Givebutter was founded in a George Washington University dorm room in 2016 with the mission of making nonprofit fundraising more transparent and enjoyable. Fast forward eight years, and the company is now profitable and has recently secured a $50 million investment to expand its operations in response to the growing momentum of nonprofit-focused startups.
The co-founder and CEO of Givebutter, Max Friedman, discovered the common pain point among various organizations he fundraised for during college – the use of disparate and inefficient tech solutions with hidden fees. This realization led to the creation of Givebutter, a comprehensive CRM platform for nonprofits that simplifies fundraising processes and offers transparent pricing.
Givebutter provides a range of features including marketing resources, donor tracking capabilities, fundraising tools for different strategies, and payment processing. Nonprofits can choose between using Givebutter for free with a donation option to Givebutter, or paying a platform fee of 1% to 5%.
The recent $50 million funding round from Bessemer’s BVP Forge Fund and Ardent Venture Partners will primarily be utilized for marketing efforts to support the company’s growth. Givebutter’s success without significant marketing spend thus far highlights the demand for effective fundraising tools in the nonprofit sector.
There is a noticeable increase in the emergence of nonprofit tech startups, as demonstrated by companies like Givefront and Aidy. The shift towards tech solutions for nonprofits indicates a changing landscape in the sector, with potential for further growth and innovation.
Despite the challenges posed by established players in the nonprofit software space, Givebutter remains optimistic about its market share and growth potential. With only 1% of the market captured so far, the company sees ample opportunity to expand and cater to a broader range of nonprofits.
As the nonprofit sector continues to evolve, Givebutter anticipates more competition but also recognizes the resilience and impact of nonprofits in tackling global issues. The company is committed to supporting the nonprofit community and is poised to capitalize on the growing awareness and investment in philanthropic initiatives.
