Many nonprofits are stuck with outdated, expensive, and limited tech that hinders their ability to fund their mission or cause. While most consider adopting tech to be a priority, they’re faced with a number of blockers, including siloed data and issues with integration.
Peter Byrnes, the co-founder of Fundraise Up, a Brooklyn-based fundraising platform for nonprofits, says that the result is often a poor donor experience.
“The nonprofit’s messaging is about affecting change, making a difference, and being a hero,” Byrnes told TechCrunch in an interview. “But when a would-be donor arrives to the donation form, the experience is a complete 180. They don’t feel empowered — they feel frustrated.”
Byrnes founded Fundraise Up in 2017 with Anton Isaykin and Yuriy Smirnov. Previously, the trio co-founded Campus on Fire, a software development firm focused on creating peer-to-peer marketplaces.
Using Fundraise Up, nonprofits can add a “Donate Now” button to their website, or create a dedicated campaign page. The platform offers features to help manage fundraising drives, keep track of donation stats, and accept different forms of payment.
There are plenty of donation tools for nonprofits out there, including Give Lively, Zeffy, and Funraise. So why would a nonprofit want Fundraise Up?
Well, according to Byrnes, Fundraise Up deeply incorporates AI into its offerings, enabling it to do more than the average tool. For example, the platform can tailor donation suggestions to individual donors, “intelligently” recommend that donors upgrade to recurring donations, and offer options when a donor is about to cancel.
“Our platform is designed to remove donor friction and alleviate the burden shouldered by nonprofits,” Byrnes said. “While competitors are now waking up to the transformational power of AI, our models and dataset give us a great advantage over those who incorporate AI at a later stage.”
Byrnes also claims that Fundraise Up’s pricing model is attractive — and highly competitive. Unlike some platforms, Fundraise Up doesn’t charge customers upfront. Nonprofits pay a 4% fee per transaction (plus payment processor fees), and receive technical support for free.
“The problem with lock-in contracts — the go-to model for legacy providers — is that nonprofits are paying upfront for a service before seeing any result,” Byrnes said. “If they have a challenging year, they still have to pay the fees. For us, we don’t see a penny until we deliver.”
Fundraise Up’s strategy certainly seems to be working well for it. Over 3,000 nonprofit organizations are using the platform today, according to Byrnes, including the Canadian Red Cross, the American Heart Association, and The Salvation Army UK.
To fund its expansion, Fundraise Up raised $70 million this month in a minority growth investment led by Summit Partners with participation from existing investor Telescope Partners. Bringing the startup’s total raised to over $80 million, the new cash will be put toward product development and bringing Fundraise Up to new markets and verticals.
“As of recent macro trends, the giving market continues to be a rapidly growing, yet resilient, opportunity,” Byrnes said. “With our raise, Fundraise Up aims to amplify that momentum, and solidify its position as a market leader — and as a fundraising platform that delivers on innovation and positive impact to nonprofit missions.”
