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Yesterday, ReadWrite Web reported about a new credit card scanner from a company called Square. This scanner will hook up to any device with an audio input jack.

While this may start as an iPhone-focused product, it is clear from Square’s website that it won’t stay that way. You don’t hire developers for Android and Blackberry unless you are looking to create a broad mobile product.

The card reader and application will cost only $1. Square can do this because they’ll be taking 2.9 percent of every transaction. It won’t require fund recipients to have a merchant account, so the 2.9 percent fee is competitive for taking credit card transactions.

If you read the comments on the post linked above, you’ll read about a number of security and privacy concerns. Concerns I share —though I’m fairly certain that it’s a bit premature to say the product isn’t safe when it won’t launch for six months.

Regardless of this product, mobile payment solutions tied to cell phones are coming— and coming soon. For ministries, I see a number of possible uses.

The first that comes to mind is events like concerts or conferences. Instead of keeping volunteers behind a counter and requiring possible donors to fill out forms, volunteers could be out front. Each one equipped with an iPad showing a video presentation. If a donor is moved, the volunteer simply swipes the donor’s card and processes the transaction.

At only $1 per device, you could even imagine sending these out into the field with advocates for your organization. For example, someone is giving a talk to their Sunday School class about your ministry. You send them a Square device, and they can immediately take donations.

Of course you can raise objections, like control and others, to these ideas. It is always easier to tear down a new idea than to embrace it. New ideas always have an element of risk, and this one is no exception. From everything I’ve seen, it is clear that ministries are going to have to do things outside of their comfort zone if they hope to continue to thrive.

The question for your organization is: “Are you willing to be out front, or are you going to follow behind?”

Pollster John Zogby reports that that Gen Y is engaging like no other generation before it. They’re eager to change the system and protect people in developing nations from unfair economic systems that leave them in poverty.

But aren’t they just a generation of slackers?

Gen Y “discovered” Myspace, Facebook and Twitter. Their tunnel vision doesn’t extend beyond their monitor as they make tiresome observations about the latest pizza they ate or the way their romantic relationship ended . . . even though it never really got beyond email.

Not so fast. That was Gen X.

But seriously . . . that may be true for a small portion of Gen Y. But we shouldn’t write off the whole generation.

In an article about Zogby’s research, Jeffrey Jensen Arnett reports that “this is a generation who is volunteering in record numbers for organizations like the Peace Corps, Americorps, and Teach for America.”

Why? Because they consider themselves global citizens. They don’t have to be sold on helping the starving child in Darfur because they already believe she’s their neighbor.

But will they give money?

Yes, if you choose to authentically engage them in what they can do now. Will you give them meaningful opportunities to volunteer, advocate and use their unique talents to transform the world?

That way, when their income catches up to their heart, they’ll be willing to give it away as well. Then, they’ll truly be donors for life.

We want to hear from you.

What’s your experience? How have you seen the passion of Gen Y in action in your organization? How are you making them donors for life? Let’s start the conversation.

The scene: the summer of 2009 in Tehran, Iran.

More angry protestors are beaten back by the Basiji, the Iranian regime’s oppressive militia. Neda is an innocent bystander passing through. Not even innocent bystanders are safe. A Basiji sniper bullet rips into her heart. She lays on the ground bleeding to death. Her father cries out for help.

Within days, her face is everywhere in Iran. Protestors hold posters of her face emblazoned with the slogan “we are all Neda.” She’s become an international symbol for the courage of the people of the Green Revolution. A reminder of the brutality of the Iranian regime.

All because of a cell phone video.

Read more of Storytelling, the Green Revolution and cell phone video.

It turns out that lab rats and donors have something in common – and it’s a good thing!

How could donors being like rats possibly be a good thing, you ask? Well, it helps us understand the importance of some fundamental fundraising techniques.

Let’s hear from Roger Dooley from the blog Neuromarketing:

…back in the 1930s, researchers made an interesting discovery: rats running a maze to reach food ran faster as they got closer to the food. This finding led to the “goal gradient hypothesis,” which states that the tendency to approach a goal increases with proximity to the goal. Simply put, the closer the goal, the more effort you expend to get there.

Dooley points out that this theory has been validated in humans in many different settings, including with frequent flyer miles, rewards-based credit cards and coffee shop punch card programs. On that last example, Columbia University researchers found that when individuals are given a rewards punch card, they will drink coffee more frequently as they approach a fully punched card.

Goal gradient hypothesis in fundraising

We see goal gradient hypothesis at play in some of the strongest fundraising techniques at our disposal, and I hope understanding the psychology behind the effect helps you do a better job at using those techniques.

• Matching gift appeals. Matching gift appeals play well in part because they create momentum for the donor. Someone has already contributed to solve the problem – you can join with that and have even more impact!
• Capital campaigns. A foundational principle in capital campaigns is that the final, public phase of the campaign doesn’t start until at least 80 percent of the funding is secured. This way, the messaging to the broader public takes on a very momentum-building perspective – help us finish this campaign!
• Avoiding paralyzing statistics. We’ve talked before about the detriments of painting a picture of an issue that seems virtually unsolvable. Some might think that the sheer size of a crisis motivates people to action, but more often than not it paralyzes. What can my gift really do to solve this problem? It’s important to focus on the next win we can have, rather than the entire issue that will take years to tackle.
• Encouraging giving as a community act. One way we can help people feel a sense that they are close to the goal is to talk about how they will be joining with others in the effort.

What other examples come to mind of Goal Gradient Hypothesis in action for you?

I’m amazed by the generous outpouring by Americans in response to the Haiti earthquake last month.

What can nonprofits learn from the Haiti response that will translate into success for the rest of the year?

I’d like to take a minute to look at an article by Peter Schoewe about the fundraising outlook for 2010. By looking at his predictions in light of the Haiti earthquake, you can sharpen your fundraising over the next 11 months.

Read more of 2010 fundraising outlook: lessons from the Haiti response.

Webinar: Top Fundraising Trends in 2010

Download Slides (PDF)

Presented by:

• Steve Woodworth, President, Masterworks
• Dave Raley, Director of New Media, Masterworks

Who should watch?

• Those intrigued (or overwhelmed) by how fundraising continues to change.
• Those interested in learning more about the latest trends.
• Those in roles responsible for fundraising and marketing/communications, as well as in general positions of leadership.

It’s a new decade. If you’ve been in the nonprofit fundraising business for any length of time, you know the 2000s were a decade of unprecedented change for nonprofits. So what do the 2010s have in store?

We’ll look at both micro- and macro-trends, from the role of social media in the fundraising mix and the increasing importance of mobile marketing, to the value of taking a relationally oriented view of donors (something we call Donors For Life®) and other long-term trends you need to be aware of.

At the end of this webinar, you’ll:

• Know the key trends to watch in 2010.
• Understand how you can tap into these trends as appropriate for your fundraising mix.
• Act on practical recommendations to stay on top of these trends in 2010.

At Masterworks, we’re committed to helping you maximize your Kingdom impact. That’s why we’ve put together this enlightening and practical webinar – for you!

Just in case you weren’t tired of disaster fundraising case studies, read this blog about the sophistication/integration of the Red Cross’ effort at http://www.theagitator.net/communications/a-living-case-study-on-dealing-with-disasters/.*

I’d like to call one thing out in particular – this video:

http://www.youtube.com/watch?v=PZf8MRYasss

There are a couple things I want to call out about this video:

• The video was up within FIVE hours of the quake – incredibly fast.
• The video is obviously incredibly rough (handheld camera? sticky notes on a giant map? talk about low production value…)…
• …and incredibly effective. Over 1 million views, and an average rating of 4.5 out of 5 stars.
• Also note the embedded donate link at the 12sec mark.

This is not to say all successful online videos should be this roughly shot, or over 5 minutes long. If anything, this points out there aren’t hard and fast rules about what makes a successful video – it really is dependent on the situation at hand.

Check out another video put up just a few days ago by the Red Cross – also a good example of the right use of video for the circumstances.

* By the way, the latest from the Chronicle of Philanthropy is that the Red Cross had raised approximately $153 million through last Friday 1/25.

“…in an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it” – Herb Simon, 1971 [emphasis added]

Talk about poverty of attention! There are hardly even words to describe the sheer “wealth of information” that exists in 2010 compared to the information available when Simon wrote this in 1971.

Think about your own life. How much information do you consume today compared with even five years ago? How many emails, tweets, blogs, videos, pictures, news feeds, radio shows, TiVo’d television shows, magazines, and books do you consume. It’s mind-bending – and headache-inducing!

We are attention poor as a culture. Attention is a commodity. There is even an entire field around the economics of attention.

So what’s a fundraiser to do? A few things:

• Recognize that attention is precious. The first step is to acknowledge the importance of your constituents’ attention. There is a reason we use the phrase “pay attention.”
• Demonstrate relevance. Consumers today demand relevance in every communication they receive from companies. In turn these same consumers are your constituents, and they won’t stand for irrelevant messaging from you.
• Integrate messaging. It has been shown that in the presence of a multitude of options, people will gravitate towards the message repeated most often (in addition to seeking peer input). This is just one of many reasons to ensure that your messaging is integrated.
• Offer choice. If attention is precious, recognize that not every message you have or channel you communicate in is something every person cares about. Allow constituents to choose the types and frequency of communication they receive.
• Engage in conversation. Social media has enabled organizations to engage in conversation with constituents at a deeper level than ever before. Seek opportunities to engage meaningfully with constituents.

What else do you think is important to do in an attention economy?

As you’ve no doubt seen and heard, the American Red Cross has raised over $20 million in their mobile campaign in support of Haiti. This represents over 2 million $10 donations, a truly unprecedented feat in mobile fundraising.

Read more of Mobile giving’s coming out party

1/25/10 UPDATE: The Senate passed the bill as well, and President Obama has signed it into law – http://www.accountingweb.com/topic/tax/obama-signs-hr-4462-making-haiti-donations-deductible-2009-tax-returns.

Today, the House of Representatives unanimously a bill that allows individuals who make donations to victims of the earthquake in Haiti to claim an itemized charitable deduction on their 2009 tax return instead of having to wait until next year to claim these deductions on their 2010 tax return.

See the full press release at http://waysandmeans.house.gov/News.asp?FormMode=release&ID=996. [Updated Link: http://waysandmeans.house.gov/press/PRArticle.aspx?NewsID=10955]

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