Challenge
When Points of Light Institute (POL) merged with Hands On Network (HON) there was an online store operated on eBay that generated money for Points of Light. However, this “side business” was missed during the due diligence phase prior to the merger. The initiative was called the Points of Light eStore on eBay and was operated by an independent contractor for five years.
The eStore secured and sold donated goods online as well as travel packages on a consignment basis to individual and group travelers who would purchase trips at deeply discounted prices. Unfortunately, when the contractor left town for a trip of her own, it was quickly revealed that she had been running a Ponzi scheme. Hundreds of travelers who had been scammed took to eBay’s message board and other travel-related message boards denouncing Points of Light, implying the organization was not legitimate and threatening a Class Action lawsuit.
Solution
As the agency for Hands On Network at the time, c21 ran point on crisis communications, immediately developing a Communications Action Plan, which included a Situation Overview, Communications Goals, Proactive Communication Priorities, Reactive Communications and Key Messages. We worked with the lawyers, forensic accountants and the board of Hands On Network to understand the full scope of the issue, managed communications development for the website, emails, social media and the message boards where affected travelers were posting during the crisis, which happened over the July 4 holiday weekend. We listened online and posted as the organization’s official spokesperson. c21 media trained Michelle Nunn, executive director of Hands On Network, and managed local and national media relations with publications including the Atlanta Journal-Constitution, The Atlanta Business Chronicle, The New York Times and Nonprofit Times.
c21 managed direct messaging development and distribution to affected travelers and provided a daily recap of sentiment and specific posts from the message boards to key leadership and Hands On Network. We direct messaged some of the posters and found what we called “angels” who seemed sympathetic to the issue and often acted as a voice of reason on the message boards. POL and HON refunded hundreds of affected travelers to the best of their ability. We continuously developed and issued media statements and updates to affected travelers through posts on social media, both entities’ websites and through direct emails to affected customers.
Results
The crisis began on July 3 and lasted approximately six weeks. Over that time, we believe we were able to help change affected customers’ sentiment from complete anger and frustration to sympathy and forgiveness.
The story that ran in The New York Times compared two nonprofit scandals and Points of Light/HON was lauded for its transparency and hard work in transparent communications and quick response to refund affected travelers.