The all-equity deal was signed on 6 January, and is expected to close in the first quarter of this calendar year, subject to receipt of regulatory approvals and other customary closing conditions.
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.
In 2021, $1.1 billion was raised by nonprofits on the Classy platform, bringing total all-time donations to nearly $4 billion, while since GoFundMe was founded in 2010, more than $15 billion has been raised on it from 200 million donations.
GoFundMe’s acquisition of Classy aims to accelerate growth, enhance the donor experience, and create new opportunities for nonprofits to reach broader audiences and further relationships with current donors.
Tim Cadogan, CEO of GoFundMe said:
“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. $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.”
Christopher Himes, Classy CEO commented:
“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. 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 organisations 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.”
More on GoFundMe: GoFundMe opened up to let people fundraise for charities in 2018 – prior to this people could solely crowdfund for individuals.