Online Competitions - an NGO stimulous package?

This is shaping up to be the year of online competition and contests for NGOs and maybe for social entrepreneurs. Vodafone Foundation recently announced its three Wireless Innovation Project winners who will share $700,000 in prizes for their innovative ideas for using wireless technology for the greater good. The innovations - Active Networked Tags for Disaster Recovery applications to use wireless devices to locate catastrophe survivors;  the CelloPhone, an imaging platform on a cell phone;  and the CellScope, a way to use cellphones for mobile diagnostic microscopy - were selected from nearly 100 applicants from U.S. universities and nonprofit organizations for wireless innovation to address a critical global issue.

In another online competition, the actor Hugh Jackman challenged Twitter users to explain why he should support their favorite charity with the most convincing “tweet” and win $100,000 for their charity.  And the Case Foundation launched its latest  Giving Challenge, a contest conducted through Causes GlobalGiving, giving US NGOs the chance to win up to $6,000 and be part of  GlobalGiving’s programs. And coming soon, the Target Corporation will launch a contest through it’s Facebook page for visitors to vote for  a list of 10charities to win part  of $3 million in prizes.

The online NGO contest prizes are not all money.  CommuniCause, offers a “social media makeover” as a prize, which it values at $25,000.  The site offers social media tools to NGOs to generate enough votes to get themselves listed as a contestant.  Then, there is Ashton Kutcher's offer of 10,000 bednets if more people followed him on Twitter than follow CNN.  He won and so did  Malaria No More, which received and distributed the nets.

These contests are part of a larger movement, dubbed the "Facebook Philanthropies" (no connection to Facebook),  which uses the vast numbers of the internet to raise funds, much like Kiva and Nameste-Direct Foundations have been doing for microfinance loans.  The Vodafone competition, while not unique, raised the stakes for social entrepreneurs – stimulating innovation and possibly new social businesses.  However, although online giving to the nation's largest charities grew 37 percent in 2006 and Network for Good and JustGive.org saw sharper increases in cash flow, online contests were a small fraction of giving and will likely stay that way. I think that they are a growing trend, however – not one on which NPOs can rely for operating or even project funds, but one that will kick off new NGOs and new social entrepreneurs. Because of this, I recommend social entrepreneurs to be on Twitter, Facebook, and set up Google alerts to clue them in to online contests that could stir up excitement in the organization and lead to some prize money that launches an innovation.   There is nothing like $700,000 to stimulate innovation, even if the odds of winning are only 3%.