Friday, January 14, 2022
As best I can tell, GoFundMe allows both individuals and organizations to solicit money. While GoFundMe does allow charities to ask for money, my impression is that individuals looking for help with medical bills and other emergencies is a big part of what it does.
Classy, by contrast, appears to focus exclusively on putting donors together with nonprofits. I confess that I hadn't heard of them until this morning, but the acquisition announcement says that over its 10-year life, Classy has helped put $4 billion in the hands of nonprofits (including $1.1 billion last year).
I confess that I don't have any sense of who benefits from this kind of consolidation in the nonprofit fundraising sector. Is it good for charities? for donors? for shareholders of the two companies? (If you have thoughts, I'd love to hear them in the comments or in emails!)
It will, however, be interesting to watch what happens as GoFundMe starts to focus on nonprofit fundraising in a serious way.
Samuel D. Brunson