Popular fundraising website GoFundMe, which has made news headlines various times with heartwarming stories of people raising money to pay for life-saving operations among other things, has made news again as it seeks to acquire CrowdRise, a fundraising site aimed at raising money for charities and non-profits like the Boston Marathon, Red Cross, and the American Cancer Society.
Where GoFundMe has been the most popular fundraising source for individuals, CrowdRise had been the standard for charities while also competing in the market with individuals, and now the two will become one corporate entity. After the acquisition, individuals seeking money will be redirected to GoFundMe, eliminating any competition between the sites. CrowdRise will be reserved exclusively for nonprofit causes and will expand their focus to fundraising for large organizations.
On the merger, GoFundMe CEO Rob Solomon cited the companies’ perfect synergy and identical visions as reasons to be excited about the merger. He hopes that now the companies will be able to better offer the perfect fundraising solutions for both organizations and individuals.
As of current reports, CrowdRise’s employees will all be staying on in the acquisition, but it is unknown if any will move to work on GoFundMe or vice-versa. Financial terms of the acquisition have also not yet been disclosed to the public.
GoFundMe has raised a total of $3 billion since 2010 from over 25 million contributors and over 2 million individual fundraising campaigns. CrowdRise has over 1 million individual members and over 20,000 charities. They have raised over $500 million dollars across all their campaigns. It was started by actor Edward Norton and producer Shauna Robertson in collaboration with Robert and Jeffrey Wolfe back in 2009.