AI Fundraising: Fundraise Up Claims Donation Boosts
Nonprofits Face Tech Challenges Hindering Fundraising Efforts
A significant number of nonprofit organizations are currently utilizing outdated and costly technology solutions. These systems often restrict their capacity to effectively fund their core missions and objectives. Despite recognizing the importance of technological adoption, many are encountering obstacles such as data silos and integration difficulties.
Donor Experience is Key
Peter Byrnes, co-founder of Fundraise Up, a fundraising platform based in Brooklyn, emphasizes that these issues frequently lead to a suboptimal experience for potential donors.
“Nonprofit communications typically center around enacting positive change, making a difference, and empowering individuals,” Byrnes explained to TechCrunch. “However, when a prospective donor reaches the donation page, the experience can be drastically different. Instead of feeling empowered, they often encounter frustration.”
Fundraise Up's Origins
Fundraise Up was established in 2017 by Byrnes, alongside Anton Isaykin and Yuriy Smirnov. Prior to this venture, the team collaborated on Campus on Fire, a software development company specializing in peer-to-peer marketplaces.
The platform allows nonprofits to easily integrate a “Donate Now” button onto their existing websites. Alternatively, they can create dedicated campaign pages. Fundraise Up provides tools for managing fundraising campaigns, tracking donation statistics, and processing various payment methods.
Standing Out in a Competitive Market
Numerous donation platforms are available to nonprofits, including Give Lively, Zeffy, and Funraise. The question arises: what distinguishes Fundraise Up from these alternatives?
According to Byrnes, Fundraise Up’s strength lies in its comprehensive integration of artificial intelligence (AI). This allows the platform to offer functionalities beyond those of typical donation tools. For instance, it can personalize donation suggestions for individual donors, proactively suggest recurring donations, and present alternatives to donors considering cancellation.
“Our platform is engineered to minimize donor friction and reduce the administrative burden on nonprofit organizations,” Byrnes stated. “While competitors are beginning to recognize the transformative potential of AI, our established models and extensive dataset provide a significant competitive advantage.”
Pricing and Support
Fundraise Up’s pricing structure is also designed to be appealing. Unlike some providers, it does not require upfront fees. Nonprofits pay a transaction fee of 4% (in addition to standard payment processing fees) and receive complimentary technical support.
“Traditional lock-in contracts, common among established providers, require nonprofits to pay for services before realizing any benefits,” Byrnes explained. “Even during financially challenging periods, these fees remain due. We only receive payment upon successful delivery of results.”
Growth and Adoption
Fundraise Up’s approach appears to be yielding positive results. The platform is currently utilized by over 3,000 nonprofit organizations, including prominent entities such as the Canadian Red Cross, the American Heart Association, and The Salvation Army UK.
Recent Funding and Future Plans
To support its continued expansion, Fundraise Up recently secured $70 million in minority growth investment. This round was led by Summit Partners, with participation from existing investor Telescope Partners. This brings the startup’s total funding to over $80 million. The new capital will be allocated to product development and expansion into new markets and sectors.
“Recent market trends indicate a consistently growing and resilient giving landscape,” Byrnes noted. “With this new funding, Fundraise Up intends to capitalize on this momentum and solidify its position as a market leader – a fundraising platform that consistently delivers innovation and positive impact for nonprofit missions.”
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