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Working with Dot-coms: Guidelines for Non-Profit Organizations
By Melanie Lovering
July 4, 2000
The pace of technology, combined with the emergence of business-based enterprises eager for a piece of the philanthropic pie, are placing the third sector into a bit of a tailspin. Aside from the challenge of keeping pace with technological advances, the sector is now faced with the added pressure of wading through a myriad of on-line fundraising opportunities.
Since many lack the financial and human resources required to do it alone, more non-profits are considering pairing up with dot-coms to keep up the pace and not lose out on what appears to be a potential windfall of on-line donations.
Overwhelmed? Don't be. The National Society of Fund Raising Executives (NSFRE) is actively monitoring the issues as they relate to this hot topic. Last week the association presented an audioconference entitled "Working with Dot-Com's: Guidelines for Non-Profit Organizations."
Michael Johnston, president of Hewitt & Johnston Consultants and Walter Sczudlo, vice president for public affairs and general counsel for the NSFRE offered listeners some terrific advice on the opportunities as well as the potential pitfalls of this new fundraising medium. Presented here are only a few highlights of their presentation.
Clearly, the internet appeals to the public. But there are specific reasons why the internet appeals to the donor public. First and foremost, it provides anonymity and allows the donor to feel more in control since it places less pressure on them.

The tide is moving quickly
Unfortunately, the non-profit sector is lagging behind. Websites are starting to pop up that provide the same kind of information and services of a non-profit organization, but are commercially based. Rest assured, the presenters suggested, if you don't take your charity on-line soon, someone else will do it soon and may possibly do it better.
A laundry list of issues and concerns were raised during the presentation, including donor privacy and stewardship, security of on-line donations, proper and swift receipting, accountability for compliance with government regulations, disclosure of fees, caps on fees, and the negotiation of privacy policies among others.
Chances are, listeners were told, you will be presented with a standardized contract. "Push back, negotiate," urged Michael Johnston, and be sure to have your own legal representation. Don't overlook the background of the firm itself or the people who run the firm, and consider whether or not they subscribe to the NSFRE Code of Ethics.

Be mindful of maintaining control of your brand
Equally important and before you proceed with any new relationship, carefully consider the full impact of it on your supporters. Compare the value of what you are getting compared to what you are giving up. Be sure to clearly outline parameters concerning the use of your organization's logo, as well as any content related to your cause.
Despite the hornet's nest of issues that could potentially cloud these exciting new opportunities, there is a silver lining: the internet is efficient, fast, responsive and will lead to greater sector accountability. The internet offers non-profits the opportunity to further build their credibility, awareness and brand. It is even advancing philanthropy in developing nations where opportunities to donate on-line donating are being eagerly embraced.
Increased competition between dot-coms is creating a more favourable atmosphere for non-profits when it comes to negotiating agreements -- finding the right balance will be the next challenge faced by non-profits and their dot-com partners.
If your organization is at any stage of the negotiation process, or if you are considering a partnership, be sure to visit Michael Johnston's website for copies of the handouts and other useful information related to this issue at http://www.hjc.on.ca/matrix/intro.htm.
This article is reprinted with permission from the Summer 2000 issue of the NSFRE Greater Toronto Chapter newsletter. Melanie Lovering is Director of Sales at CharityVillage.com. Reach her at melanielovering@charityvillage.com.