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Peter Deitz

Embedded Philanthropy Blog Series, Sponsored by Telecom for Charity

From the RED campaign to CREDO cellular phone service, embedded philanthropy has emerged as an innovative and scalable form of corporate social responsibility. Social Actions is convening the "Embedded Philanthropy Blog Series, Sponsored by Telecom for Charity" in order to draw attention to the practice of embedding donations to nonprofits in the sale of commercial goods and services.

Social Actions has invited leading philanthropy bloggers to respond to the statement, "Embedded philanthropy is transforming business as usual for the public good." Between May 19th and May 31st, a number of bloggers will post their responses to this statement.

As the blog posts are submitted, we will link to them below. Here are the first two submissions:

Embedded Philanthropy, URL Shorteners for Good, and Maximizing Meaning
"... I don't think that this sort of embedded philanthropy is going to in any way diminish more "traditional" forms of philanthropic action. I think it's power is that it reflects a growing desire I think we're experiencing to integrate our values with our commercial and career desicions. We're increasingly all about maximizing value and meaning - both the value and meaning we derive from the array of our experiences and the value and meaning we contribute to communities and causes we care about."
- From Nathaniel Whittemore of Social Entrepreneurship @ Change.org

Embedded Philanthropy: Does It Matter?
"... Maybe embedded giving will prove to increase the amount Americans donate to charity each year by presenting consumers with an option that makes them behaviorally more likely to donate. But for now, I have to say that I see embedded giving as an indicator that Americans have an increasing interest in philanthropy rather than as a driving force of that interest."
- From Sean Stannard-Stockton of Tactical Philanthropy

Embedded Philanthropy: Will it Ever Really Add Up?
"... I think the real question is how can we convert a new era of embedded philanthropists into passionate advocates for the causes to which they donate? If we can take the mindset of the conscious consumer and translate this kind of behavior into our giving habits, then embedded philanthropy will be more than a trend for "good." It has the potential to drive a deeper kind of philanthropic engagement."
- From Kari Dunn Saratovsky of the Social Citizens

Best Practices for Embedded Philanthropy
"... If you incorporate these best practices into your embedded philanthropy program, you would welcome and promote transparency. If you use corporate philanthropy as window-dressing, beware. The consumer public is going to figure it out and you’ll end up looking like a phony–a death sentence in today’s authenticity-adoring society."
- From Sharon Schneider of The Philanthropic Family

Embedded philanthropy
"... embedded philanthropy offers you, the consumer, no benefits, and has a couple of costs: (1) it narrows your options as a consumer (for example, you buy (RED) clothing instead of whatever clothing you want); (2) it narrows your options as a donor (i.e., the amount and recipient of your giving is determined by the company, not by you) ... Why not just buy what you want and give what you want?"
- From Holden Karnofsky of GiveWell

The Final Word on Embedded Philanthropy
"... There is at least one looming irony about embedded giving. As it becomes more embedded it may become less of a distinguishing factor for a merchant ... Remember, embedded giving is as much (if not more) of a merchandising tactic as a fund/awareness raising tactic. In this case, embedded giving could die out from its own "success.""
- From Lucy Bernholz of Philanthropy 2173

Embedded Philanthropy: A New Age of Giving
"... We are at the beginning of a new age of giving and embedded philanthropy is one of the first signs. Everyday people are starting to see and understand that regardless of the amount of money they make they can make an impact in their world. As people have started to realize this businesses are following suit allowing people to give back through ordinary purchases."
- From Jason Dick of A Small Change

When Embedded Philanthropy Works (Hint: It’s All in the Story-telling)
"... If embedded philanthropy can be used to bring more attention to important causes, maybe its rise is more than an indicator – but a potentially important tool in recruiting a higher percentage of consumers to become more active philanthropists in general. Has RED increased attention for the African HIV/AIDS pandemic? Have the ads for Tom’s Shoes increased consumer empathy toward children living in poverty? To me, those are key questions to ask – in addition to counting the dollars raised."
- From Tom Watson of CauseWired

Thank you Nathaniel, Sean, Kari, Sharon, Holden, Lucy, Jason and Tom for your thoughtful contributions. If you find these excerpts thought-provoking, please read the full blog entries and leave your comments to keep the conversation going.

We hope that this blog series will encourage interesting discussions on the state of embedded philanthropy in today's economy.

About Telecom for Charity
Telecom for Charity is a socially responsible way to procure and maintain your business' voice and data services. Our no-cost consultative services will assist you in selecting the best possible solution for your phone, internet, and bandwidth needs. The Telecom for Charity Initiative puts forth five percent of your monthly telecom spend towards whatever cause you wish to support. You can be socially responsible and improve your company's bottom line at the very same time. Join us on our endeavor to hit our first goal of donating one million dollars through socially responsible everyday business telecommunication services.

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Christine Egger Comment by Christine Egger on September 13, 2009 at 9:59am
Just caught this today -- an August 19th spot on NPR, featuring Lucy Bernholz, asking the question on the effectiveness and impact of embedded giving. One woman quoted feels annoyed that she's continually asked for donations to one cause or another at the check-out counter, but it seems to me that's her "guilt talking" -- if you felt comfortable that you were giving what you can to causes that matter to you, why would you feel annoyed at being asked to support something that matters to the people around you?

http://philanthropy.blogspot.com/2009/08/npr-interview-on-embedded-giving.html
Christine Egger Comment by Christine Egger on June 1, 2009 at 1:41pm
Well, the further into this series we go the more I have to think about... Tom Watson, of CauseWired fame, posted a blog that draws attention to, well, the attention that these causes receive and how that attention may be the most important effect of these campaigns

http://causewired.com/2009/05/29/when-embedded-philanthropy-works-hint-its-all-in-the-story-telling

After reading Tom's and Lucy's posts, I'm trying really hard to peer into a crystal ball... lets say embedded philanthropy becomes the norm... we're surprised to purchase something without the add-$2-for-this-nonprofit, or (RED)-type brand/cause attachment... Hmm, in and of itself I see no other big changes that have to come with that, no required shift in empathy, no society-wide distribution of resources that eliminates the kinds of suffering that dissipate when basic needs are being met.

But let's return in this thought-experiment to a world before embedded philanthropy became even so mainstream it had its own blog series dedicated to it. I buy a shirt-tv-phone-dinner-etc. without a reminder that someone is in need of something, and that they would benefit from my sharing my money, political power, attention with them...

Nope, don't want to return to that world. The jury may be out on whether embedded philanthropy is a good thing -- and Holden' critique above on its design, that it's inconsistent with the changes-in-behavior we wish to see, is an important one -- but I'd rather be invited to support a cause at a point-of-purchase and deal with the consquences of saying yes or no than not receive those invitations at all. Lucky for me, as Lucy says, these invitations are hear to stay. At least until they become so commonplace that the fad is reversed and we're all surprised (relieved?) to be able to buy something without having to think of someone else for a change.
Christine Egger Comment by Christine Egger on June 1, 2009 at 11:37am
Lucy Bernholz of Philanthropy 2173 has been blogging about embedded philanthropy since 2007 (she's widely credited for coining the phrase "embedded giving"). Her contribution to this series draws attention to how widespread adoption of embedded philanthropy practices could shift our expectations as consumers. It's already an indicator of the "blurring of sectors and roles between commerce, philanthropy, and public good."

"If this is where we're headed, embedded giving is not the story, or even the end in and of itself, it is simply one more way in which we can see the world shift around us."

http://philanthropy.blogspot.com/2009/05/final-word-on-embedded-giving.html
Christine Egger Comment by Christine Egger on June 1, 2009 at 10:36am
Jason Dick, on his A Small Change Fund blog, writes: "I think embedded philanthropy is the first sign of a new wave of philanthropy. The second sign starts when we, the little people, realize we can make a difference." This fits neatly between Sean's observation of embedded philanthropy as an early indicator, and Kari's post that places responsibility squarely on the shoulders of consumers to make sure these philanthropic opportunities are actually contributing to something good. Holden would argue this simply isn't possible -- there's a design flaw here, which when matched with human behavior stacks the deck against it. I'm more inclined to agree with Jason -- that this is a concern, but not insurmountable. What do you think?

http://www.asmallchange.net/embedded-philanthropy-a-new-age-of-giving
Christine Egger Comment by Christine Egger on May 28, 2009 at 4:38pm
Holden Karnovsky, on GiveWell.net, chimes in with the strongest language yet on why consumers should pass on these kinds of philanthropic opportunities. Check out the post and a linked earlier post (especially the comments) for an in-depth discussion on a consumer-centric critique:

http://blog.givewell.net/?p=387
Christine Egger Comment by Christine Egger on May 27, 2009 at 12:20pm
Sharon Schneider's post, on her Philanthropic Family blog, got me thinking too. This time, about how to encouraging corporations and nonprofits to make the very best use of embedded philanthropy methods:

http://thephilanthropicfamily.com/2009/05/26/best-practices-for-embedded-philanthropy/
Christine Egger Comment by Christine Egger on May 26, 2009 at 10:50am
Kari Dunn Saratovsky's post got me thinking about just what it's going to take for consumers (like me) to start asking for more information, more control, more participation in the giving-opportunities corporations are creating. Left a long comment there..

http://www.socialcitizens.org/blog/embedded-philanthropy-when-will-it-really-add
Christine Egger Comment by Christine Egger on May 20, 2009 at 11:38am
Sean Stannard-Stockton just chimed in on his Tactical Philanthropy blog:

http://tacticalphilanthropy.com/2009/05/embedded-philanthropy-does-it-matter

"I just don’t think embedded giving is particularly important.... However, it may be that embedded giving actually is tapping into the non-rational, behavioral characteristics of how humans make choices.... For now, I have to say that I see embedded giving as an indicator that Americans have an increasing interest in philanthropy rather than as a driving force of that interest."

Sean's post makes me think about my own choice to use a credit card that gives a percentage of my charges to a nonprofit. He's right, makes me feel good (that self-image thing), and I wonder if subconsciously I give less elsewhere than I otherwise would, because I feel I'm "doing something good" in this way. Hmmm. I like to think that's not the case, and when I consider changing credit cards it seems too weird to think of using one that *doesn't* give $$ to a nonprofit...
Christine Egger Comment by Christine Egger on May 19, 2009 at 5:04pm
Nathaniel Whittemore's contribution to the blog series just appeared:

http://socialentrepreneurship.change.org/blog/view/embedded_philanthropy_url_shorteners_for_good_and_maximizing_meaning

I agree with him, that "in some ways, it's like moving a piece of corporate social responsibility to the user side, and making it a part of the commercial relationship between the company and its client."

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