A Chicago startup wants to make giving to charity as easy as shopping for a Bears jersey online.
Giftfluence, which launched this week, creates crowdfunding pages for non-profits, but with a twist. Instead of just giving money to the charity, Giftfluence partners with retailers who donate a percentage of the sale back to the non-profits. The startup has around 70 retail partners on board, including Best Buy, Nordstrom, Groupon, Wal-Mart, and the Chicago Bears.
Here's how it works: Giftfluence allows charities to create a fundraising page where users can learn about the organization. Each page has a shopping section that's broken down by department--like apparel, electronics, food and beverage, etc.--where users are then taken to the specific retailer's site. Once a user is directed to the Chicago Bears website, for example, Giftfluence's technology tracks that user's purchase, and the Bears send a commission to the startup, who then distributes it to the charity after taking a small percentage of the transaction for itself.
Giftfluence allows users to give traditional dollar-amount donations through its site as well.
The percentage retailers give varies, but it's usually between 2% and 7%. Co-Founder Ryan Charnov said that during the 3-6 month campaigns non-profits can expect to raise between $500 and $1,000.
Charnov said that brands have been eager to sign up for Giftfluence as they see that shoppers are more concerned about the social responsibility of brands today than ever before.
"I think in the future, organizations aren’t going to just compete against (competitors') price and quality, they’re really going to compete in terms of their social brand and the social good that they provide," Charnov said.
The startup is also looking to change the way people think about charitable giving, and shopping in general. Giftfluence wants shoppers to know there's a way they can purchase that same Bears jersey they were going to buy anyway, but give to charity as the same time.
"The big change we’re trying to make from a consumer perspective is having consumers think about where they’re going to buy, with the understanding that buying through us gives to charity," he said. "Our goal is to keep it as simple as possible in your everyday activities to give back to your community."
So far Giftfluence has 2 charities on its site, with another six to eight it expects to announce in the coming weeks, Charnov said.
Charnov, who left his job as a consultant three weeks ago to work on Giftfluence full time with his co-founder Mohammad Abou-Awad, said many charities already work with brands on promotional events--like eating at a specific restaurant or shopping at a certain store, with a percentage of the proceeds going to the non-profit. But Giftfluence is bringing that experience online, making it more convenient and efficient for everyone involved, he said.
Image via Giftfluence
