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	<title>Comments on: Paul Graham on startups as nonprofits and vice versa</title>
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	<link>http://blog.hecker.org/2008/04/23/paul-graham-on-startups-as-nonprofits-and-vice-versa/</link>
	<description>Trying to unite civility and truth in a few long blog posts</description>
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		<title>By: Dave</title>
		<link>http://blog.hecker.org/2008/04/23/paul-graham-on-startups-as-nonprofits-and-vice-versa/#comment-92</link>
		<dc:creator>Dave</dc:creator>
		<pubDate>Thu, 24 Apr 2008 16:28:49 +0000</pubDate>
		<guid isPermaLink="false">http://hecker.wordpress.com/?p=178#comment-92</guid>
		<description>Why don&#039;t more nonprofits follow this path (social entrepreneurship)?

I think it is a function of a needed paradigm shift among nonprofit leaders/managers regarding startups funds/mechanisms as well as a fundamental change in the structure of financing nonprofits.  I think both are happening currently:

The traditional model of financing nonprofit startups is grants from foundations.  There is a trend towards a wide base of support of citizens. (we are calling it a Citizen Base here at Ashoka).  Open source collaboration by citizens on the internet in the form of Mozilla, Wikipedia, and OpenSource software are examples of the power of a strong citizen base of support.  Out on the streets it is happening as well and we are trying to document it at citizenbase.org.

The financing of startup nonprofits is also changing.  Money is pouring into philanthro-venture capitalism.  Foundations are providing the money while these venture minded philanthropists perform the due diligence and require the business like discipline from applicants.  Even larger changes are in the works with groups like Ashoka and their Social Financial Services Initiative (http://ashoka.org/financial_services).  Citizen sector startups will have more efficient options for funding.  

So, I think, exciting changes are happening as we speak, the question is how fast will the pendulum swing and when will it reach that tipping point after which it is the norm across society.</description>
		<content:encoded><![CDATA[<p>Why don&#8217;t more nonprofits follow this path (social entrepreneurship)?</p>
<p>I think it is a function of a needed paradigm shift among nonprofit leaders/managers regarding startups funds/mechanisms as well as a fundamental change in the structure of financing nonprofits.  I think both are happening currently:</p>
<p>The traditional model of financing nonprofit startups is grants from foundations.  There is a trend towards a wide base of support of citizens. (we are calling it a Citizen Base here at Ashoka).  Open source collaboration by citizens on the internet in the form of Mozilla, Wikipedia, and OpenSource software are examples of the power of a strong citizen base of support.  Out on the streets it is happening as well and we are trying to document it at citizenbase.org.</p>
<p>The financing of startup nonprofits is also changing.  Money is pouring into philanthro-venture capitalism.  Foundations are providing the money while these venture minded philanthropists perform the due diligence and require the business like discipline from applicants.  Even larger changes are in the works with groups like Ashoka and their Social Financial Services Initiative (<a href="http://ashoka.org/financial_services" rel="nofollow">http://ashoka.org/financial_services</a>).  Citizen sector startups will have more efficient options for funding.  </p>
<p>So, I think, exciting changes are happening as we speak, the question is how fast will the pendulum swing and when will it reach that tipping point after which it is the norm across society.</p>
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		<title>By: Steve Lee</title>
		<link>http://blog.hecker.org/2008/04/23/paul-graham-on-startups-as-nonprofits-and-vice-versa/#comment-91</link>
		<dc:creator>Steve Lee</dc:creator>
		<pubDate>Wed, 23 Apr 2008 14:02:58 +0000</pubDate>
		<guid isPermaLink="false">http://hecker.wordpress.com/?p=178#comment-91</guid>
		<description>&quot;Once revenue and profit were de-emphasized the Mozilla Foundation spent its time focusing on making a great browser people would want to use, and Firefox was the result&quot;

I can&#039;t help thinking that people want to *share* it as much as use it. Viral marketing as a result of being something of great utility..</description>
		<content:encoded><![CDATA[<p>&#8220;Once revenue and profit were de-emphasized the Mozilla Foundation spent its time focusing on making a great browser people would want to use, and Firefox was the result&#8221;</p>
<p>I can&#8217;t help thinking that people want to *share* it as much as use it. Viral marketing as a result of being something of great utility..</p>
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