Sunday, December 20, 2015

What is it about the nonprofit structure?

You’ve probably heard about OpenAI — a new, billion dollar nonprofit to focus on artificial intelligence research that is good for humanity. In their own words:
“OpenAI is a non-profit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.
Since our research is free from financial obligations, we can better focus on a positive human impact. We believe AI should be an extension of individual human wills and, in the spirit of liberty, as broadly and evenly distributed as possible.
The outcome of this venture is uncertain and the work is difficult, but we believe the goal and the structure are right. We hope this is what matters most to the best in the field.”
In an interview posted on the Singularity University newsletter, one of the founding researchers, Andrej Karpathy, a Stanford doctoral candidate who interned at Google and DeepMind, says:
“A lot of it comes from OpenAI as a non-profit. … It’s not clear that you would want a big for-profit company to have a huge lead, or even a monopoly over the research. It is primarily an issue of incentives, and the fact that they are not necessarily aligned with what is good for humanity. We are baking that into our DNA from the start.
Also, there are some benefits of being a non-profit that I didn’t really appreciate until now. People are actually reaching out and saying “we want to help”; …
OpenAI… encourages us to publish, to engage the public and academia, to Tweet, to blog. …. If something like [CRISPR which has great potential for benefiting — and hurting — humankind. Because of these ethical issues there was a recent conference on it in DC to discuss how we should go forward with it as a society] happens in AI during the course of OpenAI’s research — well, we’d have to talk about it. We are not obligated to share everything — in that sense the name of the company is a misnomer — but the spirit of the company is that we do by default.
In the end, if there is a small chance of something crazy happening in AI research, everything else being equal, do you want these advances to be made inside a commercial company, especially one that has monopoly on the research, or do you want this to happen within a non-profit?
We have this philosophy embedded in our DNA from the start that we are mindful of how AI develops, rather than just [a focus on] maximizing profit.
It’s a lot of responsibility. It’s a “lesser evil” argument; I think it’s still bad. But we’re not the only ones “controlling” the field — because of our open nature we welcome and encourage others to join in on the discussion. Also, what’s the alternative? In a way a non-profit, with sharing and safety in its DNA, is the best option for the field and the utility of the field.”
So here we have a case of knowledgeable people recognizing a threat and deciding that the way forward is to create a nonprofit organization. This moment has some historical precedent. In 1955, Albert Einstein, Bertrand Russell and several other scientists got together and issued a manifesto about the dangers of nuclear technologies. It would launch decades of Pugwash conferences and the anti-nuclear movement.

The founders of OpenAI also issued a manifesto. Back in January 2015, Stephen Hawking and Elon Musk, one of OpenAI’s key funders, signed an “Open Letter on Research Priorities for Robust and Beneficial Artificial Intelligence.” We’ve spent decades monitoring, signing treaties about, building and dismantling nuclear weapons. The Einstein-Russell Manifesto and Pugwash happened after the U.S. had detonated two atomic bombs and the world could agree on the horror they created. Nuclear capacity still plays a major role in global politics but efforts to prevent their use and spread have mostly succeeded. My questions are not about nuclear power or AI per se, they are about the viability of the nonprofit organization in today’s world of shifting public, private, and corporate roles.
  • Will a set of voluntary manifestos and a few nonprofits work to keep AI from harming people? Unlike the nuclear weapons case, the likely builders of dangerous applications are not nation states, they are corporations. Unlike nuclear weapons (or energy) the component costs are dropping, not rising, and there is no singular component that can be tightly controlled (as in the case of enriched uranium).
  • Is the strategy of “out R+D’ing” the commercial competitors via a nonprofit that will share some (most) of what it learns realistic? In most cases where there is competition between for-profits and nonprofits the capital scheme favors the commercial players (see, for example, car sharing. medical devices, pharmaceuticals)
  • Is the governance model of nonprofits — no shareholders, public purpose mission, excess holdings limitations, nondistribution clauses — enough to direct research with potentially harmful applications away from those harms?
There will need to be other strategies to “control” dangerous AI. But the application of the U.S. nonprofit corporate model to a global challenge such as this provides a great moment to ask ourselves”.
  • What can the nonprofit enterprise form do and what cannot it not accomplish?
  • What kind of structure can best manage intellectual, digital, and algorithmic resources for long-term public benefit?
  • How might open source governance models augment the nonprofit enterprise form and where, if anywhere, do they conflict?
Unlike the machine learning experts who are joining OpenAI, I see no reason to assume that the nonprofit structure is sufficient to accomplish their goals. If the challenges of AI are as great as these minds seem to suggest, is the “lesser evil” OK? 

I commend them for directing their expertise toward beneficial uses of the technology. I also think it’s time to reconsider the institutional technology of the nonprofit corporation. We need institutions that can generate, direct and hold digital resources for long-term public benefit; I’m not sure the current nonprofit firm is the answer.









Wednesday, December 09, 2015

Philanthropy Buzzwords 2016 (and back to 2007)

Blueprint 2016: Philanthropy and the Social Economy is now available. You can get your FREE copy via Grantcraft here.

This year's Blueprint has a worksheet focused on some of the big themes designed for nonprofits and foundations to use as part of organizational development or strategic planning processes - you can access that here

The Chronicle of Philanthropy is running an edited version - you can see that list here. The Blueprint has an more expanded and revamped version.

And here, where it all began, is a a complete list of top ten buzzwords, by year, going back to 2007.


2016
1.     “…for Good.”.
2.     Overhead Myth.
3.     Effective Altruism.
4.     X-Risks
5.     Platform Cooperativism
6.     Worm War
7.     Algorithm.
8.     Augmented Reality.
9.     Biononymity.
10.  CRISPR.

Bonus, late in year addition - the $45 billion buzzword - LLC. 


2015

1. Internet of Things
2. Citizen Science
3. Giving Days                                              
4. A/B Testing
5. Data Gender Gap
6. Encryption                                     
7. Artivists
8. Wearables
9. Smart Cities
10. Iterate

2014 
1. Privacy
2. Performance Management
3. Peer-to-peer services
4. Constituent Feedback
5. Makers
6. Bitcoin
7. Commons
8. Metadata
9. Randomista
10. Solutionism
Bonus – Hackers

2013
1) X
2) MOOCs
3) Hackathon
4) Fiscal Cliff
5) Resilience
6) Social Welfare Organization
7) Sensemaking
8) Data Scientist
9) Flash Mob Philanthropy
10) Data

2012
1 Social Impact Bond
.2 Collective Impact
.3 Storytelling
.4 Charitable Tax Reform
.5 Infographics
.6 Evidence-based
.7 Shapeshifting
.8 Disruption
.9 Amplify
.10 # 

2010 and 2011
10 - Giving Pledge
9 - Markets for Good.
8 Crowdfunding
7. Chugger
.6 - Co
5 - Charity washing
4 - Curator.3 - Networked2 - Sector Agnostic
1 - Scale

2009
Impact Investing
B Corporations
Mergers

2008
10) Philanthrocapitalism
9) Social Capital
8) NextGen
7)
Charitable Gift Cards
6)
Good gifting
5)
Micro - (endowment, philanthropy, finance, franchise, consignment)
4)
Design,
3)
Outsourced Program Advising,
2)
Labs,
1)
Mobile Giving,

2007

Wednesday, December 02, 2015

$45 billion ought to get your attention

That's the current value of the funds Mr. Zuckerberg and Dr. Chan have announced they will dedicate to social purposes. In doing so they are sending a clear signal that they recognize the choices available to them (and, indeed, all of us) and have chosen to use them to pursue their interests. The Chan Zuckerberg Initiative, a Limited Liability Corporation, puts all of these choices in one vehicle.*

(photo credit: Lucy Bernholz, Blueprint 2011) 

Despite the timing (GivingTuesday) and the headlines, what the couple announced does not constitute a gift or a charitable donation. It's inspiring, may produce positive social good, may usher in a new era or serve as a watershed moment for the new social economy, and is certainly an important and impressive act. But what they did was set up an LLC. They didn't transfer the possession of any assets, nor when they do shift assets to the LLC will they have relinquished possession or control.


*Possibly not crowdfunding, but who knows.

Monday, November 23, 2015

Democracy in digital times

I'm honored to have had my first ever newspaper article published in Portuguese in the Brazilian paper Gazeta do Povo. It was published as part of the first ever Semana da Democracia - Democracy Week.

The link above will take you to the article, there's a photo below, and if your Portuguese is as bad as mine, the English original is below.


The Demands of Digital Democracy
Lucy Bernholz


            Digital data and infrastructure are changing business, government, and the ways that people help each other out. We now shop, vote, and donate money and time using networked digital connections. In twenty years mobile phone access has risen from 1% of the world’s population to more than 70%. This is the year that analysts predict there will be more mobile phone accounts than people on the planet. 

            In the United States most of the discussion these digital tools are often described as democratizing. As more people gain network access, more voices can be heard, more engagement can be created, and more participation is possible. The democratizing potential of digital tools is one of their greatest selling points.
           
            Since we’ve now been using these digital tools for almost two decades, we should be able to answer the question of when and how they are democracy enhancing. There is a great deal of data – from political protests to community organizing based on mobile phones to civic technology efforts focused on helping governments be more responsive and engaged with their electorates.

            But all the data do not point in one direction. Despite promises of digital democracy, voting rates are still low and protestors are easily tracked. And with every step forward, to bring more people into the digital conversation, the digital divide moves as well – it doesn’t close, it simply shifts from being about access, to being about skills, to be about voice, to being about power and influence. As people better understand the surveilled nature of digital spaces that knowledge has tempered the enthusiasm of community associations to rely on these low cost tools. Two decades into the digital revolution we are excited and cautious, dependent upon and tired of being always connected, always available.

            How to use digital tools to engage citizens safely, to encourage participation, and to involve and listen to the many new voices now ready to be heard remains a challenge. It is not as simple as just making the technology available. Left to their own devices, people with digital access do not automatically seek greater learning opportunities, take more active roles in their communities, or take part in the public life of their nations. But we know they can’t and won’t take these steps without the tools to do so.

             Digital tools and infrastructure are not innately democratizing. As they’ve become common, the thing they’ve created is a need for more equitable access to them. They will not counteract apathy or powerlessness or structural exclusion. The lesson of the last twenty years is that the tools and the skills to use digital tools well have become a necessity, but access is not sufficient. Greater democratic participation in the digital age depends on a commitment not to digital tools, but to the values of democracy itself.