Technology, Social Media and Nonprofit Fundraising Resources

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1 National State Attorneys General Program Charities Oversight and Regulation Project Technology, Social Media and Nonprofit Fundraising Resources LEGAL REQUIREMENTS AND GUIDES Unified Registration Statement: The Unified Registration Statement (URS) represents an effort to consolidate the information and data requirements of all states that require registration of nonprofit organizations performing charitable solicitations within their jurisdictions. The effort is organized by the National Association of State Charities Officials and the National Association of Attorneys General, and is one part of the Standardized Reporting Project, whose aim is to standardize, simplify, and economize compliance under the states' solicitation laws. Department of the Treasury, Internal Revenue Service, Form 1023: Application for Recognition of Exemption, see also Department of the Treasury, Internal Revenue Service, Instructions for Form 1023, Department of the Treasury, Internal Revenue Service, Form 990: Return of Organization Exempt From Income Tax, National Association of State Charities Officials, Charleston Principles (March 14, 2001) Indiana Rules and forms for charitable solicitation and charity gaming o Ind. Code , available at (Professional Fundraiser Consultant or Solicitor Registration). o Ind. Code (Charity Gaming Licenses). o Ind. Code , (Gambling). o Office of the Indiana Attorney General, Charitable Fundraising, o IN.gov, Charity Gaming, 1

2 Cases: o Illinois ex rel. Madigan v. Telemarketing Assocs., 538 U.S. 600 (2003) ( holding that for-profit fundraising corporation s failure to voluntarily disclose the corporations' fees of up to 85% of charitable donations when contacting potential donees was insufficient to state a claim for fraud, but that the state was nonetheless entitled to maintain the fraud action alleging that the corporations made false or misleading representations which were not constitutionally-protected free speech designed to deceive donors about how their donations would be used). o Tamburo v. Dworkin, 601 F.3d 693, , (7th Cir. Ill. 2010) (holding that defendants who used their websites and/or blast s to generate a boycott of the plaintiff with knowledge that plaintiff lived in Illinois and would be injured there were subject to specific personal jurisdiction requiring that the contacts in question relate directly to the issue in controversy in the state, but that a defendant who merely reposted messages from other defendants on a private listserve was not subject to such jurisdiction). o Bird v. Parsons, 289 F.3d 865, (6th Cir. 2002) (holding the maintenance of a public Internet website on which customers could pay to register domain names to be insufficient, without more, to establish the court s general personal jurisdiction over defendant in Ohio requiring continuous and systematic contacts with the state but that these contacts amounted to purposeful availment of the privilege of doing business in the state so as to establish specific personal jurisdiction over defendant). o Revell v. Lidov, 317 F.3d 467, (5th Cir. 2002) (finding that defendant s website that allowed users to subscribe to its publication, purchase advertising and submit electronic applications for admission was not sufficiently interactive to establish general jurisdiction in Texas, and that the defendant s internet contacts with the state maintenance of an online bulletin board to which users anywhere could submit information as well as receive it were not sufficiently interactive to establish specific personal jurisdiction). o MGM Studios Inc. v. Grokster, Ltd., 243 F. Supp. 2d 1073, 1087 (C.D. Cal. 2003) (holding that software company had knowingly and purposefully availed itself of the privilege of doing business in California such that it was subject to specific personal jurisdiction in the state, where the company s internet contacts with California were not strictly passive, allowing its software to be downloaded by more than 2 million California residents for an essentially commercial purpose i.e., one which generated income for the company). o ALS Scan, Inc. v. Digital Serv. Consultants, Inc., 293 F.3d 707, 713 (4th Cir. 2002) (applying sliding interactivity scale for defining when electronic contacts with a state are sufficient to establish personal jurisdiction, and finding that where defendant s only contacts with the State occur when persons in Maryland access [defendant s] website, general jurisdiction will not lie). o Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 414, 418, 420 (9th Cir. 1997) (applying sliding scale interactivity test for personal jurisdiction based on websites, holding that operating a passive website, without more, does not establish jurisdiction, and 2

3 that defendant who did not specifically encourage Arizona residents to visit its website or engage in any transaction with any of them, was not subject to personal jurisdiction in the state). o Zippo Mfg. Co. v. Zippo DOT Com, Inc., 952 F. Supp. 1119, (W.D. Pa. 1997) (asserting a sliding-scale personal jurisdiction analysis for internet-based claims based on the interactivity and commercial nature of internet contacts, and finding specific personal jurisdiction over a company that provided an internet news service to 3,000 subscribers only 2 percent of its total subscribers in Pennsylvania and entered into seven contracts with Pennsylvania internet access providers to supply its services to customers). o Inset Systems, Inc. v. Instruction Set, 937 F. Supp. 161, 165 (D. Conn. 1996) (holding that computer tech support company, purposefully availed itself of the privilege of doing business within Connecticut when it directed its advertising activities via the Internet and its toll-free number toward all states, including as many as 10,000 Internet users within Connecticut, so as to reasonably expect to be haled into court in the state); but see Bensusan Restaurant Corp., v. King, 937 F. Supp. 295 (S.D. N.Y. 1996) ( Creating a [web]site, like placing a product into the stream of commerce, may be felt nationwide - or even worldwide - but, without more, it is not an act purposefully directed toward the forum state.... Accordingly, the exercise of personal jurisdiction over [defendant] in this case would violate the protections of the Due Process Clause. ) WEBINARS AND PODCASTS The Nonprofit Risk Management Center, Webinar: Cyberspace Risk: What You Don't Know Could Hurt You, (for purchase). Explores practical steps for risk identification and the design of effective strategies for managing the risks of your online presence. TechPresident, PdF Network Call: The Future of Social Networking for Non-Profits, (Feb. 3, 2011), Rosita Cortez, Blackbaud Conference 2010: 5 Must-See Presentations, Social Media 4 Nonprofits (Oct. 24, 2010), o Alison Fine and Beth Kanter, Becoming a Networked Nonprofit: Overcoming Your Organization s Fears and Jeers on the Road to Effective Use of Social Media, Blackbaud Conference 2010, -!. o Holly Ross, Social Media: Paint by the Numbers, Blackbaud Conference 2010, ial Media for Nonprofits Ignite!. 3

4 o Claire Williams Diaz, Noah Everett, Matthew Mahan and Ramya Raghavan, Social Media for Nonprofits Ignite!, Blackbaud Conference 2010, Legal Risks Overview PUBLICATIONS 501 Connect, Social Media and the Law (May 23, 2011), Emily Chan, BoardSource Leadership Forum Part II: Top Ten Legal Risks for Nonprofit Boards, Nonprofit Law Blog (Nov. 29, 2010), Emil Chan, Social Media Policy Resources for Nonprofits, Nonprofit Law Blog (Sept. 29, 2010), Dennis M. Kirschbaum, Meeting Your Clients' Expectations of Privacy Online, Nonprofit Risk Management Center, Kevin Fayle, Understanding the Legal Issues for Social Networking Sites and Their Users, FindLaw (Sept. 19, 2007), Gammon & Grange P.C., Legal Risks in Nonprofit Social Media Use, G&G Law Alert (Feb. 1, 2012), HTML.asp. Megan C. Spratt, Legal Issues Arising from Nonprofit Organizations Use of Social Media Part One, Whiteford Taylor Preston LLP (Sep. 9, 2011), Megan C. Spratt, Legal Issues Arising from Nonprofit Organizations Use of Social Media Part Two, Whiteford Taylor Preston LLP (Oct. 6, 2011), Jeffrey Tennenbaum, A.J. Zottola & Lesley P. Marlin, Online Social Media and Nonprofits: Navigating the Legal Pitfalls, Venable LLC (May 19, 2011), 9c90c617450e. 4

5 Jeffrey S. Tenenbaum and A.J. Zottola, Online Social Networks, CyberRisk, and Your Nonprofit: What You Need to Know, Nonprofit Risk Management Center, Venable LLC, New Guidance for Nonprofits Regarding Social Media Policies and Punishment (Sept. 8, 2011), Fraudulent Fundraising Lisa Chiu, State Regulators Shine Spotlight on Social Media, Chronicle of Philanthropy (Aug. 31, 2011), Ben Gose, Preventing Fraud in Social-Network Fund Raising: a New Challenge, Chron. of Philanthropy (Mar. 20, 2011), Social/ Derek Lieu, How Fundraising Sites Protect Donors, Chron. of Philanthropy (Mar. 23, 2011), NASCO Board, The Charleston Principles: Guidelines on Charitable Solicitations Using the Internet (Mar. 14, 2001), Principles-Final.pdf. Twitter Jeff Neuberger, Proskauer Rose, Who Owns an Employee s Twitter and Other Online Accounts?, New Media and Technology Law Blog (Dec. 8, 2011), Erica Orden, City Ballet A-Twitter Over Posts, Wall Street Journal (Mar. 15, 2011), Employment Issues Emily Chan, I Thought We Were Friends! Can Nonprofits Terminate Employees for Their Social Media Posts?, Nonprofit Quarterly (Jan. 10, 2012), -thought-we-were-friends-can-nonprofits-terminate-employees-for-their-social-media-posts- &catid=153:features&itemid=336. Nonprofit Risk Management Center, Personal Privacy: The Latest Oxymoron on the Internet, 5

6 Lafe E. Solomon, Acting General Counsel, Nat l Labor Relations Board, Memorandum OM 12-31: Report Concerning Social Media Cases (Jan. 24, 2012) Lafe E. Solomon, Acting General Counsel, Nat l Labor Relations Board, Memorandum OM 11-74: Report Concerning Social Media Cases (Aug. 18, 2011), Ronald W. Taylor & Jeffrey S. Tenenbaum,, New Guidance for Nonprofits Regarding Social Media Policies and Punishment, Venable LLP (Sep. 8, 2001), Overview of Social Media Use by Nonprofits Nora Ganim Barnes, Social Media Usage Now Ubiquitous Among U.S. Top Charities, Ahead of All Other Sectors, Ctr. for Mktg. Research, Univ. of Mass. Dartmouth (Aug. 2010), Caroline Bermudez, How Social Networks Are Changing the Nonprofit World, Chronicle of Philosophy (June 13, 2010), Cha/65898/. Blackboud.com, Social Giving with Blackbaud Friends Asking Friends, Emily Chan, 5 Social Media Myths, Nonprofit Law Blog (Mar. 25, 2011), Jennifer Chandler Hauge, Technology, Boon or Bust?, Nonprofit Risk Management Center (May/June 2008), https://www.nonprofitrisk.org/library/articles/technology shtml. Chron. of Philanthropy, Online Fund-Raising Data, 1. Chron. of Philanthropy, Top Social Media Tools Used by Charities for Online Fund-Raising (Apr. 18, 2010), Rick Cohen, Virtual World, Nonprofit Realities, Nonprofit Quarterly (Jan. 30, 2008), ual-worlds-nonprofit-realities&catid=149:rick-cohen&itemid=117. Convio, Online Marketing Nonprofit Benchmark Index Study (Mar. 2011), (examines data from 600 of Convio s nonprofit clients, including monthly website traffic, online revenue, and response rates to online appeals and aggregates this information into benchmarks that nonprofit organizations can use to compare results with those of its peer group). 6

7 Craigconnects, Who Rules Social Media? A Look at Social Media Impact by Nonprofit Issues, (summary of study of social media usage by the top 5 nonprofits (based on total expenses) in eight different categories). Allison Fine & Beth Kanter, How Nonprofit Groups Need to Adjust to a Networked World, Chronicle of Philanthropy (June ), Nathan Hand, 10 Do s and Don ts of Social Media Fundraising, fundchat.org (July 26, 2011), Heather Joslyn, How Small Charities Can Make Web Sites Click With Supporters (July ), Beth Kanter, When is One Million Fans on Facebook Worth More Than a Million Bucks?, Beth s Blog (Nov. 15, 2011), Aaron Lester, Tweet Freely: Your Social Media Policy and You, The Nonprofit Quarterly (March 9, 2011), weet-freely-your-social-media-policy-and-you&catid=153:features&itemid=336. Farhad Manjoo, Online Giving, One Person At a Time, N.Y. Times (Nov. 11, 2010), Nonprofit Technology Network et al., Nonprofit Social Network Benchmark Report (2011), Peter Panepento, Guest Post: How Nonprofit Groups Can Benefit from Foursquare, The Chronicle of Philanthropy (April 5, 2010), Nonprofit/22264/. Holly Ross, Think Conversation, Not Megaphone, for Social Media Success (NTEN Case Study), Getting Attention (Sept. 2, 2011), Cody Switzer, A Look at Large Charities on Social Media, Chron. of Philanthropy (Oct. 18, 2011), Nicole Wallace, Fund Raising Via Personal Web Sites Grows, but So Do Risks of Misuse, Chronicle of Philanthropy (June 14, 2007), Web/54704/ (subscription required). Maureen West, How Nonprofits Can Use Social Media to Spark Change, Chron. of Philanthropy (Feb. 20, 2011), Jennifer Young, How Social Media Transformed a Nonprofit Medical Professional Society, Nonprofit Quarterly (Aug. 31, 2011), 7

8 ow-social-media-transformed-a-nonprofit-medical-professionalsociety&catid=153:features&itemid=336. Debating the Value of Social Media to Nonprofit Organizations Kristie L. Cattafi, What s its Cost? ROI of Social Media Can Be an Intangible, Non-Profit Times (Mar. 15, 2011), Christine Durand & Kristen Cici, Four Reasons WHY NOT to Use Social Media...and Why to Use it Anyway, Nonprofit Quarterly (Fall/Winter 2011), available at our-reasons-why-not-to-use-social-media-and-why-to-use-itanyway&catid=153:features&itemid=336. Raymund Flandez, Most Charities Still Do Not Raise Much Money Via Social Media, Chron. of Philanthropy (Aug. 21, 2011), Use/ Nicole Wallace, Few Charities are Raising Big Amounts via Social Media Says Study, Chron. of Philanthropy (May 12, 2011), Social Media Strategy Development Convio, Inc., Going Social: Tapping into Social Media for Nonprofit Success, Council of Nonprofits, Ten Best Practices for Online Fundraisers, best practices for online fundraising2.pdf(provides tips for maximizing online fundraising efforts). Idealware, The Nonprofit Social Media Decision Guide, Daisy Wakefield and Aphra Sklair, Institute for Philanthropy, Philanthropy and Social Media, and Social Media.pdf(overview of social media strategy development for nonprofits). Best Practices Kristin Beardsley, Setting Boundaries: Developing Social Media Policies for Your Organization (powerpoint presentation), Canada Helps 8

9 DIOSA Communications, Foursquare Best Practices for Nonprofit Organizations, DIOSA Communications, Facebook Best Practices for Nonprofit Organizations, DIOSA Communications, Twitter Best Practices for Nonprofit Organizations, DIOSA Communications, YouTube Best Practices for Nonprofit Organizations, Debra Donston-Miller, Social Networking Policy Requires Regular Checkups, The BrainYard (Sep. 20, 2011), ocial-networking-policy-requires-regular-checkups. Jennifer Amanda Jones, Ten Tips for Creating a Social Media Policy for Your Business, Social Media Examiner (Feb. 9, 2012), Beth Kanter, Social Media Policy Best Practices: Trust is Cheaper than Control, Beth s Blog (Apr. 6, 2011), Sharon Lauby, Ten Must-Haves for Your Social Media Policy, Mashable (Jun. 2, 2009), Social Media Policies General Information Danielle Brigida and Wendy Harman, How to Craft a Social Media Policy for Charity Workers, Chron. of Philanthropy (Jul. 26, 2011), Policies/ Chris Bordeaux, Policy Database, Social Media Governance, - axzz1nk0jf8hw. Heather Joslyn, Social-Media Policies Can Help Charity Workers Navigate a New World, Chron. of Philanthropy (Jan. 6, 2010), Help/ Heather Joslyn and Peter Panepento, Few Charities Have Social-Media Policies, Survey Finds, Chron. of Philanthropy (Jan. 6, 2010), Have/ Beth Kanter, Social Media in the Nonprofit Workplace: Does Your Organization Need A Social Media Policy?, Beth s Blog: Nonprofits and Social Media (Apr. 15, 2009), 9

10 PolicyTool for Social Media, Pro Bono Partnership, Social Media Policies: What They Are and Why Your Organization Should Have One (Jan. 2010), available at SocialFish and Croydon Consulting, Tips for Writing Your First Social Media Policy, Nonprofit Technology Network (Feb. 17, 2010, 8:17 AM), SocialFish and Croydon Consulting, Social Media, Risk, and Policies for Associations, available at Examples of Social Media Policies American Red Cross, Online Communications Guidelines, available at https://docs.google.com/view?docid=df4n5v7k_98chfqrnch&hgd=1 - _PERSONAL_COMMUNICATIONS. American Red Cross, Social Media Handbook for Local Red Cross Units, available at https://docs.google.com/view?docid=df4n5v7k_216g5jdd7c8&hgd=1 - _Introduction. DePaul University, Social Media Guidelines, Open Society Foundations, Web Style Guide, Resources for Information on Social Media and Nonprofits Case Foundation, Social Media: Harnessing Social Media Tools and Platforms for Good, Charity Mash: Online guide/resource on digital communications for charities. The Charities Regulation and Oversight Project of the National State Attorneys General Program at Columbia Law School: The Charities Regulation and Oversight Project provides a resource to state regulators in fulfilling their charities enforcement responsibilities. The project hosts resources on its website: mbia.edu/center_program/ag/policy/charitiesproj. Beth Kanter: Beth s Blog: Nonprofits and Social Media, (see for blog posts prior to May 17, 2010). 10

11 NonprofitLawBlog: The Nonprofit Risk Management Center: The Center seeks to both understand and respond to questions with practical, affordable suggestions for controlling risks that threaten a nonprofit s ability to accomplish its mission. https://www.nonprofitrisk.org/. Nonprofit Technology Network: A membership-based organization of nonprofit technology professionals. NTEN facilitates the exchange of knowledge and information within the nonprofit community. Nonprofit Technology News: Social Brite Blog: Social Media 4 Nonprofits: This blog is dedicated to advancing the mission of nonprofits via Social Media. Social Philanthropy blog: Examining the use of social media for social good. Many of the posts are by Peter Panepento, who is the Web Editor of Chronicle of Philanthropy. TechSoup Global: TechSoup is an organization that assists nonprofits with obtaining, using and sustaining technology, in order to maximize their philanthropic impact. 11

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