The Macrosite for News, Analysis and Opinion about the Future of the Internet
Nicole Ferraro

Online Philanthropy: The Results

Written by Nicole Ferraro
2/4/2008 6 comments
no ratings
DISCUSS   Digg   Del.icio.us   Reddit   Email This   TWEET THIS

A poll last week surveying Internet Evolution readers on their online philanthropy habits has produced some interesting results, which give a nod to the side of the room suggesting we do not yet use the Web to its fullest potential.

The poll was devised to supplement our Big Report -- The Internet and the Developing World -- which outlines challenges developing nations face in adopting Internet-run technologies. The report also looks at several Web 2.0 philanthropy sites (RealityCharity, Firstgiving, Kiva, MicroPlace) attempting to bridge the gap between the developed and underdeveloped worlds via transparent, interactive giving portals.

More than 400 readers have weighed in thus far, and, based on our results, a majority of Internet users are not taking advantage of these technologies. Additionally, most find giving to the developing world via the Internet is "way too risky":

Dane Bodien Low, a Canadian student using the Firstgiving portal to raise funds for NPO Room to Read, tells me that it is due to skepticism/paranoia that we are not yet seeing the full potential of online philanthropy.

"The only downside with working with online fundraisers is that people are hesitant to donate online using their credit card," he says. Low, who has raised $5,571 toward his $17,000 goal thus far, is optimistic that Web 2.0 philanthropy will gain grassroots support as people familiarize themselves with the ease of giving online. "It really is just going to come down to exposing to the public just how easy Web 2.0 has made it for people to make a massive difference through mass collaboration."

In addition to feeling uneasy about where their money is going, some potential donors simply feel online giving isn't satisfying. According to IQCrewer rmwilliamsC2C, "The point is online donations can [be] cold and impersonal. It might sound hokey [but] I think folks like to hear someone say 'thanks' when they call into a local or national fund raising organization."

While this may be part of the problem, sites like RealityCharity and Kiva are making efforts to personalize online giving by implementing social networking features and allowing fundraisers to post photos, back stories, and updates, thus generating a sense of connectedness for donors. These sites also combat the trust issue by posting constant updates of funds raised/loaned.

Regardless, just like anything else brand new, online philanthropy will have to prove itself to the say nayers and the archaic types who've developed a fondness for licking envelopes and an aversion to pointing and clicking.

In the meantime, take our new poll, whydontcha: Tools of the Web. It's wholly unrelated to this topic and is less likely to make you feel bad about yourselves.

— Nicole Ferraro, Site Editor, Internet Evolution

DISCUSS   Digg   Del.icio.us   Reddit   Email This
Current display:       newest comments first       display in chronological order
Brian Houghtaling
Rank: Cave Painter
Tuesday February 5, 2008 12:28:13 PM
no ratings

Nicole, Many thanks for your excellent research in this area.  This information has been very helpful in my work at a large not-for-profit.

I’ve been impressed with Kiva’s capabilities both in their innovative use of Web 2.0 features and especially with their use of PayPal to navigate around credit card concerns.

Using PayPal probably saves Kiva a lot of hassle and money, especially in regards to PCI DSS.  Most anyone who would be a Kiva lender would have a PayPal account and be comfortable using it.  This seems like a masterstroke for both Kiva and PayPal – the partnership relationship is shown on Kiva’s site and is posted below.

The Partnership: PayPal is a proud supporter of Kiva.org's mission and organization. As an official partner, PayPal provides Kiva.org with access to technology, research, workplace resources and employee volunteers. Additionally, PayPal provides Kiva.org with free payment processing - Kiva.org's largest variable cost - thus enabling 100% of the loaned funds to reach entrepreneurs in developing countries. Kiva.org uses PayPal's innovative payment solutions to securely and seamlessly distribute funds around the globe.

- Brian Houghtaling

splowman
IQ Crew
Tuesday February 5, 2008 11:25:14 AM
no ratings

 

I think many of the reservations regarding online giving are from the various forms of spam we get about helping some child with a story about missing legs, limbs, families or other such sob stories that request money. While some may be true, the stories themselves are utterly unbelievable and almost certainly, in those situations, the money never gets to where it is supposedly going to go.

Also, I think that people are sometimes lazy. If I'm going to donate money, I don't want to go through and research charities to find out if my money is going to be used. I'd much rather donate to a charity I know is reputable and just be done with it.

Jasper Sluijs
Researcher
Monday February 4, 2008 8:53:11 PM
no ratings
Hi Nicole and others,

The outcome of your latest pole is again quite interesting––it reveals the reservations many people have regarding online philanthropy. What caught my attention though during the poll and the reactions it catalyzed, is that the focus was very much on donating to 3rd world (and related) projects and the apparent dangers here.

Fundraising projects closer to home, for Wikipedia and Creative Commons for instance, have been rather successful. I think that the mere fact that these efforts are more 'palpable' to us doesn't cover the whole picture. This because especially the aforementioned examples made a great deal out of giving donors an idea of where their money actually went, and frequently sent out updates about the latest developments. Moreover, donors were credited and treated in a personal way. So maybe this strategy might be helpful for other causes as well––although I do not want to underestimate the negative effect of distant initiatives on people's trust and generosity.
Nicole Ferraro
IQ Crew
Monday February 4, 2008 4:10:54 PM
no ratings

TCC and Symant,

Good points. Users are absolutely concerned about fraud and worried their dollars are not going to those in need. For this reason, however, many charity evaluator sites have sprung up on the Web. There's a list of them in the Big Report which gives a brief outline of how each one operates and what services it provides. These sites are here to let you know which charities/NPOs operate appropriately and which ones take a big chunk of your donations for overhead/admin costs, fancy functions, etc. Intelligent Giving, for example, rates the U.K.'s largest charities, using a scoring system to evaluate the transparency of their annual reports. A similar site in the U.S. which evaluates annual reports to assess financial health of U.S.-based charities is Charity Navigator.

TCC
Rank: Cave Painter
Monday February 4, 2008 3:58:20 PM
no ratings

I remember when 9/11 happened there were many websites that were taking donations from people over the internet and some of those websites ended up just ripping people off and not giving any of the donations to 9/11 charities. That would be my biggest concern with donating over the interent. Other than that I would have no issue with it.

experiences
IQ Crew
Monday February 4, 2008 3:49:32 PM
no ratings

Hi Nicole,

Your post did address the issue of comfort of using online credit cards and the idea that people want to be thanked.

The thought that came to mind was

1. Maybe there is a concern with regard to end use of funds collected. Does the charity provide audited reports on usage of funds. "Did the money i sent help the people who really need it"

2. Lack of Independent charity rating systems  and also awareness of the charity could be an issue. The related issue is how are some of the older charities such as CRY using the internet and how do they compare with some of the charities mentioned in the report.

3. Personal contact with people who benefited is also important to some people and im not sure the Internet medium is useful there, for now atleast.

Syamant

 

 

The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
previous posts from Editor's Blog
Nicole Ferraro
Nicole Ferraro   2/9/2010   2 comments
We hope you can tune in for an IE Radio interview today with a true industry innovator, Jeff Jonas, chief scientist at IBM. We're talking to Jonas today at 3:00 p.m. ET. Do. Not. Miss. It.
Nicole Ferraro
Apple Inc. (Nasdaq: AAPL)'s recent unveiling of its "magical" iPad may have fanboys counting the days until March, but if a recent poll on Internet Evolution is any indication, not everyone is buying into the hype.
Nicole Ferraro
We do a lot of grousing here on Internet Evolution, and usually for good reason, considering the amount of nonsense that keeps this industry afloat on its cloud of hot steamy air!!!! But... we can still happily acknowledge those titans who have succeeded in leading the way or paving new ground in their respective fields and, in turn, give credit when it is well deserved.
Nicole Ferraro
The Wall Street Journal reports that the National Security Agency (NSA) has been working with Google (Nasdaq: GOOG) to look into the attacks on its Chinese servers.
Nicole Ferraro
Last night PBS aired a Frontline documentary called "Digital Nation" that took a look at the ways in which the Internet is changing the way we live.
5
of
IETV: the thinkerNet on film
5
of
2pm EST
Tue
Feb 23rd
2pm EST
Thu
Mar 4th
3pm EST
Tue
Mar 9th
an IBM information resource
sponsored content
big blue blog
Todd Watson
IBM is announcing today the first of its Power7 processor-based systems and the Power7 processor itself at an event in NYC.
white papers & case studies
an IBM information resource
sponsored content
Smarter Collaboration: How to Thrive in a Challenging Business Environment
Market conditions are changing faster than ever, and organizations need to improve their agility and adaptability in order to provide better service and improve processes. The ability to work with customers, business partners, and employees as effectively as possible - while at the same time holding down costs - is a key to success.

READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE!

REGISTER HERE
Wanted! Site Moderators
Internet Evolution is looking for a handful of readers to help moderate the message boards on our site – as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?

Please email: moderators@internetevolution.com
CMP Media LLC
Internet Evolution – not for thickies
Congress Hits the Snooze Button With China
Ira Winkler
In his
recent Congressional testimony, Dennis Blair, the U.S. director of national intelligence, stated that the U.S. is "severely threatened" by cyber attacks and that the recent Google (Nasdaq: GOOG) attacks should serve as a wake-up call.

CLICK FOR MORE
Rob Salkowitz
The Use & Abuse of BI

2|1|10   |   2:19   |   4 comments


Data mining of social networks means people might face unforeseen consequences as a result of their seemingly innocuous personal choices and associations.
Steve Saunders' Outernet
The Death of Anonymity: Part 3

Part 3 of 4   |  
See complete series
10|28|09   |   1:35   |   4 comments


What can users today do to protect their online privacy? The simplest and most obvious option is to not use the Internet – at all. However, once all digital information is consolidated over the Internet, trying to protect digital identity by simply unplugging from the Internet becomes impossible – a fact that has manifest implications for civil liberties, Saunders says.
Steve Saunders' Outernet
The Death of Anonymity: Part 2

Part 2 of 4   |  
See complete series
10|27|09   |   2:08   |   8 comments


By 2011 the number of Internet-connected sensors will exceed 1 trillion, making your chances of doing anything or going anywhere unnoticed pretty much zero. Saunders talks about how the 'sensortization' of the Internet is eliminating the traditional divide between online and offline populations.
Steve Saunders' Outernet
The Death of Anonymity: Part 1

Part 1 of 4   |  
See complete series
10|26|09   |   1:29   |   13 comments


The 20th Century Internet was characterized by the ability to interact with other people and information on the Internet largely without anyone knowing who you were. The Internet of this century, conversely, will be defined by identity. Saunders explains how Internet users are unwittingly contributing to the demise of the anonymous Internet.
The Incredible Hultquist
Social Networks & Hiring Pitfalls

10|16|09   |   2:16   |   5 comments


More companies are trolling social networks to find and vet potential job candidates. Beware the pitfalls of blurring the line between personal and professional lives.
Steve Saunders' Outernet
Welcome to 2029

10|6|09   |   2:01   |   4 comments


It is 20 years since the invention of the World Wide Web, and the Internet has changed beyond recognition since then. Steve Saunders peers into the future to predict what the Web will look like in another 20 years time – and he doesn’t like what he sees.
Steve Saunders' Outernet
Internet Evolution Goes Soccer Crazy

1|28|10   |     |   14 comments


Steve Saunders visits the South African Consulate in New York for a party celebrating not one, but two (2!) major football (soccer!) tournies.
Sweeney Blog
Hitching Your Wagon to Haitian Relief

1|26|10   |   2:07   |   6 comments


Celebrities – both real and fake – recognize an opportunity for publicity when they see one.
Reiter's Block
Beware Blippy's Credit Card Service!

1|25|10   |   3:07   |   13 comments


Some of the "cool" people are testing a new Web service: Blippy. It could be a great data source for corporations to glean info about customers’ credit card purchases. But it has all sorts of possible privacy and security problems. Buyer beware!
what.the.ferraro
More Pitiful Privacy from Facebook

12|16|09   |   02:08   |   2 comments


Facebook's new privacy controls just don’t cut it with little miss 'Air Quotes.'
Lee H. Berke
The Decline & Fall of Broadcast Television

2|9|10   |   1:00   |   No comments


Want to know the future of broadcast television? Take a look at broadcast radio’s past.
Tom Nolle
Everything New Is Old Again

2|9|10   |   2:13   |   6 comments


Research shows that the youth of today like Facebook – but not blogging or Twitter. Does that mean Facebook has won, or just that it's not yet out of favor? Will all the services we see today fade into Ovaltine-or-Wheaties status in just a few years?
what.the.ferraro
Email Marketing Gets Desperate

2|8|10   |   2:31   |   4 comments


Promotional emails will use just about anything timely to get people to buy things. Seriously, anything.
Steve Saunders' Outernet
America, Truck Yeah!

2|8|10   |   1:42   |   5 comments


Steve likes his new Dodge Ram 1500, but hates Chrysler's Web non-sales strategy. Rant on, li'l buddy.
what.the.ferraro
Twits Go Wild for Resignation Tweet

2|5|10   |   1:48   |   4 comments


Jonathan Schwartz is the first Fortune 200 CEO to resign via Tweet. Can he walk on water, too?
Full Nelson
Go With the FLO, Part 2

Part 2 of 2   |  
See complete series
2|5|10   |   2:17   |   3 comments


Fritz and his sweater continue their review of Qualcomm's FLO TV.
Singer at C-Level
Goldilocks & the Data Center

2|4|10   |   3:39   |   2 comments


What kinds of companies are doing the most innovation in the data center? Turns out it's midtier enterprises that are taking the "Just Right" approach.
Full Nelson
Go With the FLO, Part 1

Part of 2   |  
See complete series
2|4|10   |   2:39   |   1 comment


Qualcomm's FLO TV gizmo streams live TV shows. Tragically, they include the O'Reilly Factor
Eurotrash
High & Dry in Barcelona

2|3|10   |   1:08   |   No comments


Ray’s heading to Barcelona for the Mobile World Congress, and he’s not happy about it, the miserable git.
Sweeney Blog
No Sex, Please... It's the Super Bowl

2|3|10   |   2:24   |   2 comments


The Super Bowl ads that CBS rejected are turning up online, generating lots of attention but zero revenue for the broadcaster.