Over the next few months, we’re going to open the Crowdvance platform to the masses, and are going to become the standard for fundraising. Our model just makes sense, says Fox.
Washington, DC (PRWEB) June 18, 2013
Crowdvance.com announced today that the company is dropping the service fee it deducts from donations to 0%, down from 6.5%. Dylan Fox, CEO of Crowdvance stated, “When we launched Crowdvance, we set out on a mission to help organizations run more engaging, effective, and efficient fundraisers. We got the engaging part down by rewarding donors with gifts from great national companies we partner with, but our fee was getting in the way of our company reaching all of our goals.”
By removing the company’s service fee, Crowdvance.com becomes the first for-profit online fundraising platform to be 100% free.
Most other crowdfunding and fundraising platforms continue to promote the same model: no cost to sign up, but the various platforms deduct 3-10% from donations as a service fee on top of universal credit card processing fees. As of today, Crowdvance becomes one of the only online fundraising platforms on the planet that does not deduct an additional service fee on top of standard credit card fees.
Crowdvance announced this service fee reduction after completing a recent round of seed-stage financing. “After we closed our seed round, we were able to think longer term, and that’s when our team realized we wanted to go big and really change the game,” said Fox.
Crowdvance.com’s 100% free model is not the only unique aspect to its fundraising platform. The company strives to be more than just a passive middle-man like other fundraising websites. It does this by forming partnerships with national companies to arrange exclusive gifts for donors to choose from as a reward for their donation. Current partners include companies like Hulu and Fathead.
“We saw that donors were getting burned out with traditional and online fundraising campaigns,” said Zachary Herman, CMO of Crowdvance. “With traditional fundraisers, small organizations are wearing out donors by trying to sell them the same bland fundraising products every year. How many tubs of popcorn or t-shirts can someone buy? And with more organizations making the switch to online fundraising, donors are experiencing fatigue. We solve that problem by rewarding donors for their good behavior. Donors can save on things like concert tickets or pro-sports tickets, or even on jewelry, as a reward for contributing through Crowdvance to an organization they care about. Plus, now a donor can have their donation go where it is intended to go."
As the only for-profit fundraising platform that passes on 100% of donations received for processing, Crowdvance is poised to disrupt the entire online fundraising industry.
“We can support a 0% service fee because of our innovative business model,” said Fox. “We’re focusing on the value we deliver to national companies as our main business, and passing the benefits back to the organizations that use our platform to raise funds, making it entirely free.”
Crowdvance has always had a values focus. It won first place in the international Values and Ventures Business Plan Competition in April, 2013 and now the company feels even stronger about its ability to focus on its values mission.
“Over the next few months, we’re going to open the Crowdvance platform to the masses, and are going to become the standard for fundraising. Our model just makes sense,” says Fox.