The team behind Atlanta-based Charityvest believes it is time to innovate the philanthropic space.
That means creating a FinTech solution that “delivers dollars to charities faster and more easily and in ways that make donors feel more comfortable,” said co-founder Stephen Kump.
Charityvest has expanded the use cases for donor-advised funds (DAFs), a tax-deductible charitable giving vehicle traditionally used by high net worth individuals. While those high net-worth individuals are using Charityvest as a more streamlined DAF experience, it is also opening up the space to other investors and do-gooders.
The team has expanded its product offerings recently and now allows for crypto, stock, and low-free ETFs investments. The team also launched an investment-enabled Donor Advised Funds last month.
“We’re building the financial architecture that we think is going to create the world’s best giving experience,” added Kump.
“The ability to invest is really much more about your projected timing of when you think money might get delivered to a charity rather than the amount,” Kump told Hypepotamus. Putting money in a DAF allows that money to grow while deciding what good cause the money should go to. “One of the biggest barriers to giving is it feels complex. But this is about getting people to commit charitable dollars sooner and faster in their life.”
There is also a bit of behavioral economics behind expanding the FinTech platform, said Kump. “You don’t have to figure out exactly how your money is going to change the world yet. You can allow time to be your ally…if you can go ahead and put money aside now, you’re going to get more engaged in philanthropy down the road.”
Seed investment to sow more philanthropy
The Charityvest team, now members of ATDC, just landed an investment of its own in the form of a $2.2 million seed round from Rick Jackson, CEO of Jackson Healthcare, DURO VC, and Ba Minuzzi, CEO of UMANA Family Office.
This brings the startup’s total capital raised to just under $6 million. Previous investors include Y Combinator, Teamworthy Ventures, Promus Ventures, and Sovereign’s Capital.
The platform has helped facilitate over $50 million in total giving to date and the new funding will go towards building out a mobile app and expanding Charityvest’s options to new donors.