Tech organizations decline NIA invitation.

As the discussion regarding the pros and cons of business method patents heats up for nonprofits, two high profile organizations have decided not to join the Nonprofit Innovation Alliance (NIA), a group dedicated to removing the perceived threat of patent abuse within the sector.

Software and service provider Blackbaud and education organization ePhilanthropy Foundation have both been approached by the NIA and have decided not to join at the present time. Current NIA members have agreed to cross-license current and future business method patents to businesses, nonprofits and each other on a royalty-free basis.

Business method patents are designed to defend processes, which are often accomplished electronically. These patented methods are involved in operating a business or can define a product or service provided by that business.

The ePhilanthropy Foundation, a consortium of the sector's leading technology providers, has decided that it would prefer to focus its attention on providing information on the topic rather than "jump ahead of the issue," according to Ted Hart, founder and president of the Washington, D.C.-based nonprofit.

"What needs to happen is to lower the volume on this issue," Hart said. "People should certainly become more aware and knowledgeable about the issue. We feel a bit pulled by both sides, as both sides are exerting some pressure. But our position is that it's time to learn and not take an adversarial position on either side of the issue ."The organization has board members and financial supporters on both sides of the issue.

Blackbaud was approached shortly before the NIA was officially announced, according to Charlie Cumbaa, vice president of products and services at Blackbaud.

"(Blackbaud) did not have time to adequately review the prospect of our involvement before the group went forward, Cumbaa said. As an organization, we encourage innovation that benefits the nonprofit community. We will continue to evaluate the Alliance in that context."

Shabbir Safdar, chief technology officer at Mindshare Interactive Campaigns, LLC, a member of the NIA, confirmed that Blackbaud and the ePhilanthropy Foundation passed on membership but added, "We hope that they understand that the health of the sector is at stake."

The NIA previously approached Kintera, which has 16 patents pending with the U.S. Patent and Trademark Office, but the nonprofit software and service provider juggernaut passed on becoming a member.

"Kintera is the innovative leader in this new phase of philanthropy called online philanthropy and we've created a lot of innovative, creative technology and obviously filed patents on much of it," said Harry Gruber, president and chief executive officer of the San Diego-based company. "The whole patent system is about protecting what you do and encouraging other people to create. We feel that we've added much value to the industry by spurring all of this creative work [and] look forward to lots of other companies doing new and innovative things and creating technology."

NIA member organizations provide technology products, services and consulting to nonprofits in addition to creating a patent pool, which is designed to enhance access to new technologies and strengthen nonprofits. The NIA does not currently hold any business method patents.

The NIA was formed in January 2005 with the goal of fostering access to innovative technology for nonprofits in order that they may utilize the Internet for fundraising advocacy, event management and other mission-related activities. The NIA's initiative has been supported by the United Way of America and includes such members as Beaconfire Consulting, CharityWeb, Convio and GetActive.