Givebutter is now profitable by creating technology for nonprofits

Givebutter, a startup that began in a George Washington University dorm room in 2016, has recently secured $50 million in funding to expand its platform for nonprofit fundraising. The company was founded by Max Friedman, who noticed a common problem among the organizations he fundraised for in college – they all used a mix of disjointed tech solutions that were inefficient and costly.

Friedman and his team set out to create a comprehensive CRM platform for nonprofits, which would streamline the fundraising process and provide transparency for donors. Givebutter offers a range of tools for marketing, donor tracking, fundraising strategies, and payment processing. Nonprofits can use the platform for free if they allow users to donate to Givebutter, or they can pay a platform fee ranging from 1% to 5%.

The recent $50 million funding round, led by Bessemer’s Venture Partner’s BVP Forge Fund, will be used for marketing efforts to help Givebutter scale its operations. Despite the company’s profitability and success in working with over 35,000 nonprofits and processing over $1 billion in donations, Friedman believes there is still a huge untapped market in the nonprofit sector.

With the growing trend of nonprofit-focused startups emerging in the tech industry, Givebutter is poised to capitalize on the increasing demand for innovative fundraising solutions. Friedman sees the potential for significant growth in the nonprofit market, as Americans donated nearly $500 billion to charity in 2022.

As Givebutter continues to expand its reach and impact in the nonprofit industry, Friedman remains optimistic about the future of the sector. He believes that nonprofits play a crucial role in addressing some of the world’s largest problems and is encouraged to see more investment and awareness in the space. Givebutter’s success story serves as a testament to the potential for tech-driven solutions to revolutionize the nonprofit fundraising landscape.