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Good subject but I'm surprised the question is still going around. I think that any NGO who has an online presence must keep a weblog, this has always been my advise.

First of all it's important to understand that non-profits are not selling a product, they campaign on different issues and in different ways. Their audience can change according to each campaign, so you can't restrict it in a box as you'd normally try to do in a .com. By using a weblog, and in particular the feedback features, you provide this kind of flexibility and, at the same time, you strengthen the relationship with your audience. In order to virally distribute the message you have to increase the channels of communication, people want to show they are on your side, don't want to be treated as milk cows for fundraising purposes.

The majority of non-profits have a website nowadays. Why focussing on a weblog? Beside the general info about their popularity that even Wikipedia can provide, a practical example can be done by searching for 'greenpeace' in Google. The Greenpeace weblog ranks above many of their "official" websites and it still is among their most visited pages/sites.

Sure, you need to update a weblog regularly and write interesting stories. But these can be very short and more accessible to the wide public which, in general, doesn't care much about a press-release style for news.
These efforts are the same, if not less, than working on a normal website with the bonus of a no-effort learning curve and the low costs to create them (always an issue for non-profits). In fact weblogs can give voice to different people in an organisation: staff, campaigners, activists, volunteers. Transparency, this is what people want from a non-profit.

Maybe, since the focus is on the dynamic content, one thing that can't be done easily on blogs is fundraising. But, still, if the author is a good one, her/his calls for donations will be listened.

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