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August 28, 2009 7:41 AM PDT

Nonprofits next to test Facebook payment platform

by Caroline McCarthy
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NEW YORK--Four nonprofit organizations will be participating in a test of Facebook's "credits" platform, marketing and outreach director Randi Zuckerberg said on Friday morning at the Social Good Conference presented by social-media blog Mashable.

"I just received confirmation yesterday that...we're going to be reopening up charity gifts in the Gift Shop," said Zuckerberg (who is, yes, the sister of Facebook founder Mark Zuckerberg). "We are exploring ways for developers to use the Gift Shop to offer...virtual, real, and charity gifts."

This will be rolling out next week with four test partners--Project Red, Kiva, Toms Shoes (which is not a non-profit, but a for-profit retailer that donates a pair of shoes for every pair sold), and the World Wildlife Fund--Zuckerberg said, and pending its success, "we may open to everyone really soon after that."

The blog Inside Facebook reported last week that four online gift and greeting companies--American Greetings Interactive, GreetBeatz, Someecards, and Real Gifts--would be selling virtual gifts in the Facebook gift shop as part of a test of the new "Pay with Facebook" virtual currency.

Facebook first offered "charity gifts" for a 48-hour window to commemorate the milestone of 200 million members. A total of 16 nonprofits and advocacy groups participated in the initiative.

The social network already uses "credits" to sell in-house and branded virtual gifts, a change it made last November (gifts had originally been listed in U.S. dollars). The extension of the system to third-party developers on Facebook's platform has been talked about for quite some time now but finally appears to be nearing a wider launch.

June 30, 2008 5:56 AM PDT

Project Red lays groundwork for subscription music service

by Caroline McCarthy
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(Credit: Apple)

Good news, celebrity charity aficionados: Project Red is going to be providing some music for that Bono-approved iPod Nano of yours.

The high-profile nonprofit, which donates a chunk of profits to combat AIDS in Africa, will be launching a subscription music service this fall.

The as-yet-unnamed service will launch in September, according to The New York Times, and cost $5 per month.

It's structured like a newsletter: each week, members will get an e-mail with two MP3s--one an exclusive song from a well-known act and the other from an emerging artist--as well as a "Crackerjack surprise" (say, a video) and an update on how Project Red's charity money is being put to use. The songs are DRM-free, so you won't have to own a "Red" iPod in order to listen to them. The store itself is powered by PassAlong Networks, which creates music retail stores for clients and has several contracts with record labels in place.

Half the proceeds will go to Africa, and the other half to the artists and record labels involved. Project Red has had roots in the music industry from the start; U2 frontman Bono is a co-founder of the initiative.

It's tough to gauge the success of such a project. It's being spearheaded by Red's president of content, Don MacKinnon, who previously handled music distribution at Starbucks--another program that focused on blending a selection of well-known music with emerging artists. The ubiquitous coffee chain's in-store music project hasn't been a tremendous success, as is evidenced by its decision to scale back its in-store CD sales.

Project Red's music, however, is a digital initiative, which gives it a leg up on anything involving hard copies. (When was the last time you bought a CD?) But with so much focus on ad-supported free music, you wonder who's going to fork over $5 per month for music that they don't get to choose themselves.

Still, it is for a good cause.

This post was updated at 12:12 PM with more background about the technology powering the store.

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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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