Can Social Networking make a difference for the future of philanthropy?  That's the question The Washington Post asks in a recent story focused principally on a site called Razoo. 

According to the Post, Razoo is a for-profit "company that has built a Web site to connect people with one another, much like social networking giants MySpace and Facebook, but in support of humanitarian objectives such as helping the poor in Nicaragua."

The Post also references Project Agape, that is another social networking site that lets a user "affiliate with and donate to charities."  Finally, the post noted that Steve Case's foundation (AOL) would use Facebook's Causes application to award $750,000 in grants to charities selected by internet users.

There are certainly some big numbers in terms of how many individuals visit social networking sites and how many donor-dollars these sites can or have generated.

The Post questions the role of for-profits in the nonprofit space.  Not such an important question I argue as lots of for-profits, many staffed by former nonprofit-engaged people, serve the nonprofit world in achieving their missions.

A bigger question, one I don't understand, is how do social networking fundraising sites make profits?  If advertising is the simple answer, then why don't nonprofits set these up and leave the middle-people out of the effort?

It's also unknown whether the for-profit companies can actually make enough money to sustain themselves.  The Post noted Kiva as what I would label a quasi social networking site that certainly doesn't pretend to be a for-profit.  I haven't seen their balance sheet.  Other sites were also mentioned, some reminding me of on-line versions of what the United Way use to be in terms of the go-to place for payroll deductions.

Anyway, the article was helpful and certainly should challenge nonprofits to think carefully about their web strategy especially as linked to a fundraising strategy, the relationship between the two and, the role a for-profit may play in helping facilitate and expedite success.

Thanks Washington Post!