Joi Garron is a freelance/ volunteer Graphic artist from the Metrowest area of Massachusetts. She attended Framingham State University where she received her Bachelor degree in Graphic Design and Visual Communications. Afterward, Joi continued her education by attending the 3D arts program at Boston University’s Center for Digital Imaging arts in Waltham, Ma where she received her certification in 3D animation arts. Joi volunteers as a Graphic artist and decorator/ designer for yearly company galas and functions. Also, she co-organizes the Boston Maya User’s group, a 3D artist meetup which connects monthly in the Boston area and freelances as an artist with Boston Indies groups releasing game assets/platforms for mobile devices, etc. in 2012.

Mary Cross is an experienced management consultant and marketing and business development executive. Currently the Managing Director of JKJ Associates, Inc., Mary has worked with a number of companies in the software, internet, and business services spaces. She has held senior management positions in marketing, business development, strategic alliances, and practice management. She has also held leadership positions in several non-profits and has extensive experience working with teenagers in a variety of service environments. She was Director of Strategic Alliances at Expert Central, Director of Marketing at The Bentley Group, a TSC Company, and Practice Director, Internal IT and Help Desk Practice at The Bentley Group. She also held roles as Product Marketing Manager at Palladian Software and elsewhere. Mary holds a BS Computer Science and Mathematics from Vanderbilt University and MS Management from MIT Sloan School of Management.

Ryan Flynn-Kasuba is a financial analyst at Ropes & Gray LLP. This position has given him exposure to various aspects of the financial side of a business including cash management, treasury, taxes and financial projections. Ryan has also had some experience in other aspects of the financial industry through various internships in investment banking, restructuring/financial consulting and equity research. Ryan is a co-founder and Vice President of the UMass Alumni Finance Group, a networking group for both UMass and non-UMass business professionals in Boston. He is also an active member on the Finance Committee for the UMass Amherst Alumni Association. Ryan is also a Big Brother volunteer for the Big Brothers Big Sister Program. Ryan graduated summa cum laude from UMass Amherst in the Fall of 2009 with a BBA in Finance and minors in German and Spanish.

Bobby Mills went to school at Newbury College for Business Mgt. and has worked in the mortgage industry for about 11 years before getting into Non Profit and Philanthropy. Early on, he served on the executive board for NAACP in Brockton MA, and in 2000, started his journey in the mortgage industry. He began as a loan processor, taking time to learn the business and procedures before transitioning to a loan officer position and closing more than $187 million in sales over the duration of his career. He worked with a few various companies including Homestar Mortgage & Wells Fargo Home Mortgage. His final stage in the residential market was with Maverick Residential Mortgage as a senior mortgage consultant. Then slowly transitioned and started his own commercial mortgage consultant firm in early 2007, Mills & Goldberg Financial, LLC, with a team of five consultants. He was the senior consultant and supported the entire team in self-sourcing and marketing businesses to qualify, as well as helping to qualify future loan applicants for commercial mortgages. He later closed that business in early 2010. Today, he is the creator and founder of M&G Foundation, a service that helps young adults and new entrepreneurs succeed in the business world. He is also networking with several other agencies involved in helping children and now philanthropy. Bobby realized how important it is to uphold integrity in a crumbling business world where this is not so, and his business focus capitalizes on that idea!

Yi Lin, PhD. comes from China, and is studing at Babson. Before came to Babson, Yi Lin worked for management software consulting company for several years and was also involved in two non-profit organizations, which raised his interests in philanthropy. He took the program manager role and led the program to more professional by introducting project management; In the other organization which is located in Boston, he took the project assistant and responsible for working out new initiatives and seeking volunteer resources. Both are related to child education.

Linza You comes from China and now is studying MBA in Hult Internatioanl Business School. Before came here, she worked as a relationship manager in HSBC for two years, and later worked as a talent agent for another two years. She created and conceived promotional strategies across all media platforms and generated business engagements for the talents. At the same time, she raised capital from investors, recruited production team, and managed production process music videos for them. She is now helping Hult to do some marketing thing in China, such as post blogs on forum and Chinese version twitter mirco-blog Sina. Linza always has interest in helping other people, especially poor people. She thinks Philanthropist.org work is very meaningful.

Kristofer Mondlane; graduate of Tufts University in International Relations has acted as integrated marketing consultant for philanthropist from late 2011 adding to his two year career as a marketing consultant. Before that, Kris spent two years as a business development consultant helping prominent international security contractors secure government and private contracts.

Laurent Bouzelmat is a french civil engineer. He worked for two major construction companies in France, Russia, Cuba and Dubai as a civil engineer and project manager. Laurent came to Boston to study entrepreneurship at Boston university. Laurent has experience in production management and contract management. Laurent is graduated from the Sorbonne University ( Mechanicals) and from the civil engineering school of Paris. Laurent speaks french, english, spanish and a few russian. Laurent holds a graduation from the Boston University school of management in Entrepreneurial Leadership.

Hello everyone. Glad to join the team.

The appearance of Karl Rove and his Wall Street Allies in the most recent attack ad against Elizabeth Warren clearly demonstrates that anything will be said or done in order to attempt to derail her campaign. Republicans will use millions to try to defeat her, but Elizabeth has two things money can’t buy: truth and peoples’ values. Current economic and social disparities are real. How people perceive them vary according to their values and their positions on the economic and social ladders.

Elizabeth Warren believes in a level playing field; she is deeply committed to middle and working class families’ economic health and well being.  She was an out spoken critic of no strings attached for Wall Street TARP. Elizabeth was asked to serve on the Congressional Oversight Panel and was charged with helping to hold the government and the banks accountable for how TARP money was distributed and spent.

She consistently criticized the Bush administration (and later the Obama administration) for failing to hold the banks accountable and failing to put safeguards in place to ensure that the banks used the funds to loosen up the credit market—instead of on big bonuses for top executives.

Rove’s ad has been widely criticized for being dishonest and inaccurate. 

The attack ad has been called “full of absurd distortions,” (Brian McGrory, The Boston Globe, 12/9/11);  “one of the most disingenuous and inaccurate ads of the 2012 cycle,” (Ari Berman, The Nation, 12/8/11); that “twists Elizabeth Warren’s role as a Congressionally-appointed watchdog,” (ABC News)

Elizabeth was named one of the “new sheriffs of Wall Street” by Time Magazine and was named Bostonian of the Year by the Boston Globe for bringing “a sense of sanity to the economic crisis.”

“It seemed as if the banks and other firms got a $700 billion bonanza and the American taxpayer got the shaft. But along came this straight-shooting Harvard professor to oversee the bailout, someone who pledged to look out for the middle class and brought a sense of sanity to the economic crisis. For this we give her our top honors this year.” (The Boston Globe 12/20/09)

Rove himself supported the bailout and never supported any measures to hold Wall Street accountable.

Rove said, “…if we let the banks fail the rest of the economy will fail, which is why everybody agreed let’s just step in and save our financial system, our credit markets.” (Fox News, 12/05/08)

Please find two links that help debunk Rove’s smears:

http://www.thebostonchannel.com/video/29955629/detail.html

http://www.bostonglobe.com/metro/2011/12/09/reasonchangechannel/4LNVGgrFPn6sOf96Cf8tJN/story.html

Yesterday, a Boston judge gave a two week extension to the City’s petition to evict #Occupy Boston encampment. Occupy Boston members celebrated and talked on Radio Boston, WBUR, about why their case is a symbol of a broader American issue.  The encampment, in it of itself, is a representation of what America stands for: free speech, first amendment and the right of non-violent assembly.  Will the court be able to separate the expression of this movement from the first amendment?  Does it matter if the movement has a single focus to be successful?

The Occupy movement, celebrating a two month birthday, seeks a democratic approach to taking a stand. They are a social generation which believes they can change a system which no longer works for the majority of the American population.  Fueled by the Internet, mobile technology and a social media revolution, they are bringing important social and economic grievances to the streets, parks and social networking sites across the globe. Through collaboration and non-violent civil protest, they are demanding change. Free assembly and demonstration is at the core of the occupation movement and one which is resonating with many Americans.

The movement is becoming a powerful voice which started as a small band marching through the streets; the making of a tent city is what matters most at the moment.  They believe that land and space are important symbols. They are necessary but not core to the movement. Their cohesion is in their ability to communicate across geographic boundaries and reach.  Their Facebook and Twitter feeds are keeping the fabric of a group tied closely by their love and passion of the values and principles which make it an Occupy movement. They see the need to seed the ideas of a movement beyond Wall Street and city parks. Phillip Anderson, an occupy member, would like to bring it into suburbs and living rooms across the country.  Centuries ago, community members sat in living room parlors, where they gathered, to talk and debate important topics of the day on social political, arts and theatre.

The 21^st century parlors are Facebook, Twitter and YouTube.  We have a generation of socially, economically and political conscious activists, connected, engaged and educated to the important topics of the day.  The Occupy movement just launched a web site www.wecanoccupy.org to engage more people. They are ready to represent the 99%; they want to broaden the message so those who may not make a connection to the movement or the message will agree in principle to support the right of free assembly.

It’s important to think about what an early stage of this movement has done. They are raising the level of America’s consciousness around important disparities. The encampment is a symbol, a participatory playground of democracy; Occupy Boston and the world have volunteers who are vested in the movement.  It may not sustain a long term encampment; it may mean to ask people to go back in history and start hosting events, occupy places and talk about issues close to their values. What are the issues which impact families?   The movement is encouraging discussions of broader concerns. They want people engaged and involved in community activities.  Tim McCarthy, another member wants people to understand that the encampment is just one aspect.  We have people who want to be more political, other’s who want to be more militant; we respect all voices.  At an early phase of movement it is good to diversify strategies, so people can be a part its meaning, value and message.

When we look back at history and read about the civil rights movements, we learn about the bus boycotts, sit in movements and the freedom riders.  These are historical references of good strategies to give people ways to engage in political and social movements.  This group is seeking to diversify and move out to a broader audience to influence ideas, institutions and people.  The criticism of the occupy movement is it doesn’t have a focus.  It’s a matter of debate about what they are protesting; however what we know is that they have the right of freedom of speech.

Does it matter if a movement has a single focus to be successful?  The Occupy Movement may not have one message, but they have brought attention to economic inequality, a financial and political system which is not working for the majority of the population, the 99%.

What motivates philanthropy in the United States? Can we separate the value of charity without discussing the economy, tax breaks, politics and social responsibility?   In Sunday New York Times article, A Family’s Billions, Artfully Sheltered, Estee Lauder Heir’s Tax Strategies Typify Advantages of the Wealthy,” by David Kocieniewski demonstrates the reason why we need an honest discussion about  the crisis in our social, economic and political system.   Our public leaders and local officials have failed us by not providing a measured and balanced discourse around the pros and cons of an overhaul to our current tax code.

The article gives a glimpse of economic and social disparity. From tax breaks to tax shelters to tax loop holes, protection for the wealthiest Americans  is contributing to the debate waging in Washington and in #Occupy neighborhood parks across the United States. Mr. Lauder, the world’s 362 wealthiest individual has used his influence, wealth and philanthropy . “It is entirely possible that most charitable organizations promote the public good to a sufficient extent to warrant this sort of revenue loss, however it is inaccurate to imply that these contributions are cost less to taxpayers. Everyone else faces a higher tax burden as a result of the tax savings that the wealthy receive from their charitable contributions.”[i]

Several billionaires led by Warren Buffet and Bill Gates have weighed in on the discussion “the current tax code system adds to the budget deficit and contributes to the widening income gap between the richest and the rest of society.”[ii]   Our current tax system allows billionaires like Mr. Lauder to shelter much of their wealth.  For example, one tax shelter allowed Estee Lauder Company to avoid as much as $10 million in federal income tax for years.  In 2014 the company is scheduled to pay taxes on $72 million dollars but as the article reports, many accounting maneuverings will defer the payments.

Another shrewd tactic, used by the wealthy, to prevent paying taxes is called, ‘hedging technique.’  A complicated stock game and “under IRS rules, at the time the Lauder family avoided paying $95 million in capital gains taxes.  This technique was used ‘so aggressively’ by this family that the US Congress amended the law and ultimately, the family paid only a portion of the millions in stock from the ‘hedging technique.’

U.S. tax laws protect the wealthiest U.S. families. At the time of Estee Lauder’s death in 2004 her heirs inherited $4 billion which was taxed at 16%.  In addition, U.S. laws also protect companies’ capital. Case in point, Estee Lauder is worth $600 million; however nearly $400 million is used to secure lines of credit. “It’s a practice which is not generally used by a principal share holder but in this case it’s a way for wealthy stock holders to get cash out without having to pay taxes. Significant portions of Mr. Lauder’s inherited stock are held in family trusts, which reduce the ultimate estate tax.”  [iii]

Mortgage interest deduction is another tax shelter which few average Americans can take advantage.  “Household with more than a $1 million in income claimed more than $27 billion in such deductions from 2006-2009. Some of the wealthiest are also deducting mortgage interest on their yachts.”[iv]. Another little gem of the U.S. tax code is that there is no limit on the amount of property tax that can be deducted.  For one of his many properties, Mr. Lauder pays $400 thousand in property tax each year on his Palm Beach mansion which he can deduct from his taxes.  “This welfare for the well-off costing billions of dollars a year-is being paid for with the taxes of the less fortunate, many of whom are working two jobs just to make ends meet.” [v]

Charity or tax breaks?  This month Mr. Lauder was recognized with the Carnegie Foundations Medal of Philanthropy award for those people who are extremely generous and give generously to charities. What many are not aware of is that art collectors who offer their work to museums up until 2006 were able to take a deduction for donating a portion of their act collection.  “The tax code shouldn’t allow the wealthy the kind of loopholes that let them, essentially, force other tax payers to underwrite donations to their pet causes.” [vi]

Mr. Kocieniewski, NYT article clearly demonstrates a deep social and economic divide which continues to widen as a result of a system in crisis.  Over the weekend, on Meet the Press, Grover Norquist, President, Americans for Tax Reform, praised the no new tax pledge which includes closing tax loop holes for the wealthy. The Bush tax cuts are set to expire at the end of 2012. President Obama advocates to the keep the tax cuts for working and middle class families while letting them run out on the wealthy.

Sixty minutes showed children who are living in cars in the streets, not far from the mansions in Florida. The economic divide creates Invisible People, those who are not as lucky as Mr. Lauder to be born into wealth and privilege. These are the people who are born into generations of laborers, working class who have lost their jobs, homes and the American dream.  They have slipped below the radar screen; they are now one of the 49.1 million Americans living in poverty.

As the Republican debates continue, a pledge led by Mr. Norquist which is supported by the majority of Republicans refuses to budge on reviewing the current tax code.  Yet, elimination and deep cuts are on the table for current entitlements programs for the elderly (social security payments and Medicare) the poor, (Medicaid, welfare and food stamps) and the military (military aid). Many Americans are questioning how paying into social security, unemployment benefits and serving in the military are considered entitlements. Republicans are protesting big government and purging departments such as education, energy and commerce.

What is the social and moral responsibility of a society to care for its people, young, old and infirmed?  Political leaders are able to advocate cuts in economic, education and social programs for the poor while standing up for the wealthy.  They are preventing a portion of the population from paying their fair share at the expense of working and middle class families. How we justify a system which has cut the taxes of the very wealthy (In 1957, tax rate for top earners was 90%, in 1978 tax rate for top earners was 70%, today top earners tax rate is 35%)?  Americans have a choice- do we continue tax breaks for the wealthiest Americans on the backs of working and middle class families? Or do we demand a reasonable, rational approach to the tax code?

[i] Inspired? Read more:
http://feedproxy.google.com/~r/beat_the_press/~3/9keQXESN1dw/the-philanthropy-of-the-rich-does-have-a-cost-to-taxpayers#ixzz1f0X3NaAj

[ii] http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&scp=1&sq=A%20Family%27s%20Billions,%20Artfully%20sheltered&st=cse

[iii] http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&scp=1&sq=A%20Family%27s%20Billions,%20Artfully%20sheltered&st=cse

[iv] [iv] http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&scp=1&sq=A%20Family%27s%20Billions,%20Artfully%20sheltered&st=cse

[v] [v] http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&scp=1&sq=A%20Family%27s%20Billions,%20Artfully%20sheltered&st=cse

[vi] [vi] http://www.nytimes.com/2011/11/27/business/estee-lauder-heirs-tax-strategies-typify-advantages-for-wealthy.html?_r=1&scp=1&sq=A%20Family%27s%20Billions,%20Artfully%20sheltered&st=cse

The parent company for American Airlines, the nation’s third largest carrier, filed for bankruptcy due to high labor and fuel costs and operating in a volatile economy.

American was the world’s biggest airline as recently as 2008, but has fallen behind United and Delta after those two companies bought other airlines. Hopefully filing for bankruptcy will actually allow them to significantly restructure debts and refine labor contracts to achieve better numbers.

It was reported that booked flights are secure, as American said it would operate its regular schedule and honor tickets and reservations. But American could reduce its number of flights and that could mean that not all routes would continue indefinitely. This can be a problem for frequent fliers who own thousands and millions worth of points because what is the point if AA cannot provide the routes fliers need or want to travel on. With American Airlines filing for bankruptcy, does this also mark the end of cheap air travel?

Each week, we look for inspirational stories which promote social entrepreneurship, giving back to communities and fostering philanthropy throughout the world.  May this story bring a smile to your face. Two social entrepreneurs, Alexis Miesen and Jennie Dundas, envisioned “eventually” starting a non-profit in line with their general business mission of “being good for the community, near and far.” Two business woman who own, Blue Marble, an eco-conscious, organic ice cream boutique in a neighborhood in Brooklyn, New York City, had a vision for a self-sustaining business which is able to spread to communities across the globe.

The idea was, “ bring an ice cream parlor to a community anywhere in the world where people can come together in a neutral space and have an informal conversation,” “Informality creates the ties and networks of communities that Rwanda so desperately needs to create.”   These are the types of stories that leave a warm feeling in your heart and a smile on your face.  Even in dark times, a bright light, a beacon of hope, love and generosity finds its way into a community.

Inspired? Read more:  http://www.time.com/time/world/article/0,8599,1997330,00.html

Seventy-three percent of 343 small business owners surveyed, report using social media for personal use; however few use it for their business.  What prevents business owners from using social media in their industry to connect, engage and listen to their customers?

51% fear sharing sensitive information
44% fear ‘information overload’
67% hold back investing in social media because they don’t know where to begin
50% too much information to manage

Today, savvy consumers are seeking businesses which not only have a social media presence but are willing to engage with them, provide incentives to frequent their venue(s) and reward them for bringing new customers. The convergence of the Internet, a content driven engine, social media, platforms which connect people is uniting the virtual world with bricks and mortar establishments.  Mobile technology and location-based applications are the driving force behind a generation which uses smart phones to connect and engage with family, friends, companies and brands.  Social media provides small businesses an opportunity to reward loyal customers while making new ones. Customer expectations and the social component of social media are shaking up traditional business models.

What makes social media so powerful? Social media core principle and set of values: authenticity, transparency and accountability, is about doing well while building relationships, providing value and giving people reason to engage with you and purchase from you. Social media demands legitimacy, truth and genuineness.  The very nature of social engagement requires transparency and accountability. It’s about being authentic, building a community, connecting, engaging, helping, asking and giving. People want to know you, like you and engage with you before they are willing to purchase from you, especially over the Internet.

It’s only a matter of time that those businesses which neglect to claim their venue(s) and engage with their customers over the Internet and social media sites will not exist. Small business owners who do not embrace the technology are missing out on opportunities to listen and respond to potential customers who have the power of word of mouth and willing to share it with a thousand of their closest friends.  Those businesses which use social media solely to sell and market are missing the point.

Bricks and mortar businesses which value the principles of social media, tap into their business community, listen to market influencers and respond by providing incentives to draw customers in to shop and rewards loyal customers will benefit from designing and implementing a social media strategy.

Consider the value you bring to the community and create specific messages to convey it to your audience. Generate a list of key words and statements which illuminate the values of your business.  Next create a virtual shingle so that customers can easily search and find your business.  Identify and optimize your digital foot print by claiming your business on the Internet and social networking sites such as Google, Yelp, and Trip Advisor. Make sure to invest in a blog and social media channels, such as Facebook, Twitter, LinkedIn and YouTube.

Once business accounts are claimed, connect them to your business web site.  Make sure to state the ‘call to action.’  Join our mailing list; follow us on Twitter, like us on Facebook to receive updates and loyalty discounts.  One example of a successful social media story includes a local bakery, Bread and Roses Bakery, in Ogunquit Maine.  After establishing the social media channels for the bakery, an announcement was sent to their customers to let them know that Bread and Roses was going social.  Bread and Roses customers in a newsletter were asked to:

1.       Like Bread and Rose’s website and FB business page.

2.       Join Bread and Roses email list, and follow the bakery’s blog.

3.       Use Twitter and YouTube to take advantage of the bakery’s online presence.

4.       Follow the specials, bakery products and the happenings in the kitchen and store.

5.      Check-in using Yelp, Facebook or Foursquare receive 10% off any purchase.

6.       Write a review on Yelp and or Trip Advisor.

7.       Posts updates, pictures and videos of customer testimonials in the store on to the bakery’s Facebook, You Tube and Twitter to generate buzz and word of mouth.

The results were positive!

A little bakery in Southern Maine claimed their business on social media and began an engagement campaign letting their loyal followers know that they took a leap of faith and established a virtual presence.

What they did not expect was the overwhelming support of their seasonal and loyal customers.

One surprising result, a group of customers, who usually frequent a competitor down the road, saw Bread and Roses social media specials, each time they checked-in via Foursquare, Facebook or Yelp; they received 10% off their purchase.  For the remainder of the season, those customers frequented her establishment daily which translated into an overall increase in her revenue from the previous year.  This new business was a direct result of her social media engagement and campaign(s). Bread and Roses Bakery owner, Mary Breen, embraced the underlining principles of social media, do well, give back. She insists that the buzz in the bakery spilled over onto her social media sites.  She said she sold more pies this Thanksgiving than any other year, a total of 375.

Visit Bread and Roses Bakery YouTube channel to listen to happy customers from all over the world who frequent a seasonal bakery.

Over the last year, I have used Foursquare both, as a consumer and as a business to help my clients establish their venue and run campaigns to drive new business and reward loyal customers.  The concept is Foursquare is a location based function which can be down loaded on your smart-phone.  When consumers check in using Foursquare , it provides a list of the businesses in the area.  In some cases the business has a little orange Special icon.  When one clicks it on, it unlocks a special.simple; however for businesses the execution is not.  There lies my ambivalence with this company and their application.

For example, while at a mall or in center of a town, one can take out their smart phone check in using Foursquare and receive a list of businesses in the area.  A local bakery is offering a free cinnamon twist as a first time check-in.   One can go into the bakery, check-in and show the person behind the counter the unlocked special on the phone and receive a free cinnamon twist.  A savvy business owner sets their cash register to reflect social media discounts and what else is being purchased with the special.  This way they can monetize the investment of ‘giving  away’ or discounting  items.  We believe that smart business owners who reward faithful clientele will create a community of fans who keep returning with friends and family.

Here’s where it gets interesting.  In real time, the person who just received the free cinnamon twist at the bakery can let friends know on Facebook and Twitter they are at the bakery,  received a  free cinnamon twist, if friends are in the area, they can join in on the special.  However, if they have checked in before they will not receive the cinnamon twist free, but after a third check-in they may receive 20% off a $10 or more purchase. Businesses which have a physical venue are able to claim their establishment on Foursquare and begin to offer a series of specials to give incentives for customers to shop at their venue.

Getting back to the bakery example, the owner of the bakery can also log into Four square where they interact with a business dashboard which displays information about customers. Foursquare displays the total number of people who have check-in, the % of male, female users, their social reach on Twitter, Facebook, the number of times they have come to your store.   Business owners who implement a loyalty program can integrate and attach the sales to the customer.  Next time the person checks in to the neighborhood, the bakery can send a directed message to the customer saying, “we see you are in the neighborhood, stop by and receive 10% off your next purchase.

Foursquare brings venues, friends, family together, rewarding new and loyal customers.  The problem with the process is as a small business owner who works with other small business owners on their digital presence and brand, Foursquare makes it next to impossible for business owners to easily claim their venue.

Foursquare to be a viable business must figure out another method for claiming business.  Right now, the process appears to be seamless until you actually use Foursquare to locate the business and try to claim it.  Two ways to claim the business either by phone or U.S postal, which means if the phone number does not register with Foursquare, for whatever reason, you now have to wait for snail mail to deliver your confirmation number.  No specials or engagement until you can unlock your business.   For a consultant who goes into the businesses to set them up, it’s a night mare!  Many business owners do not have the time to learn or engage with the technology.  The value that my business adds to their existing business is the ability to digitally brand their business, tie it to a location based application like Foursquare to drive new business and returning customers.   The window of opportunity to convince business owners to claim their venue is short, when the system doesn’t work, it closes immediately!  In some cases, it impacts their overall decision to go social and implement social networking tools.

Over the course of the last week, this consultant went to five venues and was only able to claim one.  Two out of the five phone numbers, although registered as the official business phone number on Google and in the phone book, Foursquare did not accept it.  In one venue the phone actually rang, but did not give the code; it stated there was a problem but did not elaborate.  As a veteran technology consultant this experience is unacceptable and gives not only consultants a bad image, it doesn’t do anything for integrating technology into bricks and mortar, it also does not bode well for Foursquare.

After sending and receiving email back and forth, unable to talk to a person in real time, a week later I am still unable to claim two businesses. Foursquare, you need to rethink your business model; right now you have lots of customers checking in, yet  few businesses are engaging with them!

On Capitol Hill this week with overwhelming bi partisan support (407-17 vote,) the Entrepreneur Access to Capital Act was passed. The convergence of innovation, social media, social entrepreneurship and the power of individual investing came together. Crowd-funding, which allows business, social entrepreneurs and start-ups to receive small-dollar financial backing for projects from large numbers of donors.  “In short, the bill allows entrepreneurs to finance startups and small businesses by crowd funding — bankrolling their activities by soliciting donations through online sources without having to comply with many federal restrictions or register with the Securities and Exchange Commission.”
http://www.hispanicbusiness.com/news/2011/11/14/bill_open_door_to_crowdfunding.html

The bill exempts securities from registration requirements if the cumulative amount raised through the issuance is $1 million or less.  Each year ($2 million or less if the issuer provides investors with certain financial information;) and each individual who invests in the securities does not invest, in any year, more than the lesser of $10,000 or 10 percent of the investor’s annual income. http://www.gop.gov/bill/112/1/hr2930. What does this mean for crowd-funding, social entrepreneurship and venture philanthropy? We start by gaining an understanding of the terms and their meaning.

Crowd-funding http://en.wikipedia.org/wiki/Crowdfunding , “(sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding occurs for any variety of purposes^[1], from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business^[2] or creating free software.”

Social entrepreneurship http://en.wikipedia.org/wiki/Social_entrepreneurship “is the work of social entrepreneurs which recognize a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change (a social venture.) While a business entrepreneur typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. Social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors,^[1]but this need not preclude making a profit. Social entrepreneurship practices a world view or international context is called international social entrepreneurship.^[2]

Venture philanthropy “takes concepts and techniques from venture capital finance and technology, management and applies it to philanthropic endeavors.”http://en.wikipedia.org/wiki/Venture_philanthropy

Micro-financing http://www.philanthropist.org/microfinance.php “is a method of providing financial services to low-income entrepreneurs, often in the developing world. The provision of small loans to these individuals is called microcredit. Traditional banking services and loans are usually not a viable option for these potential borrowers because they often do not have assets that can be used as collateral and smaller loans are simply not profitable for the banks to maintain.”

Why the Entrepreneur Access to Capital Act is important
The failing economy is one of the driving forces behind the bi-partisan support. However, the Internet, social media and social networking sites are making it much easier for the average individual investor to invest capital in like-minded companies and social ventures without the red-tape, scrutiny or restrictions of the Federal Trade Commission.

Government and business leaders agree with a faltering economy, non-traditional methods of investment capital and job creation is necessary.  At the same time, social media’s reach and influence makes e-fundraising and e-venture philanthropy a logical next step.  The passage of the bill will open capital to businesses which are unable to secure  traditional bank loans. In many cases it will keep companies and missions viable and growing. However, concern exists over inexperienced investors losing money in high risk ventures and gambles.  Protective measures to guard the public from securities fraud must be part of the amended act.  For example will states have the authority and regulatory power over companies which participate in crowd-funding?  People who have been convicted of securities crimes, how will they be restricted from crowd-funding? A disclosure on company web sites and social networking channels is required stating the risk and speculative nature of investment start-ups. Is this enough?

Who benefits from the passing of the Entrepreneur Access to Capital Act?
Michael Barnard commented on a blog about what it means to one industry. “The independent film industry has been adversely affected by the economy and technology, more than many other industries. One symptom of this malaise is the rise of “crowd-funding,” the only way many filmmakers have been able to practice their art and craft. We connect with people via crowd-funding who are willing to donate money in order to see independent films continue. It is not a profitable venture for any involved and the amounts are small. Because of the hindrances of the broad securities regulations, crowd-funding has been only a vehicle for small donations, not large investment. This has kept the independent film industry expressive, but in turmoil and without any financial base for rebuilding its infrastructure. This is an exciting opportunity for filmmakers to offer real equity investment to those who are interested in independent films. These people want to participate in filmmaking and are knowledgeable about its risks and rewards.” http://www.washingtonwatch.com/bills/show/112_HR_2930.html#usercomments

www.kickstarter.com is an example of crowd-funding which allows actors, artists and entertainers to solicit fans to raise funds for their projects and entertainment tours and in return, participants receive CD’s T-shirts and signed posters.  Crowd-funding will also allow startups to offer and sell securities via crowd-funding sites and social networks. http://www.portfolio.com/business-news/2011/11/03/house-passes-two-bills-to-help-startups-raise-capital

www.philanthropist.org will benefit from the passing of the act. This social venture is an example of seven successful social and business entrepreneurs who have a business vision with a social mission. They have created a global network of like-minded people who are leveraging technical, financial and business principles to bring people of means with people in need. The ultimate goal is to eradicate poverty in the developing world. What makes it truly innovative is that “Philanthropist.org is a virtual community which allows exchanges that join charitable donors with volunteers. Donors use Philanthropist.org because they see value in the ability to easily sort, compare, and select from a wide range of transparent and charitable efforts and efficiently direct their contributions to those individuals deemed most worthy of their philanthropy.”

The passing of this bill allows www.philanthropist.org to further the mission by allowing individuals to become Internet philanthropists. They have a viable technology infrastructure driven by a business model which includes five guiding principles: transparency, inclusion, liberty, efficiency and social impact http://www.philanthropist.org/mission.php. This one organization has the potential to leverage crowd-funding and social entrepreneurship.

Time will tell if the passing of this bill creates better access to new capital, expands new businesses and creates new job opportunities.  The crowd-funding exemption is a big boom for a lot of American small business owners who are looking for new and innovative ways to establish business capital and spurn new ventures. Others are skeptical.  We will be watching. http://www.nhbr.com/businessnewsstatenews/939487-257/crowdfunding-gets-big-boost-in-congress.html