How Do You Fund Political Innovation?

by: kfalk

Wed Jul 25, 2007 at 10:46


( - promoted by Mike Lux)

New Progressive Coalition and Democracy Alliance have both sent very thoughtful and interesting responses to my recent post on bloggers and donors, and I encourage folks to read them and respond. I like both of the posts a lot, and I think their ideas about how to move forward are useful. I have also gotten a lot of other constructive feedback from individuals in the donor, and plan to do another post soon on this topic. -Mike

In response to Mike Lux's recent post "Bloggers and Donors":

"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."

We couldn't agree more that it will take a different kind of strategy and patience to see real political change. The New Progressive Coalition (NPC) exists to solve some of the challenges of this broken, political capital market by helping to cultivate a new generation of progressive donors that want to be more strategically engaged in politics.

"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.'"

NPC has spent the past year developing our proprietary Political Return on Investment (PROI)™ framework. This framework quantifies data submitted by organizations across the sectors that make up a political movement, an approach aimed at breaking down traditional issue silos and encouraging political innovation. The metrics and indictors developed for the PROI™ framework were evaluated and rigorously tested by a group of leading political investors and organizations.

So how does someone measure the impact of their donation to a think tank or a blog? The PROI™ methodology delivers a greater transparency so that donors feel more comfortable investing in innovative political organizations and are able to understand the impact of their political contributions. It also allows organizations to better articulate the value of their work and gain insight into the process of how investments decisions are made.

NPC will be using this unique PROI™ framework as the methodology behind our flagship product which we will be launching this fall. We continually keep our supporters updated on our product releases through our monthly Marketplace Report. We also send out occasional updates on how to contribute more strategically through products like our Investor Guide to Not Reinventing the Wheel and our NPC Sector Brief on Idea Generation & Dissemination.

"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."

Yes, the traditional major donors of the world are clearly overloaded with requests for donations and many are tired of being treated like ATM machines. The Democracy Alliance is doing an excellent job at engaging this group. NPC operates with a network philosophy and believes that it will take a variety of solutions to solve our complex political challenges. Our focus is not on these traditional major donors, but instead on growing and engaging a new generation of political donors.

"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."

While the majority of the current funding comes from this small group of donors, there is a new generation who wants to become involved (or has tried to be involved in the past) but isn't being spoken to or engaged in a way that resonates with them. They are overwhelmed by too much information and don't have a strategic way to make decisions beyond getting recommendations from their friends.

By helping this demographic target their political and charitable time and money more effectively, we can engage and grow this new generation who can fund political organizations based on their merits and not just whether or not they have the right rolodexes.

Kirstin Falk
CEO, New Progressive Coalition

kfalk :: How Do You Fund Political Innovation?

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where's the output? (0.00 / 0)
Can you explain PROI?

More on PROI™ (4.00 / 1)
Great question, Matt.

The Working Group defined Political Return On Investment™ (PROI) as "the value created by a political entity relative to the investment required." Because individuals seek different types of political return, NPC's PROI™ framework enables people to identify organizations based on their specific interests as donors.

NPC's PROI™ framework captures the political value of an organization, and in a sense, makes the invisible, visible. Too often, the impact of progressive organizations is only measured by election outcomes. As a result, the important work of organizations is frequently overlooked, especially those not directly involved with electoral politics.

For example, how can we understand the PROI™ of a blog? How can the political value of a blog be measured and made visible for donors to understand? The PROI™ framework highlights this work through a combination of qualitative and quantitative information.

NPC's PROI™ framework quantifies data across the six sectors that comprise a political movement: Advocacy/Organizing, Electoral, Idea Generation/Dissemination, Infrastructure/Capacity, Leadership, and Media.

Some blogs, for instance, can be considered part of the "Idea Generation/Dissemination" sector since they are necessary to the development, dissemination, and adoption of strong and credible progressive ideas. The Working Group identified the following metrics to articulate the PROI™ of the "Idea Generation/Dissemination" sector:

1. Reach
2. Adoption of idea/impact on legislation
3. Change in perception/awareness/support
4. Influence
5. Cost

We are currently developing an online product to make it easier for individuals to find the organizations that meet their political interests.

Alison Koler
Marcom Manager
New Progressive Coalition


[ Parent ]
Funding of Open Source Projects (0.00 / 0)
I'd also like to see NPC look into funding of open source projects that develop tools political grassroots and issues groups need and use.  All of the following areas I'd recommend:
  • Membership management tools.

  • Fund raising/on-line contribution tools

  • Voter contact tools

  • Public sources of voter data (i.e., cleaned up, enhanced voter files

There are a number of excellent projects in these areas, and almost all of them are really scraping for money.  Part of the problem here is that these tools benefit many organizations, but require more funding than any one or two organizations can contribute.  NPC could do a significant service by "bundling" organizations that need these tools, and acting as the point of contact for developers to create accountability and to make sure that the tools reflect the needs of the organizations NPC represents.

This is a distinct "hole" in the market, and could do a great deal to make better tools available to this sector at much lower cost than the largely proprietary systems used today.


RE: Funding of Open Source Projects (0.00 / 0)
"There are a number of excellent projects in these areas, and almost all of them are really scraping for money."

You're right, mbayrob, many of these important infrastructure projects are not being funded. The majority of progressive political money goes to candidates while many of these long-term capacity-building projects are ignored. NPC's PROI framework™ measures the political value of progressive organizations so that donors don't have to rely on election outcomes as the only way to understand their political return on a contribution.

NPC does not directly fund projects or organizations. Instead, we provide donors with the products and services so that they are able to contribute to politics based on their specific interests. For example, a donor who is interested in how technology can be used to build progressive infrastructure can use NPC's products and services to identify organizations doing this type of work.

Alison Koler
Marcom Manager
New Progressive Coalition


[ Parent ]
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