Benevity's Business Model
Benevity provides employee and customer engagement solutions for corporates and for non-profits, a portal for receiving support. Two of its competitors are Blackbaud Fundraising and MobileCause. Its additional revenue streams are B2B subscriptions and data insights and analytics. More details can be found below.
An Overview of Benevity
- Benevity was founded in 2008 and can be termed as a Software-as-a-Service (SaaS) company since it provides technological management platforms for use by non-profits and corporations looking to perform charitable actions. It raised $40 in Series C funding in 2019 from JMI Equity and General Atlantic. Such and other investments support the continuous innovation of Benevity's corporate goodness platform which helps companies engage their customers, employees, and communities in multiple purpose-driven activities such as giving and volunteering, community grant-making, sustainability initiatives, citizen activism, and others.
- With a large client community of 600+, Benevity has a 99% retention rate and a little over 600 employees. Overall, Benevity deems itself a global leader in employee engagement software and corporate social responsibility including volunteering, online giving, matching, and purpose-driven actions.
Products and Services
1. Corporate Solutions
- Employee engagement:
- Benevity's all-in-one technology allows clients to mobilize their employees, communities, and customers to take action when there is a disaster or crisis.
- Spark is software that provides for open-choice matching and giving.
- Payroll giving lets people give as they earn.
- "Missions" helps employees take positive actions that can potentially lead to major business, social, and personal impacts.
- Flexible volunteering software connects people to their communities.
- Customer engagement:
- The Benevity API lets clients integrate donations into different kinds of applications such as gift cards, rewards and programs, online banking, dedicated giving sites, and others.
- For non-profits, a portal is available for receiving support from over 18 million supporters from 650+ of the most iconic brands through volunteering and giving.
1. Bryan de Lottinville, Founder and Executive Chairperson
- Bryan is internationally recognized as a thought leader in the space, among the "top 100 Corporate Social Responsibility Influence Leaders," and a frequent blogger on corporate purpose.
2. Kelly Schmitt, Chief Executive Officer
- Kelly has been instrumental in driving continuity efforts in Benevity especially during the pandemic, ensuring that the organization supported corporations as they activated their global response efforts.
3. Steven Woods, Chief Technology Officer
- Steven joined Benevity to put his skills, passion, and experience to good use serving humanity. As a passionate technologist, he leads Benevity's team of analytics, development, and enterprise platform professionals.
4. Candice Li, Chief Financial Officer
- Candice leads the legal and financial functions of the business and the Operations team which has distributed more than "$6 billion in donations to 300,000 causes worldwide."
5. Sona Khosla, Chief Impact Officer
- Sona leads Benevity Impact Labs, a resource hub that brings cutting-edge data, insights, research, and best practices to enable individuals and organizations to maximize their impact, authentically living their purpose.
6. Anusha Srijeyanathan, Executive VP, Client Success
- Anusha leads client experiences through the Client Services, Goodness Consulting Teams, and Cause Support.
1. Blackbaud Fundraising
- Blackbaud Fundraising is donor management and cloud-based fundraising software suitable for organizations of all sizes. It allows organizations to spend more time focusing on their missions by streamlining reporting, data, and administrative processes in a single platform. The platform automatically processes pledges, online payments, and payments done through websites. Integrated multichannel messaging also allows organizations to reach new supporters and engage existing ones.
- MobileCause is an all-in-one fundraising software that provides "online, mobile, in-person and virtual events, and peer-to-peer fundraising software to help nonprofits engage donors and boost giving." MobileCause pioneered text-to-donate and has become trusted by non-profits looking to scale their fundraising fast and efficiently with no need to pay transaction fees.
The Competitive Advantage of Benevity
- Benevity's competitive advantage comes from the fact that it allows organizations to scale globally by creating more local and global impact with seamless experiences in multiple languages. With Benevity, clients can "engage their people, customers, and communities more deeply."
Benevity's Additional Revenue Sources
1. Pricing for Products and Services (B2B Subscriptions)
- Benevity states that the fees for services and features such as payroll donations, automated matching, API, Missions, and others that have been discussed in the products and services section above are included in the pricing for each.
- While no pricing information for these services was readily available on the website, this can be termed as a subscription or product fee that contributes to Benevity's revenue (B2B subscriptions).
- Subscription pricing is seen as one of the best ways to build a recurring revenue stream. This is because it is stable and predictable, with no need to sell units.
- Benevity has many new customers every year (which equals new subscriptions).
- The retention rate is also 99%, meaning that subscriptions remain constant.
- Therefore, B2B subscriptions can be deemed to be a revenue stream for Benevity.
2. Data Insights and Analytics
- On February 16, 2021, Benevity released Impact Labs, a resource hub and incubator for bringing new data, insights, and research to help individuals, nonprofits, and companies maximize their impact. Organizations will also be able to show how their actions are bringing measurable change.
- Impact Labs provides purpose-oriented research, data and reports, must-have resources for professionals and executives, and insights to develop authentic corporate purpose strategies.
- This is a new revenue source because anyone looking to read their reports such as this one titled, "Leading with Purpose in Extraordinary Times" has to purchase them.
- This is a steady revenue stream because according to a report from Salesforce, 53% of non-profits struggle to analyze their data and track/quantify their impact. Impact Labs, as a provider of data insights and analytics, proves to be a revenue source for Benevity.