Crowdfunding platform GoFundMe announced Thursday that it has signed a deal to acquire Classy, a non-profit fundraising company.
Crowdfunding platform GoFundMe announced Thursday that it has signed a deal to acquire nonprofit fundraising company Classy, a move that will help the largest crowdfunding site increase its influence in the philanthropic sector.
Under the agreement, Classy will become a subsidiary of GoFundMe and the two will operate separately under the leadership of GoFundMe CEO Tim Cadogan, according to a news release from GoFundMe.
The company did not disclose details of the deal. But it said the “all-equity” deal was signed earlier this month and is expected to close in the first quarter.
“GoFundMe’s vision is to be the most helpful place in the world, and partnering with Classy enables us to do it in a different way,” Cadogan said. The acquisition “could create a uniquely powerful network that connects donors on GoFundMe with nonprofits that use Classy.”
According to Cadogan, $5 billion was raised by both companies last year — with nonprofits raising $1.1 billion in donations on Classy’s platform.
Classy CEO Christopher Himes said the acquisition will help nonprofits raise more money “so they can increase their programmatic impact.”
“By leveraging the power and scale of the GoFundMe network, we can open the door to connecting individuals who give GoFundMe campaigns to nonprofits with non-profit organizations,” Hims said in the news release. “This is an opportunity to transform our industry in a way that has never been done before.”
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