I was snarky yesterday about #Instagram adding a donation button. I called it the corporate take over philanthropy. And someone very smart replied that they are making it easier for people to give and that's a good thing. I was one cocktail in and decided to sleep on it 1/12
I slept on it and here are my more coherent thoughts. In the before time, nonprofits chose what platforms and channels to ask for donations. They were in the driver's seat. And they could choose which companies and partnerships were consistent with their values. 2/12
Companies that want to do business with nonprofits have a special obligation to be good actors in the world. Otherwise their clients may take their business somewhere else. That is a real economic power that nonprofits exert over their vendors and its a good thing. 3/12
But then along comes Facebook and other platforms like it. And they say, actually everyone give your money to us and we will distribute it to nonprofits. And at first it sounds great! We all like Facebook, right? And they are doing a good thing by making giving easier! 4/12
And Facebook is so generous, they are waving all transaction fees! See how good they are being to nonprofits. Its a win/win/win! 5/12
Except that nonprofits never got a say in this bargain. Facebook inserted itself between the nonprofit and the nonprofit donor. It is giving the nonprofit the money but it is already taking a big fee - donor information. 6/12
As nonprofits come to rely on those donations, thay have even less power over the situation. Facebook can change the rules tomorrow and change them to whatever they want. For nonprofits who rely on this funding, this should be terrifying. 7/12
As Facebook becomes viewed more negatively in the marketplace, nonprofits are also going to suffer. For many young people, their only nonprofit giving experience will be through Facebook. Will they begin to associate the public scandals of Facebook with giving through it? 8/12
I believe that the fundraising happening right now on Facebook is doing a lot of good. But I do not believe Facebook is a good company and it will not put nonprofits interests ahead of its own. And what bad could happen? 9/12
Facebook could end fundraising tools tomorrow. It could jack up transaction fees to 10%. It could start paying nonprofits in Facebook currency to buy ads instead of giving over the money. 10/12
And why would we believe public pressure or government regulation will prevent these things? So to wrap up, nonprofits probably have to play because Facebook is here, the funding is real, and the opportunity it real. 11/12
But the risk is real too. And nonprofits need to fight to keep their own digital properties and their own donor relationships to protect against a company like Facebook that wants nonprofits to simply outsource these things so they can control them. 12/12
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