Charleston, South Carolina-based Blackbaud Inc. (NASDAQ: BLKB), a leading global cloud software company powering nonprofits and other social good organizations, said it agreed to acquire London-based online social giving platform JustGiving for £95 million ($123 million).
JustGiving was founded in 2001 by Zarine Kharas and Anne-Marie Huby, becoming a leading social platform for giving. The company reported its first profitable year in 2006. Angel and VC investors Béla Hatvany, John Huysmans, Vesta Capital and Pollcast APS, are said to own a minority stake in the startup.
JustGiving says it enabled over 22 million people to raise over $4.5 billion for over 26,000 charities since it was launched. JustGiving charges a 5% fee on donations to cover the cost of running the business. The fee does not include card processing fees, which are deducted additionally.
Charities have to be registered with JustGiving to receive donations. Charity registration required a monthly subscription fee of £15 since 2002, regardless of whether any donations are made. In August 2016, Justgiving announced that charities receiving more than £15,000 per annum started paying £39 a month plus VAT, up from £15 a month. Charities raising up to £15,000 a month (Gift Aid included) continue to be charged £15 a month plus VAT.
Blackbaud connects and empowers organizations to increase their impact through software, services, expertise and data intelligence, serving the entire social good community—nonprofits, foundations, corporations, education institutions and individual change agents for more than three decades. The company provides solutions for fundraising and relationship management, digital marketing, advocacy, accounting, payments, analytics, school management, grant management, corporate social responsibility, and volunteerism. Blackbaud has operations in the US, Australia, Canada and the UK.
The deal comes as social and mobile giving continue to grow and fundraising driven by individual supporters rallying others in their networks, referred to as ‘peer-to-peer fundraising’ in the sector, plays a significant and growing role in charitable giving. JustGiving has been a leader in peer-to-peer fundraising for both nonprofit organizations as well as individuals (also known as personal crowdfunding), with people in 164 countries raising over $4.5 billion for good causes through its online platform since 2001.
“Today, people are willing to do more than ever before to support causes they care about, but they want to do it on their own terms,” said Jerry Needel, president and general manager of Blackbaud Consumer Solutions. “To put their passion into action, they need technology that gives them the power to connect with other change agents and organizations. Bringing JustGiving into the Blackbaud family reinforces our strong commitment to catalyzing the impact of individual change agents. It’s also part of our commitment to helping social good organizations navigate and respond to key shifts in giving behavior.”
The acquisition will enhance Blackbaud’s capabilities to serve both individual donors and nonprofits, expanding the peer-to-peer fundraising capabilities Blackbaud offers today through TeamRaiser and everydayhero, which are used by leading nonprofit organizations to connect their causes to the individuals who support them. The acquisition will also add a new personal crowdfunding capability that can be rolled out in the U.S. and elsewhere, as well as position Blackbaud to better serve the U.K. market, where it has operated for more than two decades, and where JustGiving is a fundraising leader.
“As a software leader exclusively focused on innovation that drives social good, it’s in our DNA to respond to and anticipate changes in the way people give and connect with causes,” said Mike Gianoni, president and CEO of Blackbaud. “This is an exciting next step in our commitment to delivering modern, mobile-first, integrated cloud technology that powers social good.”
Anne-Marie Huby, co-founder and managing director of JustGiving, said: “Social, mobile and the rise of crowdfunding combined are transforming the way people give, and the pace of change is unprecedented. By bringing together JustGiving’s community and social platform with Blackbaud’s unrivalled expertise and capabilities, we will be better able to help great causes reach more people and raise more money, more effectively and intelligently than ever before.”
The deal is expected to close later this year at the conclusion of a customary regulatory review in the UK. JustGiving staff are expected to transition to Blackbaud after the closing and become part of Blackbaud’s London-based International Markets Group, led by Jerome Moisan, senior vice president and president of Blackbaud’s International Markets Group.