GoFundMe gets Classy (literally) with acquisition of nonprofit giving platform

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gofundme announced Today that it will acquire Classy, ​​a non-profit fundraising software company. It is a purely equity deal, though the company did not disclose financial details.

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Anyone from a local food pantry to a community member in need can create a GoFundMe. But Classy is more specialized, working directly with nonprofits. Since its 2010 seed round, Classy has picked up $183.5 million in venture capital, which has recently included a $118 million Series D In April 2021, led by Norwest Venture Partners. Public Benefit Corporation employs a team of 200 and will become a subsidiary of GoFundMe, operating as a separate entity under the leadership of GoFundMe CEO Tim Cadogan.

“While we are proud of the combined $20 billion raised by GoFundMe and Classy Communities for people and organizations, we recognize the unique opportunity we have to make an even bigger impact – both in the US and around the world – if we do this. Let’s do it together,” wrote Cadogan a blog post,

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Cadogan hopes the acquisition will help connect individual donors with nonprofit opportunities.

“This could mean that someone who donates to a natural disaster relief individual could be linked to a nonprofit that focuses on addressing the underlying causes of climate change,” he wrote. .

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The company said that $5 billion was raised in 2021 by GoFundMe and Classy combined. GoFundMe does not charge any fees. platform fee Fundraising (in addition to the standard transaction fee), but when people donate to a campaign, they can add an optional device that helps keep GoFundMe running. By default, the tip is set at 15% of the donation amount.

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