As if the nonprofits sector isn't fragmented and competitive enough...
Anyone involved in the nonprofit sector should take note of this article in TechCrunch.
http://techcrunch.com/2010/07/18/the-many-bottom-lines-of-businesses/
It discusess the existence and growth of 2 new types of legal structures for corporations; the B Corporation (http://www.bcorporation.net/) and the Low-Profit LLC (http://en.wikipedia.org/wiki/L3C).
According to the article, "B Corps now include over 300 companies representing $1.1B in revenue, including Amazon competitor Better World Books
and GoodGuide, a site that rates consumer products for safety, environmental impact, and social responsibility."
Currently, the only thing holding these new types of companies back is the absence of a standardized way to evaluate these companies. Once one method emerges, then you can expect that companies and investors can engage in newly formed public markets and exchanges - a social stock exchange if you will, where the public could invest and expect a real return.
Could this be the death knell for the 501(c)(3)? Unlike the traditional nonprofit, B corps and Low-profit LLC's may be better positioned to obtain large investments because they can deliver a monetary and social ROI. And what major donor wouldn't like to know that they could potentially make their money back while doing some good?
More competition is always a good thing. It will be interesting to see how this shakes out. But the news of these changes is not insignificant.
http://www.firstgiving.com/Riding4Renal_CircaRigel
"Due to delays in FirstGiving forwarding funds..."
YIKES.
The problem with legacy systems is that it's really tough to change anything. There is absolutely no good reason for FirstGiving or any other vendor to have a nonprofit's donations before sending them the money. None, whatsoever. It's like having your paychecks mailed to your neighbor to deposit into your bank account instead of using direct deposit.
Choose an online fundraising software where the money goes from the donor, to your payment gateway, and then to your bank. No one else needs to be involved in theis process. Certainly not a software company.
Inserting a software company into that process, puts your money and cash flow at risk. Look, software companies are cubicles and messy desks filled by geeks trying to make it through the day. I should know. The chances of them screwing something up and causing delays in your funding. Highly, highly likely.
The moral of the story? Choose an online fundraising software that connects directly to your own payment gateway so your money will be in your bank account in a timely fashion. Eliminate the software middlemen, reduce fees, and reduce errors.
Look at one of Kintera's Friends Asking Friends sites is like going back in time to the mid 90's.
Look at these screenshots:
Seriously?
The fonts, the graphics, the layout. It's all so antiquated.
Where are the Social Media links?
There's a scrolling marquee on the page. Yes, I said scrolling marquee.
This is a premium vendor. Organizations pay top dollar for this service!? Buying Kintera's Friends Asking Friends is like paying for a Mercedes and getting a 1976 Oldsmobile.
Wow. If nothing else - Friends Asking Friends has made time travel possible. Gotta go. Melrose Place will be on in a bit.
