Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Many nonprofits are stuck with outdated, expensive, and limited technology that hinders their ability to fund their mission or cause. While most prioritize technology adoption, they face a number of blockers, including hidden data and integration challenges.
Peter Byrnes, co-founder Fundraisinga Brooklyn-based fundraising platform for nonprofits says the result is often a poor donor experience.
“The messaging of a nonprofit is about effecting change, making a difference and being a hero,” Byrnes said in an interview with TechCrunch. “But when the would-be donor comes to the donation form, the experience is a complete 180. They don’t feel empowered — they feel frustrated.”
Byrnes co-founded Fundraise Up with Anton Isaykin and Yuri Smirnov in 2017. Previously, the trio co-founded Campus on Fire, a software development firm focused on creating peer-to-peer marketplaces.
Using Fundraise Up, nonprofits can add a Donate Now button to their website or create a dedicated campaign page. The platform offers features that help you manage fundraising drives, track donation statistics, and accept various forms of payment.
There are many donation tools for nonprofits, including Give Lively, Zeffy, and Funraise. So why would a nonprofit want to Fundraise Up?
Well, according to Byrnes, Fundraise Up embeds AI deep into its offerings, allowing it to do more than the average tool. For example, the platform can tailor donation offers to individual donors, “intelligently” recommend donors to upgrade to recurring donations, and offer options when a donor is about to cancel.
“Our platform is designed to eliminate donor friction and ease the burden on nonprofits,” Byrnes said. “While competitors are now waking up to the transformative power of AI, our models and datasets give us a huge advantage over later-stage AI adopters.”
Byrnes 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 per transaction (plus payment processor fees) and receive free technical support.
“The problem with contracting — the primary model for legacy providers — is that nonprofits pay up front for a service before they see any results,” Byrnes said. “If they have a tough year, they still have to pay the bills. According to us, we don’t see a penny until we deliver.”
The Fundraise Up strategy certainly works well for this. More than 3,000 nonprofits use the platform today, according to Byrnes, including the Canadian Red Cross, the American Heart Association and the UK Salvation Army.
To finance its expansion, Fundraise Up raised $70 million this month in a minority growth investment led by Summit Partners, with participation from existing investor Telescope Partners. Bringing the startup’s total funding to $80 million, the new money will go toward product development and expand Fundraise Up into new markets and verticals.
“Based on recent macro trends, the gift market continues to be a fast-growing but sustainable opportunity,” Byrnes said. “With the funds we’ve raised, Fundraise Up aims to build on that momentum and solidify its position as a market leader and fundraising platform that brings innovation and positive impact to nonprofit missions.”