Percent Raises $5M to Simplify Charitable Donations

The Growing Demand for Corporate Social Responsibility and a Potential Solution

Given the pressing global challenges and concerns regarding democratic principles, an increasing number of individuals are questioning whether the private sector should assume a more proactive role. This consideration extends beyond ventures like space tourism for the wealthy. Fortunately, many companies express a desire to contribute positively.

Challenges in Integrating Purpose into Digital Platforms

However, incorporating a sense of “purpose” into digital offerings – for example, facilitating donations to charities after a compelling documentary – presents significant obstacles. Businesses often lack the resources to develop and maintain donation software, consistently verify the legitimacy of charitable organizations, and navigate the complex legal and regulatory landscape surrounding charitable giving.

Introducing Percent: An API-Driven Solution

Pennies, an organization aiming to replicate the function of traditional charity collection boxes in the digital realm, offers one approach. Yet, a more comprehensive solution may lie in the development of an Application Programming Interface (API).

Percent's Core Functionality

Founded in 2017, Percent offers an API that enables businesses to seamlessly integrate charitable donations into their customer experiences. This can include matching donations with purchases, or allowing customers to round up transactions to contribute to worthy causes.

Recent Funding and Expansion Plans

The company has recently secured $5 million in venture funding, led by Morpheus Ventures. This investment will facilitate expansion throughout the United States, complementing its existing operations in the United Kingdom and Australia. Nationwide Building Society, a U.K.-based financial institution and early investor, also participated in this funding round.

Ensuring Transparency and Compliance

Percent’s platform prioritizes security and accountability. It automates auditing and compliance procedures to mitigate fraud and money laundering risks. Furthermore, it efficiently manages the distribution of funds to over 200 countries, ensuring tax-efficient disbursements. Currently, the platform lists and has vetted 7 million nonprofit organizations.

Insights from Percent's Leadership

Henry Ludlam, CEO and founder of Percent, stated: “Our vision is to establish Percent as the foundational API-first infrastructure for all charitable giving. This will pave the way for a more equitable and responsible form of capitalism, where social and environmental benefits are integrated into every financial transaction.”

The Impact of the Pandemic

In a recent discussion, Ludlam highlighted the accelerating impact of the COVID-19 pandemic. “The pandemic has created a surge in demand from brands seeking to integrate purpose into their operations, a shift that was less pronounced just 18 months ago. Consumer expectations have evolved, with individuals now expecting businesses to demonstrate a commitment to social responsibility.”

Future Applications and Integrations

Ludlam envisions the technology being integrated into various platforms, including streaming services. “Imagine watching a documentary and, feeling inspired, being able to instantly donate to a relevant charity. Our API would present a curated list of nonprofits, allowing viewers to contribute directly. We are also collaborating with a cryptocurrency platform to enable users to round down transactions and donate to their chosen causes. Numerous exciting developments are on the horizon.”

Investor Perspective

Kristian Blaszczynski, managing partner at Morpheus Ventures, commented: “Recent events have underscored the importance of aligning brands with purpose in driving consumer behavior. However, the current donation process is often cumbersome, manual, and inefficient. Percent’s API-first platform streamlines these processes, enabling businesses to better connect with stakeholders and concentrate on their core competencies.”

A Disconnect Between Perception and Reality

Percent’s solution addresses a significant gap in the market. Kantar Research indicates that only 22% of consumers can identify brands they believe are effectively addressing critical issues like climate change and pollution. Conversely, a remarkable 95% of businesses believe that “purpose” is central to their operations. This discrepancy highlights a clear need for demonstrable action.

The Potential for Widespread Adoption

Could Percent become the leading API for charitable donations? The coming months will reveal whether this innovative platform can bridge the gap between corporate intention and impactful social contribution.