The crowdfunding giant GoFundMe will acquire fundraising-software provider Classy, the companies announced Thursday.
In the near term, little will change for nonprofits that use the companies’ products. But the leaders of the two firms hope the move will help charities reach new supporters and help donors find new causes to support, Classy CEO Christopher Himes said.
Eventually, donors who give to an individual crowdfunding campaign may be connected with organizations that address underlying social problems. For example, donors who give to a campaign to help pay someone’s medical bills for leukemia could be presented with a suggestion to support the Leukemia & Lymphoma Society. Someone who donates to an individual whose home was destroyed in a wildfire could then be connected to a nonprofit that works on the underlying causes of climate change.
“We want to leverage GoFundMe as a channel for donor acquisition,” Himes said.
Donors have given more than $20 billion to individuals and organizations through the two platforms, the companies said in a joint press release.
In 2021 alone, nonprofits raised $1.1 billion on Classy’s platform.
GoFundMe, which made its name helping people give to other people, has provided tools for nonprofits to raise money on its platform for several years. In 2017, GoFundMe acquired CrowdRise, another nonprofit-fundraising-software company. Two years later, it launched GoFundMe Charity, further expanding its fundraising tools for nonprofits.
Classy will now be a subsidiary of GoFundMe. The two companies will operate as separate entities under the overall leadership of GoFundMe CEO Tim Cadogan. Himes will remain CEO of Classy.
The news comes amid consolidation in the nonprofit software world. Earlier this month, a new corporate umbrella organization made up of three nonprofit software platforms — EveryAction, Social Solutions, and CyberGrants — announced an agreement to acquire fundraising platform Network for Good.
