on a computer that is not connected to the internet

Know before you implement

Before adding bitcoin, know how to account for it! There are no GAAP standards yet, although the IRS has released a statement that bitcoin will be treated as property. Have a strategy in place before you start accepting transactions.

Number 1 source of fraud at organizations is check fraud (#2 is falsified expense reports). Minimize your exposure to risk by segregating duties to spend digital currencies. Implement multisignature wallets as soon as possible.

 

Why now?

By implementing now, organizations can become a leader in nonprofit bitcoin use while still being able to learn from the experience of those already transacting. Organizations can gain exposure to new markets for fundraising messages with little additional accounting risk. Be prepared for the day when a major donor walks in and asks to leave their endowment-starting donation as bitcoin!

 

Additional links mentioned during our discussion:

 

How to mine bitcoin–one of many examples available via search! (this is not an endorsement of any product):
https://www.youtube.com/watch?v=GmOzih6I1zs 

 

Newsweek article on the guy who didn’t invent bitcoin:
http://www.newsweek.com/2014/03/14/face-behind-bitcoin-247957.html 

 

Do you have a link to share about Bitcoin and Nonprofits? Leave a comment!

Party Mode = Crowd-source Event Pics

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Recently, I waxed philosophical about certain demographics’ adoption of Google+ and how it drives participation and content there. Another great example of how Google is implementing content driving services to their new G+ adopters is the crowd-sourcing photography feature, Party Mode. Basically, Party Mode enables smartphones to automatically upload any photos or videos taken during an event to the Google Event, sharing them with other attendees in real time.

What a great feature! Live, real-time photo sharing?! There are vendors charging an arm and leg to provide this kind of service, including hardware and complicated infrastructure set ups. However, by capitalizing on the phenomenal growth of the BYOD (bring your own device) craze and the ubiquity of high-speed data network access (4G, LTE, etc) for smartphones, groups of any size can crowd-source party pics!

There are unlimited possibilities for nonprofit organizations and special event managers to use this free functionality:

  • Stream photos from the Event page on a big screen
  • Devise photo “scavenger hunts” to drive participation (eg, a couple dancing, group shot of your table, self-portrait)
  • Provide props to boost creativity. (eg, silly hats, mustaches on sticks) Make it fun.
  • Schedule a photo “flash mob” time, when everyone takes a photo at the same time. Got an MC? Have them call it out. “Everyone smile!”
  • Silent Auction: Post photos of items with recent bids. Consider assigning a volunteer to do this rather than the bidders themselves.
  • Too busy at the event itself? Encourage participants to upload their photos “after the fact” when they get home.
  • Honor your best photographers with acknowledgements, praise, and prizes 
  • Share photos in event follow-up communications. Don’t forget to include a call to action!

If you want to try this at your event, start by setting up your event in Google+ and inviting attendees. Provide instructions to attendees when they get there: Log into G+, Join Event, Enable Party Mode. If attendees have already joined the event on Google+ and have a Droid smartphone, the event will already be on their calendar and (depending on settings) they will receive automatic notification to start Party Mode at the start time of the Event. (Bonus! = You don’t have to do a thing!) For other attendees, consider providing a 2D bar code (QR code, MS tag) that links to the Event page itself, so they can join too without having to search for it.

Screenshot of Google Event example with 4 contributing photographers in Party Mode

G+ finds its audience! And it’s not who you think.

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My husband never joined the infamous Book of Face… and now he never will.

At first, he was just being contrary; he actively avoided doing what everybody else was doing. But after a while, I think he was just intimidated. The thought of managing the flood of all those friend requests was too daunting and so he avoided the unpleasantness altogether.

Now, he has finally initiated himself into the ranks of social networking–without the Facebook baggage. And he’s not the only one of my friends to do so. I now have several friends in G+ who are not anywhere else. They are all male, thirty-something and have families.

I’m sure Google wanted entrepreneurial, tech savvy Millennials to flock to their new social network, and we did at first, but then we never really engaged there. Who Google is actually attracting and getting engagement from are thirty-somethings: fathers, busy with kids, who have never joined a social network before. This means that techies like me now have to update multiple social networks if I want all of my friends and connections to see my pictures, posts, and event invites.

My husband on G+

What a great opportunity for Google! They have at their fingertips a brand new audience as yet untapped by social media marketers. This demographic is ripe for opportunities for marketers of all types–sports, food & beverage, entertainment, news & weather.

G+ has won in 2 ways: Not only to they get a brand new, untapped audience of thirty-something men with little exposure to existing social networks, but they also get the tech savvy mom who just wants to see the cute pictures of daughter that dad is sharing from his ‘Droid…

Stacy Dyer on G+

Why Mobile Won’t Work Magic

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I attended a webinar recently where the presenter attempted to demystify mobile magic by explaining that it is more like Houdini magic than Disney magic – that is real and it is something you can learn.

First, let’s call that Harry Potter magic just because I like the balance of Harry/Harry.

Now, I’m going to completely disagree.

Mobile isn’t magic—not even learn-able, slight-of-hand magic. There are no tricks and there are no secrets. Sure there are similarities to theatrical magic; getting mobile right takes a lot of hard work, dedication, and admittedly, a bit of showmanship never hurts!

The truth is mobile is not a magic panacea for all that ails your organization’s lackluster fundraising results. You do not add a mobile website or donation form and – poof – watch those donations roll in. However, mobile can be used as a valid tactic for expanding your reach and reinforcing your message, thereby increasing your level of engagement with your constituents.

Rather than thinking of mobile as a magic trick, I prefer to think of implementing mobile tactics in terms of a learning a new style of dance. You already know how to elegantly waltz your way through a direct mailer. Your sophisticated email strategy is as alluring to your donors as a sultry tango. Adding mobile-enabled elements to your existing communications is like throwing in a little Texas swing. You already know how to dance with your donors, mobile is just about doing to a slightly different beat.

By finding ways to leverage your message into mobile channels, such as text messages or mobile-optimized webpages, you augment the repertoire and relationships you have already built. Identify where mobile can supplement and reinforce your existing efforts. Rather than considering mobile tactics as a separate campaign, look for creative ways mobile can enhance current, already agreed-upon goals. Mobile isn’t a new trick; it’s just another way to dance.

Bottom line? Don’t try to use mobile to pull a rabbit out of your hat. You will fail. Instead, focus on how you are already interacting with your donors and begin integrating a few new mobile steps into your choreography.

Why Google+ will kill Facebook

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I know what you’re thinking. “Ridiculous! I checked that out a few weeks back, but since none of my friends are on Google+, I went back to Facebook. Wasn’t that just some sort of craze?”

It’s true. Usage dropped off significantly after the first initial rush. And Facebook has matched most of the functionality that made Google+ unique in the first place, but there is a reason why Google will eventually win this battle. They have a key integration that Facebook can’t touch – Picasa.

I love Google’s Picasa. Here’s why: I can edit, tag, annotate, and organize my photos offline. You can’t do that on Facebook or on Flickr.

With the stand-alone Picasa application that installs on my computer, I do not have to be connected to the internet to create an album. This is crucial when I’m, for example, on vacation and don’t have a regular internet connection. No one wants to spend their scarce holiday hours locked away in a coffee shop, fighting with Facebook’s photo uploader, wasting precious daylight tagging and commenting. With Picasa, I can do it all “back at camp” in the evenings and then upload the whole album, tags, comments and all, when I get to a wifi hotspot.

Because of this offline capability, I use Picasa all the time, even when I’m not on holiday. There is no (and never will be) an easy way to share my Picasa albums on Facebook, so I would love to have all my friends leave the book of faces behind and come over to the Goog-side. I want them to have their account so they comment, +/like, and share my photos, just as they would if I had uploaded all my images to Facebook. That way, I get all the benefits of the social sharing, but I can keep using the offline, stand-alone Picasa app to manage my photos.

I’m not saying that Picasa is the best photo manager out there – far from it. But its integration with Google+ will be the killer feature that encourages more users to share their photos on Google+ rather than on Facebook. Status updates with photos are 120% more likely to get interaction than text only posts.

The more photos I post, the more content there will be, the more of my friends will come over to browse.

Wake up Facebook and smell the photo management app! It will be the key to future social site adoption!

How to Launch a Rapid Response Campaign like a Rockstar

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The Bastrop Fires (image courtesy of AHS Media Arts)Here in Austin, I have been humbled by my community’s response to the central Texas wildfires. Individuals, small local businesses, and national corporations alike have clamored to offer their generous support to everyone affected by the fires.

This disaster, hitting so close to home, literally, has been an eye-opening experience for me as a fund raiser because many local nonprofits were unprepared for the outpouring of support that came from the community.

While this is a good problem to have, as far as problems go, there are few simple steps that every nonprofit can take RIGHT NOW to make sure they are ready to rise to the challenge when communities pour out their hearts in support of a common cause.

Start with a Simple Web Form

Create a simple form that can easily be placed on any website. Keep your form short and sweet. Ensuring it doesn’t take up too much web “real estate” will increase the number of websites willing to place it on their site. Keeping it simple also increase the likelihood of your form being prominently featured. Ideally, you want your form to be on the front page and “above the fold” to get as many impressions as possible.

Build your form using Cascading Style Sheets (CSS) so it can easily blend into any site. Webmasters will be more likely to publish your form on their own sites since it will automatically take on their sites’ look and feel without any additional work.

Make sure your form can be easily distributed as snippets of code so even novice webmasters will easily be able to embed your form on their own sites. With the form still hosted by you, you will have complete control over the content and can change it at any time.

Control Your Message

During non-urgent times, use your rapid response form to highlight your latest accomplishment, share a video or picture, or even let people sign up for your newsletter. Use rich media like pictures and video to keep your form interesting even when it is not “activated.” In times of need, quickly update the message on your form to distribute important information to the community, collect urgently needed funds, or whatever call to action you need most.

Webmasters are usually most likely to let you ask for donations during times of disaster. However, that doesn’t mean webmasters like hosting donation forms on their sites all the time. To increase your forms’ popularity, use your rapid response form to distribute information most of the time and only ask for donations in times of dire need.

Build Your Network Before You Need It

Encourage embedded forms throughout your supporters network of websites—other nonprofits, corporate sponsors, individual bloggers—so that your forms are already in place and ready to go when the need arises. Start building this network right now, don’t wait!

Launch a campaign that targets those technically savvy supporters who are most likely to have a website on which to feature your rapid response form. Use Facebook and Twitter to point them to your rapid response form. Be sure your form has the snippet of code for them to embed on their site featured prominently. Ideally, the snippet should be right next to your share buttons for Facebook and Twitter, so all users have to do is copy and paste.

To increase the number of people who distribute your form, customize the content for each audience. For example, if your organization’s mission is animal wellness, create a form that features kittens for cat lovers and another with puppies for dog lovers. Targeting your content will widen your audience and increase the overall exposure for your rapid response form.

Ways to Use a Rapid Response Form

Obviously, you can use a rapid response form to ask for donations, but that is only the beginning. Your new form has all the potential power of a grassroots, distributed information network. Other ways you can use your form include:

  • Political activism – encourage supporters to contact their representatives to speak out against potential funding cuts or other legislation
  • Activate community action – Flash mob at 12:30 at City Hall!
  • Information alerts – think news alerts; when something is happening right now that your supporters need to know about immediately
  • Generate matching gifts – We need another $2000 by 5pm to qualify for that big match from the Mr. & Mrs. Rich Foundation!

Now that you know the basics of creating a rapid response campaign for your organization, how will you put it into practice? Share your ideas!

Want more examples?

I love this story from NTEN about a Marfa radio station’s Facebook page becoming a hub for community alerts and info.  The key is to have your network in place BEFORE the emergency. Read these related articles and let me know what you think.

Related articles:

http://www.nten.org/blog/2011/09/19/how-simple-facebook-strategy-can-turn-crisis-community

http://forums.techsoup.org/cs/community/b/tsblog/archive/2011/09/16/cool-app-roundup-apps-for-disaster-and-emergency-situations.aspx

Cloud 101: What’s the Hype?

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There’s been a lot of buzz around cloud computing lately. But what exactly does being “in the cloud” mean? And how is going to affect the way business is done? The short answer: there are no easy answers.

What’s in a name? That which we call a cloud…

While there are many buzz words floating around this topic–virtualization, multi-tenancy, “XXX-as-a-Service” (Software, Infrastructure, Platform)–the basic idea of moving to a cloud-based architecture involves transferring business processes from on-premise implementations to online solutions.

Just as there are many different shapes and sizes of clouds in the sky, there are equally diverse methods for using online business solutions. In order to effectively understand your place in the sky, you must separate the myth and hype of cloud computing from the true impact online business solutions will have.

Provides Shade (from Risk)

Online business solutions may be the right answer for customers aren’t comfortable maintaining their own servers, because of security risks, cost risks, or investment risks. In traditional, on-premise configurations, customers assume the risk of mis-configurations, hardware and infrastructure malfunctions.

Moving forward, organizations are going to increasingly rely on trusted partners for the technical expertise to maintain their data infrastructures and system implementations, either on-premise or online. With the availability of various cloud services, even the most robust and complicated solution implementations can be completed in a much shorter time and with very little, if any, required investment in hardware assets by the customer.

Sometimes Clouds Rain

Even the best laid plans can sometimes meet with the unforeseen. Servers go down. Sometimes there are outages. What do you do when things go dark?

When your electricity at home goes out, the repercussions are not limited to the inconvenience of having to fumble around for a flash light. If the power stays out long enough, all the food in your freezer spoils, costing you money.

The same is true of data and systems in the cloud. Outages are not only inconvenient, but they may also incur lost revenue and other costs. When considering cloud options, be sure you understand risk of potential downtime and have plans for mitigation.

Security vs. privacy

Of course, there are security considerations when using online solutions. Cloud services are typically accessed via the internet. The server on which the document or software is hosted may be public, accessible to anyone; or it may be hosted in a private cloud, a remote server to which only you have access. Services may be hosted on physical hardware with many other clients’ data, or hardware may be dedicated to a single client.

In general, all clouds are secure as long as you partner with a reputable vendor. Your compliance requirements and available budget will affect what kind of “cloud” (public vs. private, virtualized vs. dedicated) is best for your needs. If you have specific PCI or HIPAA implications, you may need to secure your cloud more privately (at a higher cost) than those who do not have such stringent privacy considerations.

Access: When There’s Not a Cloud in the Sky

Universal access to the cloud is not guaranteed. You have to have a reliable internet connection. As any business traveler who has been frustrated by wifi access (or lack thereof) in a coffee shop, an airport, or a remote rural area, getting online to access services can sometimes be challenging. In these situations, a locally-installed solution, one that does not rely on internet access may be preferable.

Another significant trend in online services involves the rise of mobile access. Particularly in rural communities, which do not have the infrastructure to for electricity, telephone or wired network access, wireless devices (such as laptops and smart phones) can provide access to critical online solutions in the cloud. By hosting documents and software services with an online solution, field staff can be enabled to work in systems without needing to rely on having a place to “plug in.”

Continuous Innovation

While there is a lot of hype around cloud services, one of the most tangible benefits to using online business solutions is the ability of software and service companies to provide continuous innovation to their customers. Rather than disruptive upgrades, which must be implemented by a systems expert, online solutions can be updated seamlessly by solution provides. The demonstrable value of having enhancements available automatically is a feature that makes online cloud solutions an attractive option for many organizations.

 

What do Social Entrepeneurs and Sesame Street have in common?

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Blake Mycoskie of TOMS recently had appearances to both SXSW in Austin, TX and the Association of Fundraising Professionals (AFP) International Conference in Chicago.  I learned about his inspiration and motivation around his now famous TOMS brand and one-for-one movement.

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

The lively comments are also a must read.  One commentor notes a new option being considered in California which would allow the formation of a Flexible Purpose Corporation (Flex Corp.) You can read more about it in California to Allow Corporations to Blend Mission and Profit at corpgov.net.

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!

How to Achieve (and Maintain) Inbox Zero

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5 Key learnings from my quest for E-mail Nirvana

1) 4 D Rule
Do. Defer. Delegate. Delete.

2) Minimize your folders
Only need three: 1-In Progress. 2-Waiting. 3-Done.
Don’t waste time endlessly filing and organizing your email. Only permit yourself 3 primary folders. You can always go back and organize items you want to archive in the “done” folder as time permits later. (In truth, I rarely do this anymore. I usually find that the Search function is the quickest way to locate the item I need.)

3) Use rules liberally
Automatically categorize your emails with colors. One color for your boss, for example. Or another color for any email with the word “twitter” in it. (This is ACTUALLY one of my rules.) Set up rules to filter emails as they come in. File regularly expected emails, such as those from listservs or newsgroups, to be read at your leisure – this keeps the “cream” of personal emails rising to the top of your inbox.

4) Get what you give.
Send the kind of emails you would like to receive. As in life, there are always those people who like to get the last word in. If you are one of these of people – take heed – I’m not playing your game! I have too many emails in my inbox to enjoy superfluous “thank yous” and “your welcomes” and “got its!” Before hitting send, read the prospective email again. Does it add to the conversation? Is it needed? If not, reconsider.

5) Keep it brief.
Since it is the era of instant communication and instant gratification, no one, it seems, has time to read long letters anymore. Status updates, news feeds, and the pace of life in general has killed the modern reader’s ability to comprehend anything past the first 140 characters. (Are you still reading this?) If you do write a long-winded email, expect to repeat yourself because no one will have read it in the first place. If your message is too long to read on my cell phone, I probably won’t have the time or the patience to read it.