Benevity's Business Model

Goals

To determine Benevity's business model by identifying its revenue streams and the amount of revenue that is made from each stream. This research will help with understanding how Benevity makes money.

Early Findings

Benevity

  • Benevity provides technology and software solutions that allow foundations and non-profits to manage their administrative functions, scale globally, and receive assistance with daily activities so that they can instead focus on raising money from donors. It is based in Canada and provides grant-management and charitable-donation management platforms.
  • It provides support to 2 million nonprofits worldwide, supports nearly every currency, and has seamless experiences in 20 languages.

Revenue

  • This 2011 source that quotes Benevity states that the company has a "transaction fee-based revenue model," meaning that when a donation is made, even though the donors receive a tax receipt for 100% of their donation amount, Benevity receives a 5-7% administrative charge before the funds are disbursed to the cause(s).
  • The foundation pays a royalty for using Benevity's software platform out of this administration fee and in return, all the other aspects of the donation processing such as corporate matching and tax receipts are done by Benevity on an outsourced basis.
  • The philosophy of Benevity's pricing model is to make the adoption of its software inexpensive. This helps the social mission and business purpose of Benevity and is the essence of its B-Corporation model.
  • This article states that Benevity makes money by taking a percentage of the donation amount that is given to charities as a support fee.
  • The Globe and Mail states that most of Benevity's revenue comes from extracting a support fee from donations made by big corporate clients, with the fee reduced for large individual transactions.
  • In 2017, Benevity was one of Technology Fast 50 winners, with revenue growth of 5.41%.
  • According to Owler, Benevity has an estimated annual revenue of $100 million.
  • This source states that Benevity's annual revenue in 2018 was $45 million.
  • According to Growjo, Benevity's annual estimated revenue is $96 million.

Summary of Early Findings

  • We spent the first hour of research trying to determine whether the requested information is publicly available, but unfortunately, some of it it was not.
  • Benevity does not provide any reports of its revenue or any other identifying information that can be used to determine multiple revenue streams and the amount of revenue that comes from each. There is also no publicly available information from other sources like Crunchbase, D&B, and Owler that can be used to either provide direct information or triangulate these revenues. On revenue streams, the time constraint made it difficult to identify multiple sources.
  • On the revenue streams, there was no way to determine any other revenue sources apart from the software provided by the company either from the company's website or other external sources within one hour. However, there was a consensus on the major revenue stream, which was taking a percentage of the total donation amount that is given to the charities that subscribe to its services.
  • However, we did find sources that provided ballpark estimates of the company's overall revenue or revenue growth in and this information was provided in the early findings.
  • We determined that there could be other revenue sources that can be identified with additional research.
  • Please select one or more of the options provided in the scoping section below. In case of any additional comment, please furnish it in the selected step.

Research proposal:

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