Bloggers And Donors

by: Mike Lux

Mon Jul 23, 2007 at 13:43


There is a great deal of conversation in the blogosphere about why Democratic and progressive donors don't do more to support this movement. Bloggers are justifiably proud of the incredible added value they've brought to Democratic/progressive politics in the form of breaking important news stories that the media has ignored, shaping the debate on major issues that nobody else has done, identifying candidates early on that the Democratic establishment was ignoring and helping them go on to victory, recruiting tens of thousands of new volunteers for Democratic candidates and raising millions of dollars for the Democratic Party and progressive candidates. Bloggers have revitalized the Democratic Party and progressive politics, and yet for the most part, they are ignored by its major donors.

I wanted to share my perspective on this, as someone who knows and has worked for many years with people in the donor community. I believe that bringing these donors into a mutually beneficial relationship with the progressive blogosphere will happen, but that it will take a different kind of strategy and some patience before things change. I am optimistic over the long term, because for all their differences, the big donor community and the blogger community have one big thing in common: candidates and groups all too often look at them as ATM machines, rather than valuing their ideas and strategic thinking.

Here are the barriers I see to the relationship:

Mike Lux :: Bloggers And Donors
First, I think it is important to understand the frame of references donors are living in: anybody who gives a lot of money to good causes has a huge target on their back. I was once, about 10 years ago, visiting one of my dearest friends in the donor world, a legendary force of nature named Bernard "B" Rapoport. B has given away millions of dollars a year, for many decades now, to Democratic causes, progressive think tanks and advocacy groups and to educational institutions to help poor kids. I got to his hometown of Waco, Texas late in the afternoon, and went to his office to hang out with him before going to dinner with he and his wife, Audre. In the hour I was with him in the office, he had eight phone calls. One was related to his business, the other seven were from people asking for money. Among that seven were six from politicians, including Tom Daschle, Dick Gephardt, Tom Harkin and Ted Kennedy. The one that wasn't a politician was from another major donor friend, whom B had just gotten to give a big check to a favorite cause of his own, who was calling to ask B to return the favor.

This is the life of a big donor. They get hit up constantly by just about everybody they know, including big name politicians, other donors, celebrities and heads of well-known organizations on a very regular basis. All of the folks asking make their strongest possible pitch as to why their campaign, or other candidates they are supporting, or their organization is the best thing since sliced bread.

I'm not telling you this story to make you feel bad for the donors- they have all the money they need and get stroked constantly by famous and important people. I'm telling you this to give you a sense of the marketplace you are operating in. These folks can't say yes to everyone who asks and everyone they say no to thinks they are cheap bastards. And if two people are on the line, and one is Ted Kennedy and one is someone you have never heard of, most folks will take Ted Kennedy's call.

Another key thing to understand about the donor community is the typical demographic profile. They tend to be older, they tend to be extremely busy and they tend to have staff people (either for their work or for their philanthropies) hand-feeding them things to review: not exactly the profile of your average blog reader. Most of the donors I know have at least heard the phrase "blog", but few of them have read any of them, or understand what they are or how they work. They certainly don't know the extraordinary things the progressive blogosphere has accomplished in the last few years.

The final thing to understand is the giving patterns of the big donor community. They are used to giving to (a) candidates, (b) party committees, and (c) organizations such as think tanks or issue advocacy groups that focus on the issues they care the most about. They are not used to giving to individuals or websites, and frankly, they aren't used to giving to broader strategic initiatives that help the broader progressive community. And it takes time to change giving patterns: most donors don't just randomly decide to give to whichever suitor they like the most on a given day. They have a yearly budget for their giving, and they tend to give the lion's share of their money to the groups and candidates they have given to in the past.

So there are some mountains the blogosphere needs to climb, but I don't think they are insurmountable- I think of them as more Appalachian-size mountains rather than the Himalayas. We just need a good path. Here are my thoughts on strategy going forward:

1. Build a constructive relationship with those in the donor world trying to change giving patterns. Like I said, none of this is easy, and the attempts so far to get donors to be generally more strategic in their giving have been an adventure, to say the least. But I think engagement in this arena is important.

One of these projects was started by Silicon Valley venture capitalists Andy and Deborah Rappaport, called the New Progressive Coalition. It has been trying, in its words, to help donors "make smarter decisions and improve the quality of your political and social engagement." I was very involved in discussions in the early days of this project, helped them launch, had even agreed to be on their board, but was frustrated with some communications breakdowns and ended up not getting involved. However, I still try to stay in touch, because Andy and Deborah are friends, and because NPC has some worthwhile ideas, values, innovation (always a good thing), and their hearts are in the right place.

They've had a bit of a rough start, had at least one major restructuring, and it's not clear to me what they have accomplished of substance yet. And I frankly haven't heard much from their Executive Director Kirstin Falk lately, so I don't know what is percolating within their walls. I know some bloggers have stayed in touch with Kirstin, though, and that is a good thing, because experiments like this should be encouraged, bloggers being in dialogue with the donor community should be a constant thing, because sometimes ideas get sparked and turn into something of real value, and the folks at NPC are very open to creative and innovative ideas.

The other big project worth mentioning here is the Democracy Alliance, which has gotten a lot more notice than NPC because it's a bigger donor network that has moved serious money out to progressive organizations. The Alliance has also had a challenging beginning, including hiring a CEO out of McKinsey who didn't get politics very well, and as a result, didn't last very long. The Alliance has received a lot of criticism in some quarters (including the blogosphere) for funding too many safe, traditional, already well-heeled groups, and for being too centralized and mysterious in its approach.

I should disclose here that a lot of Democracy Alliance members, including much of their board, are friends of mine; that I have done a little bit of consulting work for them; and that several groups that I am on the board of, or am close to, have gotten money from them. So I have several biases that lead me to wanting to give them the benefit of the doubt. But here's my thinking: in spite of their problems, I think there is great potential for good coming out of the Democracy Alliance, for the broader movement, but also specifically for the blogosphere. I say this because, for all their support of well-established groups (which, by the way, there is nothing wrong with- there are some great groups they are helping), the Alliance has already begun to change American politics by making major investments in new and innovative entities like Progressive Majority, the Center for Progressive Leadership, CREW and Catalist. They have also already moved serious money into internet activism through supporting ProgressNowAction (based in Colorado) and Robert Greenwald's Brave New Films.

They haven't yet begun to support the blogosphere in a big way yet, but I believe that will change. The barriers I mentioned earlier to donors supporting bloggers, such as being inclined to support organizations rather than individuals, have been barriers for the Alliance as well, but I think if the movement can both be strategic itself regarding how to take down those barriers, and engage in honest dialogue with Democracy Alliance donors and staff, I believe real progress can be made over the next couple of years.

2. Create, or work with, organizations willing to support bloggers. Given that donors are much more comfortable giving to organizations than individuals, we need to develop a strategy for getting the blogosphere resources through organizational entities. There are two ways of doing this:

(a) The first and quickest is to work with existing progressive groups that are open to working with the blogosphere to create joint programs that help the organizations in their outreach to bloggers, and get bloggers the financial support they need to keep doing their great work on issues that the groups care about organizations and bloggers can then go to the donor community together to pitch these ideas to them.

One of the reasons Matt, Chris and I formed OpenLeft.com was to be a bridge to existing organizations, and to the donor community. We have had a series of great conversations with folks in both camps over the last couple of weeks, and I think that this kind of joint fundraising approach has a lot of potential.

(b) The second approach is to begin to build our own organizations that are in existence to build the progressive blogosphere. The Center for Independent Media and the New Organizing Institute are great examples of groups formed in the last couple of years that serve and assist the broader progressive blogosphere. And Joel Silberman is working with DailyKos and Firedoglake on some creative new organizational ideas. But we need more groups- formed of, by and for bloggers- that can raise money from the donor community, and move it to bloggers in the form of writing fellowships, health insurance, training, and travel to conferences.

These organizations must have structured accountability, both in terms of accountability to the blogging community, and in terms of accountability to the donors giving the money. And they have to have legitimate plans, budgets and timelines that show that they money given will be a true value, resulting in tangible accomplishments for the broad progressive community.

3. We need to look for venues for relationship-building. There are a lot of really good folks in the progressive donor world, and I think a lot of them will be interested in building relationships with bloggers. What folks in the blogosphere have to figure out is venues for such interactions to take place.

One of the things we plan to do at OpenLeft.com is to be involved with organizing different kinds of events where bloggers and progressive donors are both invited and involved.

4. The movement needs to show its long-term, tangible value-added to donors. A pitch to donors needs to be more than "we're really good people, and we do lots of great things, and we don't have enough money." Many people coming to donors for money can and do make those claims and this is an incredibly competitive environment. If you want real money to start going from the donor community to the progressive blogosphere, there need to be proposals that show what tangible, significant benefits are going to flow to progressive candidates and causes in the future. If you can make a strong case along those lines, you are going to start getting a lot more "yeses" to requests for money.

I understand how hard it is to show patience and lay foundation blocks for the future when you are broke and have no health insurance. But engaging the big donor community will take time and patience. People like me, who have known folks in the donor community for a long time and also understand the value of the progressive blogosphere, can be a bridge to this community, but it's not like just turning on a spigot. There needs to be a serious, thoughtful strategy- and then bloggers need to begin patiently going out and asking for the money, because donors don't give unless they are asked and asked with a pitch that gives them a tangible value-added proposal to give toward.

Right To Respond to this post: Democracy Alliance and New Progressive Coalition


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Target middle tier donors (0.00 / 0)
Talking about the Appalachians instead of the Himalayas, there is a middle tier of potential donors to tap for $10K - $30K. A huge problem is the lack of appropriate institutional recipients. Say you've got a 60 year old guy who has been following the blogs and commenting for years, maybe had a blog or two himself on an occasional basis. Guy is convinced the blogosphere has been the cutting edge of political change in the recent period and wants to support that. He happens to be redoing his will this summer and making a few changes. Plus his estate is that much larger. He knows financial support is critical to keep the ball in the air -- can't expect guys like Chris and Matt to go on like this forever. I know for a fact that there are people like this. Where can they go?

Fifty $20K donations still comes to a million bucks.


Engaging Middle Tier Donors (0.00 / 0)
Plebeian, youâ??re absolutely right. The â??middle tier donorsâ?? are a powerful group. Kirstin Falkâ??s post today discusses how NPC is helping these donors make effective giving decisions and growing the next generation of progressive investors.

If youâ??re interested in learning more about making strategic contributions, be sure to check out our Investor Guide to Not Reinventing the Wheel.

Alison Koler
Marcom Manager
New Progressive Coalition


[ Parent ]
Thanks (4.00 / 1)
Hi Mike, Matt, and Chris,

Thanks so much for creating Open Left and giving us the chance to get involved. Sorry I have been so busy and haven't had time to keep everyone updated on the latest developments with NPC.

I would like to introduce Alison Koler, NPC's Marcom Manager who will respond to the thoughtful post by Mike. We will also be available for comments tomorrow am.

This is a critical conversation, and we are happy to highlight our solutions. Our vision is to transform donors into investors.


Better Explanation of Blogosphere (4.00 / 1)
As someone who is relatively new to the blogosphere, I have to say that it is very difficult to figure out what it is and how it is valuable. The stereotype is a bunch of people sitting around in their underwear spouting off about various things. Unfortunately, there is a lot of truth to this stereotype -- many blog entries and many response comments are just people expressing their opinions, many of them not well thought out, many based on erroneous information or their biases or some right-wing propaganda they heard somewhere, and many filled with typos and almost unreadable grammar.

There is, of course, much more going on and much of it is really valuable. But this needs to be explained (and shown) more clearly. Do blogs do valuable research? Do they find or develop solutions to social problems? Do they do valuable education of readers? Do they mobilize people to work on campaigns or for candidates? Do they draw people into progressive politics and build community or organizations? How do bloggers/readers relate to each other? How do the blogs self-correct? How do they make decisions? All of these questions must be answered clearly. Otherwise, blogs seem too unwieldly and ineffective to be considered for funding.

On a sidenote: now that we have the web, I would really like to see progressive non-profits and blogs post their financial statements so that readers/supporters can see where the money is going. Eventually, I hope we can get the government to require non-profits to post their finance sheets. If people knew that their donations were going to pay some executive director $1 million instead of the money going to the purpose that they thought they were giving to, then they would challenge the non-profit organization or stop giving. Let's have a little sunlight on non-profits in exchange for their non-profit status.


good questions (0.00 / 0)
I think you raise a lot of good questions, and those are precisely the questions the blogosphere needs to do a good job of answering before they go to the donor community for grants. I think there are thoughtful answers to all these questions that will show bloggers in a good light. 

[ Parent ]
Bloggers and Donors: Show Results (0.00 / 0)
I posed a related version of this question tonight at TalkTuesday to Matt Stoller.  The blogosphere is great and all, but:

1.  Where's the proof that it engages people (either in quality or quantity) more than other forms of political organizing, such as grassroots issues campaigns, local elections, political campaigns, etc.?  Setting aside the stereotype of the blogger at home wearing underwear, is blogging just a different form of civic engagement?  Are all the people running and/or closely following the blogosphere the same people who would be running and/or closely following political campaigns (i.e., the base) and avoiding the face-to-face engagement with persuadable voters with which they most likely would otherwise be involved?  (I don't know the answer -- I just don't think there's a lot of hard data either way.)

2.  Maybe it's because I just read "Deer Hunting with Jesus," but I don't see the blogosphere making many inroads with swing values voters:  white, working class, middle class, suburban, exurban, rural voters who don't live on a coast and don't know Kos, but can tell you all about Dale Jr.  In fact, I bet most of them don't even know what a blog is, and at most, use the internet to e-mail their kids, do a little e-Bay trading, and track down the gun they want next.  If those folks are key to our ability to govern and refocus the domestic agenda on more populist issues, then where's the proof that the blogosphere will play a role in reaching them?  Or that it's the best use of funds for that purpose?

3.  Those of us trying to get money from donors are really being pressed this cycle to  quantify concrete results. It's not just about the quality of the message, the history of the organization, or even successes in 06:  it's about rigorous testing, control groups, accountability, etc.  It's extremely hard to isolate the blogosphere as a communication stream, and then prove that it made a difference with things like voter registration, turning out drop-off voters, and moving swing voters.  Given the hoops that more mainstream groups with a history of success are being required to jump through, I'm not surprised that bloggers are encountering difficulty. 

There's definitely a role for the blogosphere -- I just don't know how it compares to face-to-face engagement and a multifaceted communications campaigns.  I don't think it should displace them, so perhaps we should be talking about how mainstream groups can be working more closely with bloggers to create integrated issues strategies (partisan and non-partisan) that reach and sway voters better than each of us can do alone.  I'd like to think that would make a compelling case to a donor -- but who knows?


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