I N S I G H T S
F O R
O N
R E S E A R C H
E V E R Y D A Y
VOL. 3, NO. 2
U S E
T H E I M PA C T O F I N F O R M AT I O N T E C H N O L O G Y O N
C I V I L S O C I E T Y : HOW WILL ONLINE INNOVATION,
PHILANTHROPY,AND VOLUNTEERISM SERVE THE COMMON GOOD?
inside
• CHARTING THE FUTURE
• IS TECHNOLOGY A
UNIFYING FORCE?
• NEW RESEARCH ON THE
IMPACT OF INFORMATION
TECHNOLOGY
AT A GLANCE
The amazing growth of information technology has implications for every
aspect of civil society and raises questions about how technology is being used
to serve public purposes. So far there is little research that reveals how
technology has and will continue to change the dynamics of civil society
and the nonprofit sector. At INDEPENDENT SECTOR’s 2001 Spring Research Forum
in March, researchers, nonprofit leaders, foundation executives, corporate
philanthropists, and technology experts from six continents gathered to
discuss new research and implications for nonprofit practice.
Among the major issues discussed were:
• The nonprofit sector is experiencing an organizational version of the “digital
divide”—the technology gap between large and small nonprofits. Hardware,
software, and technical assistance are not enough to close the divide; strategic
planning and staff time are also essential.
• The true impact the Internet will have on civil society is in “building community,”
bringing together groups of citizens who are united by shared values working for
the public good, often spanning international lines.
• Organizations that use technology well are usually marked by strong support
from the executive director, support from the board, and the presence of
a “key user” staff person.
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• The Internet enables an organization to strengthen relationships with its current
audiences as it enables targeted, fast, and consistent communication. It can also
enable nonprofits to reach out to new audiences through effective use of search
engines and “viral marketing.”
• Strategic use of technology is likely to require long-term collaborations with
for-profit and nonprofit partners.
T W O
CHARTING THE FUTURE OF NEW TECHNOLOGY:
IMPLICATIONS FOR CIVIL SOCIETY
CONTRIBUTORS: Tae Yoo, director, community development program, Cisco Systems, Inc.;
Tae Yoo: The key to success is
a well-thought-out strategy,
multi-year implementation,
and effective partners.
Marianne Becton: Technology
does not change the basic
nature of philanthropy.
A SUCCESSFUL TECHNOLOGY
PARTNERSHIP INCLUDES:
• A well-developed strategy
• Multi-year implementation
• Identification of key
technology partners
• Board and executive
director support
• Involvement of a key
“user” of technology
Mark Wilson, associate professor, Michigan State University; Trabian Shorters, president,
Technology Works for Good; and Marianne Becton, manager, external affairs, Verizon
Washington, DC Inc.
Many nonprofits and foundations are eager to understand whether emerging technologies
and the Internet have a genuine positive impact on civil society and whether nonprofits are
seizing opportunities to use technology in innovative ways to fulfill their mission.What are
the questions a nonprofit has to ask before entering into a technology partnership with
business? According to Tae Yoo, there are three questions Cisco Systems first considers
when collaborating with a nonprofit:Who is our customer in philanthropy? What are their
missions, their obstacles, and their goals? Who are their customers and constituents? “Only
then do we ask the question,‘Can technology have a positive impact on and accelerate
these organizations’ ability to fulfill their missions?’” she said. Cisco Systems then works
with the organization to develop a well-thought-out strategy with multi-year implementation
that identifies key technology partners to achieve significant impact.
Using a case study of a successful collaboration,Yoo cited Cisco’s partnership with
City Year to integrate technology throughout the organization. She noted that in the first
week City Year put its application form online for 17 to 24 year olds to join its volunteering
program, it experienced a 250-percent increase in the number of applications received.
The organization estimates that using the Internet will save $1 million on training costs over
the next five years.
Trabian Shorters identified other factors that constitute the successful use of technology
in a nonprofit organization.These include strong support from the executive director,
support from the board, and the presence of a “key user”—a staff member, who might
or might not be responsible for managing technology in an organization, but who is seen
as the person to approach with questions.
Marianne Becton encouraged nonprofits to develop strategic alliances with companies
and foundations so that both can benefit from a long-term relationship. She cautioned,
however, that technology should be seen as a productivity-enhancing tool that “does not
change the nature of philanthropy.”Technology should enhance a charity’s fundraising
by automating routine tasks, leaving staff more time to build relationships with donors
and beneficiaries.
T H R E E
William Galston: The Internet
can encourage more intense,
narrowly focused communities.
Vinay Bhagat: “Viral marketing”
is the power of word-of-mouth
marketing taken online.
CREATING VIBRANT SPACES FOR CIVIL
SOCIETY ORGANIZATIONS ON THE
INTERNET AFTER E-COMMERCE
CONTRIBUTORS: William Galston, professor and director,
Institute for Philosophy and Public Policy, University of
Maryland; Larry Kirkman, president, Benton Foundation;
Vinay Bhagat, CEO, Convio; Edward Lang, vice president,
strategic partnerships and technology, CVENT; and
Howard Tuckman, dean, Faculty of Management,
Management Education Center, Rutgers University
As e-commerce and commercialism of the Internet expands,
vibrant spaces for civil society organizations may become
more difficult to develop and make visible on the Internet,
according to William Galston. Researchers noted that
technology has the capacity to bring volunteers and
advocates together from all over the world around
a common cause.While the Internet can encourage
discussion and advocacy through “online” communities,
there is a danger that these communities can create
sealed-off, isolated groups that narrow democratic
deliberation.
Galston warned that the kinds of voluntary communities
sparked by the Internet “have a tendency to organize
around a narrow range of interests,” rather than a concern
NEW TERMS
Viral Marketing—Internet-based
word-of-mouth marketing. Some
websites are now encouraging
loyal donors and advocates to
tell like-minded friends by entering their email addresses and
sending a personalized message. These people, in turn,
tell more friends, and, like
a virus, the message reaches
a large number of new potential
donors or advocates quickly
and inexpensively. An example
is Planned Parenthood’s recent
President’s Day campaign, which
raised more than $500,000
online, with 90 percent of
the contributions coming
from people who had never
donated before.
for the common good.
“Homogeneous communities tend to intensify agreement within the community
around more and more
extreme forms of the
agreement that brought
the members together in
the first place,” he said.
Galston said it is a mistake “to believe that if we
have empowered groups
to speak, we have done
everything that is necessary
in order to build a vibrant
civil space for democracy.”
ASP—A new way to use and pay
He said the Internet’s
for software. These so-called
architecture is egalitarian,
“Application Service Providers”
but not necessarily
offer donor database, website
democratic since it is
content management, and other
sophisticated software systems
often dominated by
for a monthly fee. The software
corporate sites. To
and data reside on the ASP’s
encourage greater levels
computers, and the organization
of citizen engagement
accesses it through a secure
Internet connection. An example
in democracy, Galston
is United Jewish Community’s
advocates the development
FedWeb, which offers UJC’s
of “dot-civ” Internet domains
local federations the ability to
easily accept online donations,
that would facilitate the
register volunteers, and host
discussion and advocacy
discussions.
of citizens around societal
issues.
Larry Kirkman said that the Internet has created
“an appetite for trusted information intermediaries”
and that nonprofits can help fill that role by providing
intermediary websites that aggregate nonprofit knowledge.
With commercial search engines only covering about 20
percent of the Internet he believes that “nonprofits must
think of themselves as information sources in a new way.”
F O U R
BUILDING COMMUNITIES:
IS TECHNOLOGY A UNIFYING FORCE?
CONTRIBUTORS: David Eisner, vice president, corporate
relations, AOL Time Warner, and senior vice president,
AOL Time Warner Foundation; Mike Whitlam, chief
executive, Mentor Foundation; James Austin, professor,
Initiative on Social Enterprise, Harvard Business School;
and Simon Rogers, deputy editor, Guardian Unlimited
Technology can be used to mobilize people globally
around a common cause to achieve world-changing results
far beyond the promise of enabling nonprofit organizations to perform important functions, such as fundraising
and recruiting volunteers more effectively.
In contrast to some of the concerns expressed by
William Galston, David Eisner asserted that “the truly
transformative impact that the Internet will have
on nonprofits is specifically in the area of building
community.” James Austin said that technology is
redefining “community” since it is no longer focused
on geography but on other commonalities that can join
people across cyberspace. He suggested a new definition
of community:“a group of people bound together by
shared activities, purpose, and values.”
According to Eisner, four trends are critical to
understanding the power of the Internet in building
communities:
• More people will find it easier to form more affiliations
as a result of the Internet.
• Asking individuals to give will get easier, because
information and action can now be integrated.
For example, donors could read about the earthquake
in India and then give and volunteer at the same time
using the Internet.
• News, fundraising, online communities, and ways to
help, which Eisner termed the “cycle of engagement,”
will become frictionless, since the Internet enables
people to learn about a problem and take action
immediately and seamlessly.
• Through networking, people will be able to work
together more closely in high-quality information
sharing and learning communities.
James Austin: Community is
no longer focused just on
geography.
David Eisner: The truly transformative power of the Internet is
in building community.
Online interaction offers a powerful organizational
tool for advocacy campaigns. “As a communications tool,
as a campaigning tool, it’s incredible,” said Mike Whitlam.
But this powerful connection cannot become reality
unless nonprofit organizations have the capacity to use
technology. “What’s really important is even where grants
are not related to technology, grantmakers need to take
an interest in their grantees’ technological proficiency
in the same way that they take an interest in their staff
capability, their management, and their financial credibility,” Eisner said.
Turning to current trends in e-philanthropy, Austin
asserted that, just like the Internet business world, the
e-philanthropy community—both for-profit and nonprofit—is suffering labor pains.“There will be more
closures and consolidation, but the space will not go
away,”Austin said.“Internet technology has irreversibly
changed the philanthropic capital market.”
Austin identified four forces as the critical shapers
of the new technology-based e-philanthropy community:
•
•
•
•
economic pressures
mistrust
clashing cultures
technology readiness
“The potential is enormous,” he concluded.“But its
realization will depend fundamentally on the willingness
and the ability of nonprofits and e-philanthropy enterprises to forge new and mutually beneficial relationships
rooted in shared mission and purpose.”
F I V E
Elizabeth Ramrayka: Does the
Internet trade intimacy for
efficiency?
Nearly 300 researchers, practitioners, and others from six continents gathered at the INDEPENDENT SECTOR
Spring Research Forum, March 15-16, 2001, in Washington, DC, to discuss the impact of the Internet
on civil society.
Nick Allen: The Internet offers
opportunities for national-local
collaboration.
AT THE SPEED OF LIGHT: ONLINE PHILANTHROPY AND
RESOURCES SERVING THE COMMON GOOD
CONTRIBUTORS: Randi Shade, co-founder, Charitygift; Nick Allen, president,
Donordigital; Jay Backstrand, CEO, ImpactOnline; Putnam Barber, president,
Evergreen State Society; and Elizabeth Ramrayka, editor, Voluntary Sector
The Internet offers important resources that serve nonprofits, but experts warned
that organizations must take a strategic, collaborative approach during these volatile,
fast-moving times. Jay Backstrand remarked that consolidation is leading to collaboration that will be good for the nonprofit sector. According to Nick Allen, large national
nonprofits such as United Jewish Communities and Girl Scouts of the USA are investing
in tools to enable their local partners to easily build effective websites. These sites offer
consistent branding, advocacy resources, and the ability to attract contributions and
volunteers.
What the e-business community is now experiencing is that the rules of successfully
running a business are the same as they’ve ever been, according to Randi Shade. She
described her experience in launching Charitygift, a for-profit company to enable
people to give contributions to charity as gifts. She initially received venture capital
funds, and then her company was bought by another dot-com, CharitableWay.
However, the company could not grow the business fast enough to provide the
return the investors demanded, and the company shut down. Shade noted that the
fundamental tools for running a sustainable business go far beyond a good idea and
the latest technology. Having a market and long-term adequate investment are more
important keys to success, she concluded.
S I X
FOR MORE INFORMATION
The Impact of Information
Technology on Civil Society:
How Will Online Innovation,
Philanthropy, and Volunteerism
Serve the Common Good?
Working Papers
NEW RESEARCH ON THE IMPACT
OF INFORMATION TECHNOLOGY
Forty-six researchers from the United States, China, Korea,
the Philippines, the United Kingdom, Brazil, Israel, Mexico,
and other countries reported new research on how
information technology has helped nonprofits and civil
society. For example:
• Junki Kim of Seoul National University reported that
a coalition of 900 Korean civil society organizations
used electronic advocacy as part of an unprecedented
campaign to target 86 corrupt politicians for defeat in
2000; they defeated 59.
Laxmi Ramasubramanian of the
University of New England presented her paper, Where’s the
Power in Empowerment? How
Community-Based Organizations
Shape Social Policy.
• Michele Waslin of the University of Notre Dame described the way human rights
organizations in Mexico have used the Internet to publicize their concerns.
• Stephanie Creaturo of NPower NY discussed how some nonprofits have successfully
used IT training programs to improve the job skills of low-income workers.
• Linda Nemec and Brian Kroneman of the Citizens Democracy Corps reported that
the Internet has made it possible for more full-time business people to use their
expertise to help counterparts in developing countries learn how to survive in
a market-based and increasingly competitive world economy.
But researchers also found major problems involving technology and nonprofits.The
first is the organizational version of the “digital divide”—the technology gap between
large and small nonprofits.
Jo Anne Schneider of Indiana University of Pennsylvania, reporting on several small,
minority-based nonprofits in Kenosha,Wisconsin, noted that “simply providing technology and technical assistance to small, community-based organizations is insufficient
to close the digital divide.The most essential issue for these organizations is staff
time—and using information technology adds an additional drain to already overcommitted staff.”
Finally, Maria Papadakis of Virginia Polytechnic Institute and State University said,
“One issue that is often neglected in technology projects and programs is the
opportunity cost of these funds. In other words, what projects and programs are
being given up for technology, and might these alternatives achieve the same results
(or better) for less money?”
A collection of 28 working
papers from researchers
and practitioners studying
technology and its effects on
civil society.
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papers FREE at
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This publication is made
possible through support of
the INDEPENDENT SECTOR Research
Program by the Ford Foundation,
the Lilly Endowment, Inc., and
other donors. IS would also like
to recognize the sponsors of the
2001 Spring Research Forum:
Blackbaud, Inc., Convio, Fidelity
Investments Charitable Gift
Fund, KindMark, Verizon
Foundation, and Westat.
INDEPENDENT SECTOR
RESEARCH PROGRAM
INDEPENDENT SECTOR is a nonprofit, nonpartisan coalition of more than
700 national nonprofit organizations, foundations, and corporate
philanthropy programs, collectively representing tens of thousands of
charitable groups in every state across the nation. Its mission is to
promote, strengthen, and advance the nonprofit and philanthropic
community to foster private initiative for the public good.
INDEPENDENT SECTOR’s Research Program works to build the research
necessary to accurately define, chart, and understand the nonprofit
sector and ways it can be of greatest service to society. Signature
projects include the Nonprofit Almanac, Giving and Volunteering in the
United States, and the Measures Project.
© INDEPENDENT SECTOR, ISSN #1526-8381
www.IndependentSector.org
SUMMER 2001