Saturday, January 26, 2008

More On Distributed Funding

As I've mentioned before, movement of everyday interactions on to the web (also known as social networking, or Web 2.0) is changing the face of philanthropy by creating a new funding model that I'm calling "Distributed Funding."

PayPal is a natural platform for this type of funding and it's recently launched a promotion designed to encourage non-profits to use it's services to generate online donations rather than the many others out there (like Kintera or JustGive). As part of its promotion, PayPal is offering $50 to organizations that generate $500 in online donations using the PayPal donate button within a certain time window.

Another organization called good2gether appears to go one step further (they have yet to launch, so their service is a little tough to evaluate) by adding search into the mix. (An aside, their tag line is "Transforming Cause Into Effect" - but there's no relationship between Cause+Effect and their company).

All of the entrepreneurial activity in the sector - from both established players and recent entrants - points to continued growth for the "distributed funding" model. Non-profit organizations that establish pathways in this new frontier now will be much better off than those that don't.

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