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JustGiving is an example of a successful and profitable social business. In 2010 it reported profits of £3m and aims to provide returns to its investors. However it has been crucial in facilitating millions of donations into charities large and small.
About the company
Founded in 2000 by Zarine Kharas, JustGiving was set up to provide an online platform through which individuals could raise money for charitable causes. Its aim has been to make giving easier and more effective. In the 11 years since, it has successfully changed the face of charitable giving.
How does it make money?
JustGiving earns revenue from two primary sources. The company receives a 5% commission on all donations. In addition, any charity which registers on the site pays a £15pcm registration fee. The revenues have increased in line with growing traffic and use.
How is it social?
To date JustGiving has raised millions for charities worldwide. However its value goes much further than simply sums raised. It has been instrumental in expanding the reach of smaller, less fashionable charities. In a time in which donations are becoming increasingly difficult to find, JustGiving has been instrumental in keeping many small organisations afloat.
Financial success
JustGiving is now one of the most high profile and profitable social enterprises. In 2009 revenues reached £9.9m with profits of £3m.
What happens to its profits?
JustGiving reinvests a substantial amount of profits back into its business. However, it is now looking to produce a reasonable return to its investors. These individuals backed the project from the beginning and the company feels an obligation to reward their faith.
What's the secret of its success?
JustGiving has experienced a rapid increase in visitors and in membership from charities. This has been driven predominantly by word of mouth, but also by a number of key social media partnerships. The company invests substantially in perfecting user experience and building its online commmunity. Even so it has seen the arrival of new competitors.
