GoFundMe To Acquire Classy
Classy has joined the nonprofit tech mergers and acquisitions boom of 2022, with crowdfunding platform GoFundMe announcing this morning that it has reached an agreement to acquire the San Diego-based nonprofit fundraising software company that recently announced raising $1.1 billion on its platform last year.
Classy will become a subsidiary of GoFundMe, with the two companies operating separately, but both under GoFundMe CEO Tim Cadogan. Classy CEO Christopher Himes, will report to Cadogan. The all equity deal was signed Jan. 6 and is expected to close in the first quarter of 2022.
GoFundMe, the largest crowdfunding platform with more than $15 billion raised since its 2010 founding, provides fundraising capabilities for individuals as well as nonprofits, but with the addition of Classy, it will be able to expand its reach and even connect its donors with nonprofits whose missions align with its crowdfunding campaigns.
“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,” Himes said in a statement. “This is an opportunity that could change our industry in a way that has never been done before.”
Nonprofits could potentially reach an entire new network of donors with this capability.
“This could mean someone who makes a donation to an individual whose house was destroyed by a devastating hurricane or wildfire [could] get the immediate help they need to rebuild, then [the donor could be] connected to a nonprofit that focuses on addressing the underlying causes of climate change,” Cadogan said in a blog post.