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Month December 2008

Micro-giving on the Huff Po

Ran the following essay on the Huff Po over xmas. Piece by Ken Lerer and I on what we are learning from the charity water drive and the possibilities of micro-giving.

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Here is the article from the Huff Post:

Micro-Giving: A New Era in Fundraising

Thirty years ago, a young economics professor named Muhammad Yunus started a new kind of banking in Bangladesh — tiny loans to small entrepreneurs. Few thought these dreamers in a dirt-poor country would ever repay. But most did — and in 2006, Yunus won the Nobel Peace Prize.

Micro-lending has changed lives, built communities and created unlikely leaders.

Now a wave of friends and “loose ties” within the social media community are bringing the micro-lending concept and applying it to charitable giving.

Call it “Micro-giving”.

Late last week Laura Fitton of Pistachio Consulting launched a new kind of fundraising drive: an effort to raise $25,000 for a nonprofit called charity: water, a cause that works to bring clean, safe water to developing countries. She chose Twitter as her platform for financial pledges. And because she was aware of the bleak economy bearing down on her friends, she didn’t want to lean on them for significant contributions. “I asked for $25,000,” she says, “which would be just $2 for each reader I have on Twitter.”

In four days, @wellwishes had raised over $5,000. Average pledge size has been $8.50, the median is $2. And the beneficiary has taken notice. “I see micro-giving as the next stage of online fund raising,” says Scott Harrison, founder and president of charity: water. “The idea of thousands of $2 gifts adding up to wells in Africa that impact thousands of lives is something everybody can get behind.”

Though reminiscent of the Obama campaign’s decentralized funding, @wellwishes is a whole new model because it incorporates convenient, tiny donations made right on Twitter — the word-of-mouth powered social network and microblogging platform. Using payment service from a company called Tipjoy, it’s both simple and social to give. Your pledge shows up on Twitter as “p $2 @wellwishes for charity: water to save lives” (This is shorthand for “pay $2 to the Charity organization whose user name on Twitter is wellwishes.”) And that message goes — instantly — to all of the people who follow you on Twitter.

Laura Fitton (her Twitter user name is Pistachio) kicked off the campaign with an announcement of the experiment:

p $2 @wellwishes just to practice my hand at using micropayments on @tipjoy

In a later Tweet, she made her appeal:

I want something TOTALLY insane for Christmas: 12,500 people each to donate $2 for clean water @wellwishes.

And many did. Okay, these are pledges, not donations. But just as poor people pay their micro-loans, so micro-donors make good on their pledges — so far, an astonishing 86% have come through.

And then there’s the fact that the request gets personalized as people pass it on. Some add just a phrase: “very cool”. Others say the same thing, but with more characters: “small bits via Twitter + big audience = good xmas”.

The message is as important as the medium — using Twitter/Tipjoy, everyone who participates is both a donor and a broadcaster.

That suggests we’re entering a new era in fundraising and perhaps other social/political causes. What’s new? Virtual tribes — networks of caring people with more commitment than cash.

And that’s what excites us about micro-giving: It takes so little. You might not have much to spare, but you’ve got a penny jar — and we all know that if you reach in and remove a handful of change, you’ll feel no pain. What’s great about the new, frictionless online giving we’re testing here is that, if you’ve got a good cause, you no longer need to spend a fortune on real-world marketing. Online, with word of mouth and simple technology, pennies can become serious money.

Muhammad Yunus says that we can create a poverty-free world “if we collectively believe in it.” That’s a lot of belief. It will be easier to create that world if good causes have adequate funding — and if they can get that funding a few pennies at a time.

That, it seems to us, is a “very cool” idea. So give it a whirl. Give here and support charity: water, and be among the first to try what we hope is a new way to give online — micro-giving. For which you get large thanks.

disclosure note: betaworks is an investor in Twitter and Tipjoy. Tipjoy waived all fees for this effort, and, with betaworks, is making a matching gift.

We are making solid progress towards the goal. You can see a running total here.

An experiment in Microfunding and new forms of giving

Late last week we kicked off a drive to raise $25,000 for http://www.charitywater.org/ — a non-profit that brings clean and safe drinking water to people in developing nations. We launched this over Twitter — in partnership with Pistachio and Tipjoy.

In the first 24 hrs we raised $944 from 144 people. As of today — Saturday — we have pledges of $1400 from 213 people, a total of about $2600. This is amazing, the money is going to have a very real impact on people’s lives. Unclean water is the cause of about 80% of disease. 43,000 people died last week from bad drinking water. $2600 in 48 hours is an amazing start, all raised over the Twitter platform. Of the $2600 about half of it was raised via Tipjoy. Here is a live update of the pledges to Charity: Water (@Wellwishes) via tipjoy, and the payment (vs. pledge) rate.

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You can add a $2 gift right here:

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In terms the approach it feels like we are scratching on something radically new here. It intersects with a set of trends I am fascinated by: dynamic community formation and participation, the now web or real time cloud and micro-lending or in this case micro-giving. Laura Fitton (@Pistachio) has written about this before, as have others — its giving me a lot to think about as we head into the Christmas season and the snow falls here. A payment rate of 83% is astoundingly high.

We also put together a little video of the launch of this effort. Laura is testing, Chartbeat, an un-released product from betaworks — it can track the traffic surge from Twitter to Larura’s blog post. If anyone wonders the effects of Twitter this little video says a lot. Watch what happens 20 seconds in.

Laura had a technical reaction to the video:

holy AWESOMENESS.

chartbeat is going to be INSANELY valuable. that is SO cool.

Relative search

Its been a while since I have posted on my blog. There has been a lot of work to do and i’m in the process of consolidating this blog with my tumblog. More to come but for now a quick post on Google Search Wiki.

I have been using it for the past few weeks on and i finally figured out why it annoys me way more than the average beta product — I have philosophically issues with this product, its inconsistent with what I want from a Google search.

I have become accustomed to Google representing a canonical point of view. Now all of a sudden Google has become a swamp of relativity. I have almost a physical response to seeing the arrows up and down on the results. Its fascinating that they would try this — after years of debate on the merits of personalized search — im surprised and watching closely, but now from afar — I wish http://www.customizegoogle.com/ would add a switch to turn this off.

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