Many nonprofits are tied to outdated, expensive, and limited technology that hinders their mission and ability to fund their causes. Most companies consider technology adoption a priority, but face many obstacles, including siled data and integration issues.
Peter Burns, co-founder of Fundraise Up, a Brooklyn-based fundraising platform for nonprofits, says the result is often low donor satisfaction.
“The message of nonprofits is to influence change, to make a difference, to be a hero,” Burns said in an interview with TechCrunch. “But when potential donors arrive at the donation form, the experience takes a complete 180. They don't feel empowered and feel frustrated.”
Burns founded Fundraise Up in 2017 with Anton Isaikin and Yuri Smirnov. Previously, the three co-founded Campus on Fire, a software development company focused on building peer-to-peer marketplaces.
Fundraise Up allows nonprofits to add a “Donate Now” button to their website or create a dedicated campaign page. The platform offers features that help you manage your fundraising efforts, track your donation statistics, and accept a variety of payment formats.
Fundraise Up's platform can enhance donation flow on an organization's existing website. Image credit: Fundraiser
There are plenty of giving tools for nonprofits, including Give Lively, Zeffy, and Funraise. So why would nonprofits want to fundraise?
Burns said Fundraise Up has deeply embedded AI into its service, allowing it to do more than your average tool. For example, the platform can tailor gift suggestions to individual donors, “smartly” encourage donors to upgrade to recurring donations, and provide options when a donor is about to cancel. can.
“Our platform is designed to remove friction for donors and reduce the burden on nonprofits,” Burns said. “As our competitors are waking up to the transformative power of AI, our models and datasets give us a significant advantage over companies that incorporate AI at a later stage.”
Burns also claims that Fundraise Up's pricing model is attractive and highly competitive. Unlike some platforms, Fundraise Up does not charge customers upfront. Nonprofits pay a 4% fee (+ payment processing fee) on each transaction and receive free technical support.
“The problem with lock-in contracts, the go-to model for traditional providers, is that nonprofits pay upfront for services before they see results,” Burns says. “If they have a tough year, they still have to pay their bills. For us, it doesn't cost us a penny until we deliver.”
Fundraise Up's strategy certainly seems to be working. Burns said more than 3,000 nonprofit organizations currently use the platform, including the Canadian Red Cross, the American Heart Association and the British Salvation Army.
To fund its expansion, Fundraise Up this month raised $70 million in minority growth investment led by Summit Partners with participation from existing investor Telescope Partners. The startup has raised more than $80 million in total, with the new cash expected to be used for product development and funding for new markets and industries.
“Looking at recent macro trends, the endowment market continues to be a rapidly growing yet resilient opportunity,” Burns said. “With our funding, Fundraise Up will build on its momentum and solidify its position as a market leader and the funding platform that positively impacts innovation and nonprofit missions. We aim to do so.”
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