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-----Original Message-----
From: Mark Frazier [mailto:[EMAIL PROTECTED] 
Sent: Wednesday, October 12, 2005 9:48 PM
To: 'The Digital Divide Network discussion group'
Subject: [DDN] Whitepaper explores a new form of challenge grants to
promotenonprofit sustainability

All,

A report on new opportunities for nonprofit sustainability is coming out
this weekend.  I hope DDN participants will find the strategies of benefit
in securing new assets and funds.

The 80-page Sabre Foundation/Whitehead Foundation-sponsored study --
entitled "New Catalysts for Sustainability: A Global Opportunity for Digital
Philanthropy" -- follows almost a year of research into ways that digital
donations can catalyze local assets for self-help initiatives, including
those that work in unsettled regions of the world. 

A copy of the full pre-release version report is on the web at
http://tinyurl.com/dovec for advance review by nonprofit organizations that
may be interested in applying the strategies, as well as by bloggers and
journalists. (The report is officially set for release on October 15, so we
ask journalists to hold off on articles until then.)

Projects based on strategies set out in the white paper are now under way in
Sri Lanka and Kyrygyzstan, where Openworld has been helping to launch land
grant and microvoucher initiatives. Background and links about these are at
the recently-updated www.openworld.com web site.

I will welcome comments and ideas on how the Digital Donation approaches can
bring new assets to grassroots self help initiatives.

Best,

Mark Frazier
Openworld, Inc.
www.openworld.com
[EMAIL PROTECTED]


===========================


FOR RELEASE: 
SATURDAY, OCTOBER 15, 2005
Press Contact:  Mark Frazier  - 202.257.2574


SABRE FOUNDATION WHITE PAPER EXPLORES CHALLENGE GRANT OPPORTUNITY TO
LEVERAGE LOCAL ASSETS FOR NONPROFIT INITIATIVES


Donors can offer digital donations -- gifts in electronic form -- for
leveraging policy reforms and "land grant" endowments that benefit
grassroots groups in troubled areas, according to a white paper that
distills findings from an 11-month research project on global trends in
digital philanthropy. 

Entitled "New Catalysts for Sustainability:  A Global Opportunity for
Digital Philanthropy," the white paper describes a new challenge grant
approach for philanthropies to encourage communities around the world to
launch self-funding systems that expand grassroots access to learning,
health care, and job opportunities.

The research effort, conducted by Mark Frazier under the sponsorships of the
Massachusetts-based Sabre Foundation and Brussels-based Sabre Europe with
funding from the Whitehead Foundation and private donors, proposes that
current forms of digital donations such as free software and online
reference materials be extended to include microscholarships for eLearning
and microvouchers for health care resources.  

"These new forms of giving can spread grassroots access to valued education
and health information resources around the world, much as microfinance
innovations have brought private capital within reach of tens of millions of
small and new entrepreneurs," said white paper author Mark Frazier,
President of Openworld Inc., a nonprofit Washington-based group that
specializes in design of self-funding information technology ventures in
emerging markets.

Given the rapid plunge in telecommunications costs and the rise of new
online payment systems, the white paper notes that it is now possible for
philanthropies to extend their reach by offering digital donations on a
basis that can catalyze self-funding nonprofit initiatives even in remote
areas of the world. 

The white paper notes that expanding bandwidth enables philanthropies to
bypass cumbersome and corrupt bureaucracies, and to target resources in ways
that reach local nonprofits directly. By combining digital technologies with
such traditional devices as scholarships, land grants, and challenge grants,
local nonprofits can seize opportunities to break out of dependency upon
current external subsidies and charitable giving.

The report charts detailed practical steps that can be taken by
philanthropies and their non-profit clients.  It notes that philanthropists
can offer bundled digital donations to reward communities that agree to make
local nonprofit groups beneficiaries of land grants, and that commit to new
liberalizing policies raising the value of these stakeholdings.  The land
grant strategy builds upon the successful examples of U.S. government land
transfers to universities following passage of the Morrill Act of 1862, and
of land grant endowments now benefiting universities in Thailand and the
Philippines.

Key factors in choosing areas to receive digital donations can include local
agreements to: 

-       remove outmoded telecommunications regulatory constraints;

-       introduce transparent eGovernment systems that simplify startup and
operating procedures for business and social entrepreneurs; and

-       adopt land registry reforms that can substantially raise property
values and attract inflows of diaspora and other private sector investment.

"Normally, advocates of these changes have had limited leverage, because
tangible gains from adopting reforms often take time to reach the public,"
said Frazier.  Digital donations offer a means for community residents to
experience a wide range of benefits with little or no delay.

Moreover, the white paper notes that vesting highly-regarded nonprofit
groups with ownership interests in "greenfield" land grants can establish a
growing asset base for local self-help initiatives, expanding the services
they provide to communities as liberalizing reforms take hold. 

"Large rises in land values can be generated by introducing titling reforms
and other needed economic policy innovations on properties held by nonprofit
groups," said Frazier. "Planting seeds for 'open world zones' modeled after
the freeport policies of Singapore and Dubai can result in enormous asset
creation for microvoucher funds and for active local self-help groups."

In addition to laying out the framework for catalytic digital donation
strategies, the white paper provides "toolkit" resources in its appendices
that can be put to immediate use by philanthropies and local nonprofit
groups interested in launching replicable and scalable sustainability
initiatives.

Frazier noted that moves to offer digital donations on a challenge grant
basis may help to open a new era in philanthropy, in which donors promote
the long-term sustainability of recipient organizations around the world
rather than continuing dependence upon external subsidy.

An advance review copy of the final Sabre Foundation-sponsored white paper
is available for downloading at http://tinyurl.com/dovec (an 80-page report
in Adobe Acrobat format).

The following web pages provide background on Openworld (www.openworld.com)
initiatives implementing the white paper strategies, including
microscholarship and land grant projects in Sri Lanka and Kyrgystan:

-       Horizon Lanka Microscholarships  (www.microscholarships.org)
-       Kyrgyz eCenter Initiative:  Academy for Educational Development and
Openworld with USAID support    (http://tinyurl.com/88hfe)



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