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December 15, 2009 7:14 AM PST

Bebo founder drops $1 million at charity auction

by Caroline McCarthy
  • 3 comments

One of the displays on Monday night for Charity Water, which aims to bring clean water to developing countries by digging new wells.

(Credit: Melanie Aronson for Charity Water)

NEW YORK--What's it like to watch a dot-com mogul spend $1 million? Well, it's sort of nice when it's going to a good cause.

On Monday night, at the annual benefit gala for the nonprofit Charity Water, Bebo founder Michael Birch, one of the event's co-hosts along with the likes of Twitter co-founder Jack Dorsey and entrepreneur Sean Parker, made a surprise announcement. Shortly before the event's live auction to solicit donations for new wells, Birch declared that he would personally match all donations up to $1 million.

Charity Water, a favorite cause of the dot-com set, raises money to build wells in developing countries and then tags them with GPS devices so that donors can keep tabs on them in Google Earth.

Birch, who co-founded Bebo with his wife, Xochi, sold the social network to AOL early last year for $850 million. It's a price tag that never made a whole lot of sense, even with AOL's justification that Bebo's strong foothold among youth in the U.K. would help it with international expansion and that Bebo's technology would be the foundation of a new "People Networks" communication division. They also cashed out just in time: had Bebo been sold much later, it would've been more evident that potential buyers should have been conservative about the valuation of any general-interest social network that wasn't Facebook. AOL, now under new management, has more or less put Bebo aside like an expensive Faberge egg that unexpectedly clashes with the furniture.

Michael Birch hasn't announced a new project yet. But he's starting to emerge as an active figure in philanthropy: Charity Water founder Scott Harrison explained to the 1,200 attendees on Monday night that a crucial donation from Birch had kept the organization afloat last year. (It operates on a "100 percent" policy, meaning that all donations, many of which are very small-scale, go directly to building wells, whereas separate benefactors fund the staffing and operations of the nonprofit itself.) Birch also helped with a redesign of the site that lets interested members set up their own fundraising campaigns, encouraging donations in lieu of birthday gifts or as pledges for a goal (i.e. "If you help me raise $10,000 for Charity Water, I will legally change my name to 'McLovin.'")

Birch brought his young daughter, Isabella, onstage to help make the announcement of the matching pledge. While I'm not sure what to think of the idea of a kid announcing to a thousand-plus people just how much money her parents were about to spend, it was awfully cute that Isabella insisted on doing so with a finger drawn to her mouth in the manner of "Austin Powers" villain Dr. Evil.

And, yes, the goal was met: the $1 million was raised via auction in a matter of 30 minutes.

November 17, 2009 4:04 PM PST

Chase commits $5 million to Facebook charity campaign

by Caroline McCarthy
  • 3 comments

Chase announced Monday a partnership with Facebook to power the finance company's inaugural "Community Giving" campaign, which will allocate a total of $5 million to small, local nonprofits voted on by Facebook members.

The campaign takes the form of--you guessed it--a Facebook Platform application, in which members can choose their favorite of more than 500,000 nonprofits. Naturally, then, they're encouraged to use the hallowed "social graph" to encourage their friends to do so as well.

The winner gets $1 million in a grand-prize announcement slated for February 1; five runners-up get $100,000 apiece, and then the entire top 100 receives $25,000 apiece. There's an advisory board consisting of celebrities and Chase execs, as well as Facebook vice president of communications Elliot Schrage.

The publicity effort for Community Giving, which reached out to celebrity Twitter users in both the entertainment and nonprofit space in addition to the mainstream press to spread the word, says it's been an early success: over 12,000 Facebook members signed on in the first day.

That's not quite as many as the hundreds of thousands who rallied to support a prospective Stephen Colbert presidential campaign in the matter of a week, or the tens of thousands who opted to follow actor Neil Patrick Harris in his first 24 hours on Twitter, but for something that's a legitimate charity effort rather than a goofy viral meme, it's respectable.

Facebook has traditionally been hands-off about partnerships on its application platform, but nonprofit and public interest-related projects have been the exception: the social network forged several media-outlet deals during the 2008 presidential election, partnered with nonprofits to create virtual gifts for its "Facebook for Good" campaign, and synced up with the Huffington Post for a "social news" experiment.

It was less than two years ago that Facebook founder Mark Zuckerberg said that corporate philanthropy wasn't an immediate goal for the social network because, at the time, it simply didn't have the profits.

October 27, 2009 4:24 PM PDT

Facebook: Give peace a poke

by Caroline McCarthy
  • 7 comments

One of the charts from Facebook showing friend connections across conflict zones.

(Credit: Facebook)

Facebook's executives have been saying for a long time that they believe they've built something that can make the world a better place. And now they've launched a hub for that, called "Peace on Facebook."

"Facebook is proud to play a part in promoting peace by building technology that helps people better understand each other," the site explains. "By enabling people from diverse backgrounds to easily connect and share their ideas, we can decrease world conflict in the short and long term."

It appears to be part of something launching from a group affiliated with Stanford University on Tuesday night, called "Peace Dot," and other Web companies will be announced as partners soon.

Right now, it consists primarily of some links to anti-violence activist groups, charts showing Facebook friend connections made between people across ethnic and religious groups with a history of conflict, polls about the viability of world peace, and a "Share Your Thoughts" widget--basically, one of the status update widgets that Facebook rolled out a few months ago.

There's also a link back to Facebook for Good, the nonprofit initiative that the social network launched when it hit 200 million active users around the world this spring.

Facebook's promotes its role in global affairs regularly: it launched a variety of media and voter-registration partnerships during the 2008 presidential elections, for example, and rushed out a translated version of its site in the Farsi language amid reports that it had become an organizing point for activists in the Iranian political crisis this summer.

August 28, 2009 7:41 AM PDT

Nonprofits next to test Facebook payment platform

by Caroline McCarthy
  • 4 comments

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.

August 5, 2009 10:00 AM PDT

Crowded roads ahead for charity 2.0

by Caroline McCarthy
  • 16 comments

Way back in February, the Web's elite were all abuzz over the "Twestivals," a series of events around the world that were organized online to benefit Charity Water, an otherwise small nonprofit organization that funds the construction of wells in developing countries. They ranged from small in-home gatherings to massive nightclub bashes, but there was one general, common hook: spread the word, donate, and tweet about it.

Months later, with Twitter practically bursting at the seams, is this strategy still sustainable?

One part fundraiser and one part publicity blitz, the big-picture hook of "Twestival" was that social-media tools like Twitter and Facebook--with their unprecedented capability to spread the word--could potentially change the face of the nonprofit world. In challenging economic times, the inexpensive use of Twitter, Facebook, YouTube, and other social outlets to solicit small donations from the masses rather than relying on a few deep pockets has drawn extra buzz for Charity Water and its founder, former New York nightlife promoter Scott Harrison.

Charity Water's message: that one in six people on the planet don't have access to clean drinking water.

(Credit: Charity Water)

"We really maintain a presence on about ten of the social media platforms," Harrison said to CNET News on Tuesday. "We're sort of everywhere we need to be, because it's as simple as a sign-up."

"Leveraging social media is absolutely the right way to go," commented Toby Daniels, director of the Think Social initiative at New York's Paley Center for Media, a research project dedicated to applying the past few years' social-networking craze to real-world problems. "The message travels at lightning speed through Twitter, through Facebook, through any of these different channels. People love to share (it) because it's part of their social identity--things that look good, things that make them look good. Everyone is motivated to increase their social capital, and they do that by donating money, by visibly supporting a cause, by donating their time, by recommending other people to donate."

The new-media community has welcomed Charity Water with open arms, and in turn, the nonprofit--which uses Google Earth to map locations of wells and has a Web site full of photos and video taken in the field--has reached out to the Web's luminaries as some of its charter supporters. Last fall, Charity Water hosted a campaign to encourage people born in September to solicit donations from their friends in lieu of gifts. Prominent figures in social media, like Facebook exec Dave Morin and Mashable founder Pete Cashmore, participated in the drive and spread the word to their massive Twitter and Facebook followings, who were eager to jump on the bandwagon. The September campaign raised about $965,000, Harrison said.

"The reason why Scott's been so successful in these areas that people are challenged on is that he's done the most progressive thing," said Elliot Bisnow, organizer of the "Summit Series" entrepreneurship group, which promotes young business leaders' involvement in nonprofit efforts. "He's kind of ahead of the curve on every step." And in this case, being ahead of the curve has meant seeking out the Twitterati rather than Hollywood to spread the word.

But this was before Twitter's growth really began to explode. The latest numbers from traffic firm ComScore peg the microblogging service's June traffic at 44.5 million unique users around the world--in February, when the Twestival events were held, it was less than a quarter of this size--and Facebook has rocketed past a quarter of a billion. Charity Water has been joined in social-media prominence by nonprofit efforts and initiatives from the Bob Woodruff Foundation's Tweet to Remind project to support injured war veterans; to the Twitter-prominent Acumen Fund, an investment organization dedicated to alleviating poverty; to the "Facebook for Good" campaign that kicked off when the social network hit 200 million active users.

As the Web is flooded with more and more charity initiatives, both large, well-established ones and new nonprofits created specifically with harnessing social media in mind, problems can arise. At best, donations could be spread too thin, rendering many organizations less effective.

Of more concern is the fact that the influx of charities and nonprofits to platforms like Facebook and Twitter could result in noise, congestion, and outright apathy. Spreading awareness of a good cause grows difficult when that good cause starts to seem like spam. If one tweet after another is seeking donations, people might just get fed up.

"My filter is set pretty high," Toby Daniels said, "even though I think I'm very connected to the nonprofit space, and obviously invested in the social media component of that."

"I am a little concerned," Elliott Bisnow said of the potential for the "Charity 2.0" trend to reach a tipping point sooner rather than later. "People are more careful with scrutinizing what they give to now...There were way fewer nonprofits even ten years ago than there are today. There are tons and tons more organizations, and you can't just have a fundraiser anymore or send out messages or a newsletter or an e-mail. You can't just do that and expect to raise money."

The Acumen Fund is another nonprofit organization that has gained a prominent following on social media services like Twitter.

(Credit: The Acumen Fund)

We may already have a case study of what can happen when, for better or for worse, there are too many people out there trying to do good. In April, The Washington Post published an investigation into the actual effectiveness of Causes, one of the applications to gain early prominence on Facebook's platform. At the time, there were a whopping 179,000 nonprofits with Causes profiles, which allow for easy online donation transactions that are then broadcast in donors' news feeds, but the Post noted that the majority had not received a single donation.

Experts in the nonprofit space say that while any upstart organization--like any start-up business--will want to have a strong presence on Facebook and Twitter, that it's dangerous to rely too heavily on them. In order to be successful on Twitter, or on Causes, or with a Facebook fan page or YouTube channel, there needs to be legitimate promotion and effort, not to mention physical resources.

Toby Daniels pointed to the case of Charity Water.

"They're big in social media, but they're small in the scheme of things, and their biggest problem now is scale," Think Social's Toby Daniels said. "You cannot scale a business, or any type of organization, if you don't have infrastructure, and you don't gain infrastructure by having a Twitter strategy or a Facebook strategy or anything. You need staff, you need operational resources, you need to have all your business systems in place."

The truth is that Twitter and Facebook may fall from favor in the charity world if they grow so big and crowded that it puts a damper on effectiveness. Organizations that want to stay on top of a social media strategy will have to look elsewhere. And Scott Harrison said that Charity Water is already making its next steps.

"We're launching a brand new Web site," Harrison said, adding that it was built with the help of Michael Birch, who co-founded Bebo and sold it to AOL for $850 million last year. The focus, Harrison explained, is to make it possible for individuals to launch their own Charity Water donation campaigns.

"It goes into beta in a few weeks as part of the September campaign, so it'll allow people to 'give up' their birthdays again, but not just September," he said. "People can be creative. They can run marathons, they can skydive, they can give up weddings and anniversaries, they can get their schools involved, et cetera. And it will tie every dollar to a Water project. We're tracking each gift down to the project it's funding."

Harrison says he has no plans to give up on Twitter, even as it grows so big that it may be less effective.

"I don't think you'll see us pull back," Harrison insisted. "If anything, we'll be, maybe, creating more unique strategies for each of our (social media) presences."

And others in the digital charity space say that even if the power of a Twitter account and a Facebook fan page wane, that they'll have been well worth it.

"We've already spread the word to about 3,000 more people that we wouldn't have access to otherwise," said Melissa Kushner, founder of a small school supplies charity called Goods4Good, of the effectiveness of social media tools, "and so that would be a coup in and of itself."

April 8, 2009 6:59 AM PDT

Facebook hits 200 million members, thinks charity

by Caroline McCarthy
  • 3 comments

We knew Facebook was about to hit 200 million active users, but now it's official, per a post by founder and CEO Mark Zuckerberg on the company's official blog.

"We will welcome our 200 millionth user to Facebook some time today," wrote Zuckerberg, who's just over a month away from his 25th birthday. "Growing rapidly to 200 million users is a really good start, but we've always known that in order for Facebook to help people represent everything that is happening in their world, everyone needs to have a voice."

To commemorate the occasion, Facebook has launched a page called Facebook for Good, a page for members to share stories and experiences about how the social site has helped them give back.

It has also partnered with 16 charities and advocacy groups that have created virtual "gifts" that members can buy for one anothers' profiles. Most of the proceeds of the sale will go to the charity--Zuckerberg wrote that the rest will go to administrative costs, not to Facebook.

The partner organizations include a few longstanding names in charity like the American Red Cross and the American Heart Association, as well as newer tech-industry favorites like micro-loan start-up Kiva, shoe retailer Toms, and clean-water group Charity Water.

The campaign also puts Facebook's virtual-gift platform and "credits" system back in the spotlight at a time when, after much anticipation, the company is finally starting to make some moves in the micropayment space.

Slightly over a year ago, at the South by Southwest Interactive Festival, Zuckerberg was asked about Facebook's plans in the philanthropic space. His response was that the company wasn't yet at that point.

"I think at this point, because we're not incredibly profitable, we're not at that stage of the company--hopefully we get there--that's not really something that we can do a lot of," he said to CNET News last March. "But I'd like to think that just what the company is trying to do in general, just helping people communicate, is actually making the world better."

A year later, Facebook's revenues are up, but not as much as some critics say they ought to be. This kind of growth isn't cheap--and with 200 million users, Facebook still has a lot of work to do on the business side, not just in the feel-good, change-the-world department.

February 12, 2009 5:17 AM PST

Hundreds of 'Twestival' fundraisers springing up tonight

by Caroline McCarthy
  • 2 comments

If you're looking for something "good" to do Thursday night, you're in luck. Volunteer-organized Twestivals are planned in more than 200 cities around the world.

The Twestivals are a loose coalition of fundraisers that aim to use the social-media tool du jour--Twitter--to raise money for Charity Water, a nonprofit devoted to bringing clean drinking water to developing countries.

It's not officially organized by Twitter, but enthusiasts are hoping that the series of Twestivals can be an example for future fundraisers and how the likes of Twitter can fuel volunteer and donor efforts. Word has spread largely through Twitter buzz. And given the current economic situation, many nonprofits are going to need to follow the example of the small-donor-driven Obama campaign in lieu of depending on a few deep pockets.

I should disclose that I've been doing some volunteer work with the New York edition of Twestival, helping write some copy for promotional materials. New York is Charity Water's home city, and the organizers are expecting more than a thousand people at a big nightclub blowout in the West Chelsea neighborhood. Other Twestivals will be smaller and more intimate gatherings, more like the "meetups" (or "tweetups," if you will) that local Twitter communities have been organizing for months now.

All in all, Twestivals around the world hope to raise a whopping $1 million on the night of the event and as a result of subsequent press throughout the rest of February.

December 12, 2008 2:02 PM PST

Party season rolls on, but we pay for our drinks now

by Caroline McCarthy
  • 1 comment

The final Media Meshing party on Thursday night.

(Credit: Kate Miltner (flickr.com/photos/loggedhours))

NEW YORK--I hereby insist that we all stop using the "Recession? What recession?" line, which seems to be used every time any company has thrown any moderately lavish party in the last two months. Not only is it overused, but I think folks have caught onto the fact that things have legitimately changed.

Here in New York, the last blowout launch party in the city was for T-Mobile's Android phone in October. Company holiday parties have been scaled back like mad, leaving fewer opportunities for that great New York sport known as party-crashing. But socialization hasn't stopped; it's just changed its tune.

There were a few events of note this week. Note the trend: no more open bars!

The Goods for Good charity event at the downtown City Winery.

(Credit: Goods for Good)

• On Monday night, a relatively new nonprofit called Goods for Good held its annual benefit (read: everyone paid to get in) at a new downtown venue called the City Winery. (It is, in fact, Manhattan's only winery.) Goods for Good's mission is to gather unwanted corporate supplies en masse, from pens and notebooks to conference swag, and donate it to schools in developing countries.

It wasn't a tech event, per se, but there's a reason I'm including it here: The organizers said that they're not really on Silicon Valley's radar, but would like to be. At the Web 2.0 Expo in San Francisco earlier this year, we saw the emergence of SchwagginWagon, which encouraged conference attendees to donate the free stuff they got on the show floor and then didn't want. Goods for Good's angle is a little different, since they are interested in bulk supplies that would otherwise be thrown away and that could actually be put to use in a classroom. Check 'em out if you're interested.

Blip.tv, a video-sharing platform that pulled in another round of financing just in time, threw its holiday party at a low-key downtown bar on Wednesday night. There was no open bar; company executives were surreptitiously handing out drink tokens instead. Within a couple of hours, the place was pretty much a mosh pit--even when the free drinks ran out.

• Prankster-slash-boulevardier Richard Blakeley, by day the video editor at Gawker Media, decided earlier this month to call off his series of monthly "Media Meshing" mixers. There's never been anything lavish about Media Meshing; it's a cash-bar event at a relatively divey bar called Sweet and Vicious. But Blakeley's rationale was that it's a bit gauche to be throwing a series of media parties while people continue to lose their jobs. Gawker itself has gone through rolling layoffs this season, sparing Blakeley but axing many of his cohorts.

So Thursday night was the final Media Meshing, at least for a while. There are persistent rumors that someone else with less recession sensitivity will take the reins. Or not. But in either case, the economic reality has clearly hit the after-hours scene.

"I haven't had a drink all night," one of Blakeley's Gawker colleagues told me, shaking his head. Knowing that such behavior was uncharacteristic, I asked him why. His reply was, "Because nobody's offered to buy me one yet."

December 3, 2008 8:47 AM PST

Wikipedia gets $890,000 for the Luddites

by Caroline McCarthy
  • 19 comments

Anyone who's ever edited or created a Wikipedia entry can attest to the fact that it's not that self-explanatory. They're in luck--the nonprofit anyone-can-edit encyclopedia has received $890,000 from the Stanton Foundation in order to make it easier to use.

More specifically, the grant was given to the Wikimedia Foundation, the organization that encompasses Wikipedia. It'll fund the hire of three new software developers in the foundation's San Francisco office. Then, per a press release, the team will "commission research to identify the most common barriers to entry for first-time writers, and then work to systematically reduce or eliminate them...hiding complex elements of the user interface from people who don't need them."

Wikipedia will make all new code open-source.

"Wikipedia attracts writers who have a moderate-to-high level of technical understanding, but it excludes lots of smart, knowledgeable people who are less tech-centric," Wikimedia Foundation executive director Sue Gardner said in the release. "One of our key priorities is to attract those people and persuade them to help write and edit the encyclopedia. I am thrilled that the Stanton Foundation recognizes the importance of that work, and will be helping us with it."

Also a plus for a more user-friendly Wikipedia: Ideally, its millions of articles will have a broader depth of coverage. My colleague Declan McCullagh did an assessment last year of the skew toward geeky pop-culture content: the article for the mythological figure Vulcan, for example, is about one tenth as long as the article for the Vulcans of Star Trek fame.

The Stanton Foundation was founded by broadcast executive Frank Stanton, who served as president of CBS (which publishes CNET News) from 1946 to 1971.

November 18, 2008 3:19 PM PST

Facebook, Google, others sponsor youth activism summit

by Caroline McCarthy
  • 1 comment
Alliance of Youth Movements Summit (Credit: Howcast Media)

Facebook, Google, and the Google-owned YouTube are among the sponsors for the Alliance of Youth Movements Summit, an event taking place at New York's Columbia Law School from December 3-5.

Along with other collaborators--which include the U.S. Department of State, MTV, Access 360 Media, and start-up Howcast--the event hopes to "find (the) best ways to use digital media to promote freedom and justice, and counter violence, extremism, and oppression."

The companies have amassed 17 leaders of different activist groups and hope to bring them together to come up with a common set of principles and strategies, inspired by a movement against a Colombian extremist group that was formed and organized on Facebook.

"Aided by social-networking technologies, the organization inspired 12 million people in 190 cities around the world to take to the streets in protest against the FARC, an extremist group that has been terrorizing Colombia for more than 40 years," an announcement of the summit read. "The magnitude of the marches illustrated once and for all that the FARC lacked a strong support base. Within days of the protests, the FARC witnessed massive desertions from their ranks."

Speakers at next month's summit include Facebook co-founder Dustin Moskowitz, actress and talk show host Whoopi Goldberg, and State Department Undersecretary James K. Glassman.

The State Department has already partnered with YouTube for its "Democracy Challenge," a moviemaking competition in conjunction with several film schools. And in the wake of the 2008 presidential election, Facebook has been stepping up its activism and outreach efforts; earlier this fall, it sponsored the ServiceNation summit.

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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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