Numerous nonprofits are burdened by outdated, costly, and restrictive technology that obstructs their ability to support their mission effectively. Although many organisations view technology adoption as essential, they encounter several obstacles, including fragmented data and integration challenges.
Peter Byrnes, co-founder of Fundraise Up, a fundraising platform based in Brooklyn, points out that this often results in a negative experience for donors.
Byrnes highlighted that the messaging of nonprofits focuses on creating change, making a difference, and being heroes. However, he noted that when potential donors reach the donation form, the experience drastically contrasts, leaving them feeling frustrated rather than empowered.
In 2017, Byrnes, alongside Anton Isaykin and Yuriy Smirnov, established Fundraise Up. The three had previously co-founded Campus on Fire, a software development company dedicated to building peer-to-peer marketplace solutions.
Fundraise Up enables nonprofits to easily integrate a “Donate Now” button on their website or craft a dedicated campaign page. The platform comes equipped with features designed to facilitate fundraising efforts, monitor donation statistics, and accept various payment methods.
Several donation tools exist for nonprofits, including Give Lively, Zeffy, and Funraise. So, what makes Fundraise Up a desirable option for nonprofits?
Byrnes explains that Fundraise Up leverages advanced AI technology in its services, allowing it to offer capabilities that exceed typical tools. For instance, the platform can personalise donation suggestions for individual donors, intelligently propose upgrades to recurring donations, and present alternatives when a donor is contemplating cancellation.
Byrnes stated that the platform is designed to minimise donor friction and alleviate the pressures faced by nonprofits. He noted that while competitors are beginning to recognise the revolutionary potential of AI, Fundraise Up’s sophisticated models and robust dataset provide a significant advantage over those adopting AI later on.
Byrnes also asserts that Fundraise Up’s pricing structure is appealing and competitive. Unlike some platforms, Fundraise Up does not require upfront payments from customers. Nonprofits incur a 4% fee per transaction alongside standard payment processor fees and benefit from complimentary technical support.
The issue with long-term contracts, commonly offered by traditional providers, is that nonprofits pay in advance for services without guaranteed results. Byrnes explained that if a nonprofit faces a challenging year, they are still liable for the fees. In contrast, Fundraise Up does not receive any payment until it has delivered results.
Fundraise Up is evidently thriving, with over 3,000 nonprofits currently utilising its platform, including notable organisations such as the Canadian Red Cross, the American Heart Association, and The Salvation Army UK.
To support its growth plans, Fundraise Up secured $70 million in a minority growth investment this month, led by Summit Partners with contributions from existing investor Telescope Partners. This new funding raises the total amount raised by the startup to over $80 million, which will be directed towards product enhancements and expanding into new markets and sectors.
Byrnes mentioned that recent macro trends indicate the philanthropic landscape is evolving rapidly yet remains a resilient opportunity. With the latest funding, Fundraise Up aims to capitalise on this momentum and solidify its position as a market leader, dedicated to innovation and delivering a positive impact on nonprofit missions.