Come on in. The water's fine.

At a gathering of foundation communicators last month in Chicago, researchers David Brotherton and Cynthia Scheiderer released the report “Come On In. The Water’s Fine. An Exploration of Web 2.0 Technology and Its Emerging Impact on Foundation Communications.” The report, commissioned by the Communications Network, surveyed a selection of foundation communicators to determine what the field is thinking, doing and learning about Web 2.0 tools.

The report found that nonprofits are making more use of Web 2.0 tools than are foundations – mainly to advance fundraising and volunteer recruitment, but also to connect with constituents in new and meaningful ways. One compelling example is Thank Your Donor launched by Blood Services of Canada. The campaign encourages those who have benefited from donated blood or plasma products to tell their stories via user generated media, with the result being an undeniably powerful presence that connects people through a shared experience.

Foundations may be skeptical to jump into the Web 2.0 pool, the report authors theorize, because of a historic proclivity to remain in the background while promoting the good works of its grantee partners. However, some foundations have begun to experiment: Rasmuson Foundation launched a Gallery of Alaska Artists in Second Life to test virtual worlds as a means to share information about its arts grantees; MacArthur Foundation is “mashing” its grant award data with Google Earth to better demonstrate its reach; and the W.K. Kellogg Foundation used an online forum to solicit ideas for their “What Helps Vulnerable Children Succeed” initiative.

One might argue that foundations, which often have the resources for experimentation, have a unique opportunity to test social media to build constituencies, advance ideas and establish best practices for grantee partners. As more and more Americans form opinions from information they find online, it is important that the sector engages this new media environment.

What Web 2.0 tools have you used? Do you know of great examples to recommend? How should foundations and the nonprofit sector harness the promise of social media? Please share your thoughts here.