GoFundMe, the trusted leader in online fundraising, announced today it has signed a definitive agreement to acquire Classy, a leading modern nonprofit fundraising software company. The addition of Classy accelerates opportunities to service the nearly $500 billion U.S. philanthropic market as GoFundMe aims to be the most helpful place in the world.
Classy is a rapidly growing giving platform that enables nonprofits to connect donors with the causes they care about, empowering thousands of nonprofits to unlock the generosity of their supporters and helping them advance their respective missions. In 2021, $1.1 billion was raised by nonprofits on the Classy platform, bringing total all-time donations to nearly $4 billion.
The acquisition will create a global leader in modern giving across B2C and B2B, accelerating growth and creating new opportunities to reach more people and organizations across the world. Additionally, it will enhance donors’ ability to discover new causes and organizations to support by providing a personalized and expansive giving experience. For nonprofits, the scale of the combined companies will unlock new opportunities to reach broader audiences and further build relationships with current donors through the addition of new resources and paths for growth.
“GoFundMe’s vision is to be the most helpful place in the world and partnering with Classy enables us to do that in a differentiated way,” said Tim Cadogan, CEO of GoFundMe. “$5 billion in donations was raised on the GoFundMe and Classy platforms in 2021 – together, we can create a uniquely powerful network that connects donors on GoFundMe to nonprofits who use Classy.”
“Classy’s purpose has always been to help nonprofits raise more so they can increase their programmatic impact. This acquisition will do just that; accelerating our existing velocity and providing opportunities to expand into new offerings, including workplace giving and donor acquisition,” said Christopher Himes, Classy CEO. “By leveraging the power and scale of the GoFundMe network, we can open doors to connect individuals giving to a GoFundMe campaign with the nonprofit organizations addressing the root cause driving the need. This is an opportunity that could change our industry in a way that has never been done before.”
The announcement comes after five years of sustained donation volume and significant milestones for GoFundMe. Since the company’s founding in 2010, more than $15 billion has been raised on GoFundMe from 200 million donations. In March 2020, Tim Cadogan was named CEO and under his leadership, the platform has enabled tens of millions to both get and give help throughout the world. Cadogan has also hired top technology executives, including Juan Benitez as President and CTO, and Musa Tariq as CMO. In the past 12 months the company also welcomed three new board members: Sharda Caro Del Castillo, Jonathan Mildenhall and Scott Wagner.
“GoFundMe and Classy both have social purpose at their core, which is increasingly important to investors, employees and stakeholders,” said Woody Marshall, General Partner at TCV. “The combination of these two online fundraising leaders will accelerate platform innovation and create new social impact solutions for individuals, nonprofits and corporations.”
“GoFundMe and Classy are the world’s leading fundraising tools for people and organizations,” said John Locke, Partner at Accel. “Together, they will enable more giving to important causes globally. We’re excited to see what the two companies do together in the years ahead.”
Classy will be a subsidiary of GoFundMe and the two companies will continue to operate as separate entities under Tim Cadogan’s, GoFundMe CEO, overall leadership. Classy CEO Christopher Himes will report to Tim Cadogan.
The all-equity deal was signed on January 6, 2022 is expected to close in the first quarter of calendar year 2022, subject to receipt of regulatory approvals and other customary closing conditions.
Goldman Sachs & Co. LLC served as the exclusive financial advisor and Wilson Sonsini Goodrich & Rosati served as legal advisor to GoFundMe.