*Written by Anne Schulze*
When John made a heartfelt donation of $100 to his nephew’s baseball team, he was stunned to discover that only $80 reached the team. “I was shocked,” John recalls. “Why did the fundraising company deserve 20% of my donation? It just didn’t seem fair to the kids or those of us trying to support them.” Almost all fundraising companies take a significant donation cut, but the donors are rarely aware of this fact. It’s been the secret of the school fundraising industry for the past decade.
Schoolfundr is emerging as a game-changer in the industry, charging only standard credit card processing and covering the costs of providing their service through optional donor tips. Their unique fee-free approach is starkly different from legacy companies in the space. For example, Snap! Raise, the largest player in the K-12 digital fundraising market has invested over $90mm of private equity money and relies on a 20% or more take-rate on every donation.
Dennis Levene, CEO of Schoolfundr, articulates the vision behind their model. “We’re not just a fundraising platform; we’re partners in education, and we will not be greedy like our competitors with pricing. By forgoing the usual cut and relying on optional donor tips, we ensure that a greater portion of donations directly supports school programs.”
This strategy is proving particularly appealing to athletic directors and coaches. With Schoolfundr, a larger share of the funds raised goes back to the schools, offering a substantial advantage in an environment where every dollar counts.
Even voices within the traditional fundraising industry acknowledge Schoolfundr’s impact. An anonymous employee from SnapRaise mentions, “From an industry perspective, Schoolfundr’s offering is a no-brainer for coaches and athletic directors. They offer schools a more than comparable core product and similar, if not better, completely free customer service. It’s only a matter of time before such transparent and efficient models take the lead in the industry.”
The difference in pricing structure is stark. While SnapRaise and similar companies typically charge over 20% in fees, Schoolfundr’s approach of only applying standard credit card processing fees significantly maximizes the funds retained by schools. This approach aligns with the growing demand for transparency and efficiency in school fundraising.
Schoolfundr’s strategy is not just financially advantageous; it also strengthens community engagement. Donors who see that their contributions are funnelling directly into school programs are likelier to participate and give generously. This sense of direct impact and community support is a crucial factor driving Schoolfundr’s growing popularity.
The industry’s response to Schoolfundr’s model underscores a shifting landscape in school fundraising. Despite some skepticism about relying on donor tips, the trend indicates a growing preference for models prioritizing direct funding to schools over company profits.
“We are solely focused on supporting our athletic directors, coaches, and student-athletes and providing them with a purpose-built software platform and dedicated support, all at no cost to the school,” added Levene. “Our value proposition is resonating in the market, and how quickly our business is growing has validated our business model and proved it sustainable.”
Schoolfundr’s approach is more than a competitive strategy; it reimagines school fundraising. As the industry continues to evolve, the effectiveness and popularity of Schoolfundr’s model suggest a promising future where schools can achieve their goals through more efficient and transparent fundraising methods.
If every school in the country used a fee-free solution like Schoolfundr instead of expensive legacy providers, there is no arguing the world would be a better place.