Pactman

In a world with over 10 million Nonprofits, and at least 736 million people below the global poverty line, a significant challenge looms: the struggle to channel funds effectively to Nonprofits that can make the most meaningful impact on the lives of people in low-income communities. This issue is twofold - nonprofits face hurdles in raising sufficient funds for their vital missions, while donors worldwide grapple with identifying the most impactful and trustworthy organizations to support. 

The staggering number of nonprofits not only risks redundancy and the inefficient allocation of human and financial resources but also means that funding often doesn't reach those organizations that can deliver the greatest social impact. Shockingly, research by the Hewlett Foundation (Hewlett Foundation Paper, 2023, p. 16) has shown that a mere 7% of the largest nonprofits receive a disproportionate 58% of total donation revenues, leaving small, effective nonprofits, closely attuned to the needs of low-income communities, struggling for the financial lifeline they deserve. 

The global nonprofit marketplace is fragmented and far from efficient, unlike the streamlined dynamics of the stock market or e-commerce giants like Amazon. Consequently, nonprofit funding worldwide is not optimized, failing to reach the most effective and efficient organizations. The result? A lower global social impact per dollar than what could be achieved. 

With support from the MIT Solve Global Challenge Program and Microsoft Founders Hub, our goal (to start) is to impact at least 50,000 people, in the short term (c) offer an objective method for community ratings of local nonprofits and (d) provide an easy way for Global Donors to fund the most deserving of these nonprofits. 

This groundbreaking project is in line with USAID’s localization initiative and serves as a litmus test, examining whether our innovative approach can be scaled locally and to other countries, ushering in a new era of increased funding for the most effective, transparent, and trustworthy nonprofits in developing Nations. In doing so, we aspire to tackle global societal challenges, beginning with the alleviation of poverty and extending to a brighter, more impactful future for millions of people worldwide.

Key Links/References

• 1)Hewlett Foundation Paper. (2023). https://hewlett.org/wp-content/uploads/2016/08/whitepaper.pdf

Imagine a dynamic online marketplace that brings together passionate donors and impactful nonprofits, revolutionizing the way we give. Our innovation  can be described as the 'Yelp for Nonprofits' meeting the spirit of GoFundMe, and it's poised to transform philanthropy as we know it.(see a video version of our early beta version here: https://videodemo.trypledge.or...)

 Enter our solution—a one-stop platform that simplifies the painstaking process of choosing the right nonprofit to support and facilitates seamless donations. We bridge the information gap by making it effortless to discover the best and most efficient nonprofits, instantly connecting donors with organizations making a real impact. 

But our innovation doesn't stop there. We're tackling another challenge donor’s face: Empowering even people (in developed countries) without financial resources to donate to others across the globe. By allowing people to convert otherwise routine physical activity (like jogging, cycling, walking) into donation dollars, we will do just this.

 With the backing of  the MIT Solve Global Challenge Program and the Microsoft Founders Hub, we're committed to enhancing our platform's capabilities. We're creating an engaged community of donors, volunteers, and nonprofits, fostering meaningful connections and driving positive change.

Our innovation primarily impacts two key target populations. 

• It directly benefits the millions of people living below the global poverty line in low-income communities worldwide. By addressing the challenge of inefficient nonprofit funding allocation, our company through our project aims to ensure that vital resources reach the nonprofits that can make the most meaningful impact on their lives. This includes access to essential services, improved living conditions, and opportunities for upward mobility, ultimately contributing to poverty alleviation.

• Furthermore, our innovation has a significant impact on the nonprofit sector itself. It empowers small and effective nonprofits, close to the needs of low-income communities, by providing them with a platform to showcase their work, gain visibility, and access much-needed funding. This enables these nonprofits to scale their operations and expand their reach, amplifying their positive impact on the communities they serve.

Our team is uniquely positioned to deliver this solution because we have a deep understanding of and connection to the communities we aim to serve. The Team Lead (Kolapo Akande) and our team members have direct experience with nonprofits, either as volunteers, donors, or beneficiaries, giving us firsthand knowledge of the challenges and needs within these communities. We are African Immigrants to the U.S, come from diverse backgrounds, and  have worked with grassroots NGOs, and local community groups.

 Importantly, our solution has been developed in close collaboration with the target population. We have actively sought input, ideas, and feedback from both donors and nonprofits to ensure that our platform meets their needs and addresses their pain points. Through focus groups, surveys, and interviews, we have listened to their concerns and incorporated their suggestions into the design and implementation of our platform. For example, the idea of converting physical activity into donation dollars came directly from discussions with potential donors who wanted to contribute but lacked financial resources.

 Furthermore, our existing partnership with Microsoft Founders Hub demonstrates our commitment to enhancing our platform's capabilities and reaching a wider audience. This partnership (in addition to one with MIT Solve) will provide us with access to resources, expertise, and networks that will enable us to scale our solution effectively and sustainably.

 Overall, our team's proximity to the communities we serve, coupled with our collaborative approach and strategic partnerships, make us the right people to design and deliver this innovative solution to revolutionize philanthropy and drive positive change.

1. Public Beta Launch:                                                                                  We have built an early version of the nonprofit marketplace application (This was launched on the 3rd of January 2024). We had earlier described our application as a Yelp for Nonprofit with the spirit of GoFundMe. Currently, we have built the Yelp for Nonprofit’s piece of the application, and are currently imbuing the application with the spirit of GoFundme.       
2. In terms of User traction

  User data as at January 30th 2023, after under 30 days of launch:

• 30 day user activity:   3,400 users      
•  7    day user activity:  2,600 users
• 1    day user activity:  754 users

3. Other Traction:

• Digitized data for 2.6M nonprofits.
• Received a Grant from Microsoft 
• Got accepted to Seed Spot (a Social Impact Accelerator)

We are applying to Solve because we believe in the power of innovation to address complex social challenges and create meaningful change. Our platform, which aims to revolutionize philanthropy by creating a dynamic online marketplace connecting donors with impactful nonprofits, aligns closely with Solve's mission to support innovative solutions with the potential for scalable impact.

While our team is passionate and driven, we recognize that there are several barriers that we may encounter in scaling our solution effectively. These barriers include financial constraints, technical challenges in building and maintaining a robust online platform, legal considerations related to compliance and data protection, cultural barriers in engaging diverse communities, and market obstacles in gaining traction and adoption.

We believe that Solve can help us overcome these barriers by connecting us with partners who can provide both monetary and non-monetary support. Through Solve's network of philanthropic organizations, technology experts, legal advisors, and community leaders, we hope to access funding, technical expertise, legal guidance, cultural insights, and market connections that will enable us to overcome these challenges and realize the full potential of our solution.

Moreover, Solve's emphasis on collaboration and partnership aligns with our approach of fostering meaningful connections between donors, volunteers, and nonprofits to drive positive change. By becoming a part of Solve's community, we aim to leverage the collective expertise and resources of like-minded individuals and organizations to amplify our impact and create lasting social transformation.

In summary, we are applying to Solve not only to raise funds but also to access the support, expertise, and connections needed to overcome the various barriers we face in scaling our innovative solution. We are committed to working collaboratively with Solve and its partners to drive positive change and make a meaningful difference in the world of philanthropy.

Our Competitive Advantages:

AI-Assisted Marketing: Our platform will utilize cutting-edge artificial intelligence technology to showcase nonprofit achievements effortlessly. Through intelligent algorithms, we will curate and highlight the impactful work of nonprofits, minimizing their effort in marketing and maximizing their reach to potential donors. By streamlining the process, we will empower nonprofits to focus more on their mission and less on marketing strategies, ultimately driving greater engagement and support from the community.

Opt-out Donation Model: We have implemented an innovative opt-out donation model that facilitates revenue growth for nonprofits without requiring explicit onboarding efforts. Our platform will seamlessly integrate donation opportunities into the user experience, making it easy for supporters to contribute to causes they care about. Through this model, we encourage spontaneous giving and empower users to make a difference with minimal friction, resulting in increased revenue streams for nonprofits and sustained support for their initiatives.

Move4Good Donation Feature: In addition to traditional donation channels, our platform will introduce the Move4Good donation feature, which will convert physical activity into donation dollars. Leveraging the growing trend of fitness and wellness, users can set personal fitness goals and pledge to raise funds for nonprofits based on their activity levels. Whether it's running, cycling, or yoga, every step or movement contributes to meaningful donations, creating a powerful incentive for users to stay active while supporting worthy causes.

These competitive advantages not only differentiate our platform in the market but also align with the mission of MIT Solve to drive positive social impact through innovative solutions. We are committed to harnessing technology and creativity to empower nonprofits and amplify their impact on communities worldwide.

Our innovation presents a robust theory of change, supported by existing evidence, targeting the critical issue of inefficient nonprofit funding allocation. Here's how it works:

 Inputs:

Our project will track donations made through the platform, even from routine physical activities (like jogging, walking, and cycling), and make this information public (donors will still have the option to make their donations anonymous).

Activities and Outputs:

Nonprofits on our platform can showcase their achievements or projects completed using shared data. Through images, videos, and text, they can transparently display how they utilize inputs, including donor funds. 

Impact and Outcomes:

The platform will track tangible social outcomes derived directly from nonprofits' activities. For example, imagine a water well built in Kigali's Gasabo District, saving 2000 hours weekly for 1000 families. Our goal is to capture such information and subject it to community feedback to combat fraud. 

Existing evidence, like research from the Hewlett Foundation, emphasizes the urgent need for our intervention. With only 7% of the largest nonprofits receiving 58% of total donations, our initiative is crucial. By addressing funding inefficiencies for small and medium-sized nonprofits in impoverished regions and promoting transparency, we aim to enhance development outcomes for the poorest.

Reference: Hewlett Foundation Paper. (2023). https://hewlett.org/wp-content/uploads/2016/08/whitepaper.pdf

Our impact goals for our solution are:

Increased philanthropic engagement: We aim to increase the number of donors and volunteers engaged with nonprofits through our platform. We measure this by tracking the growth in the number of registered users, the frequency of donations made, and the level of volunteer participation facilitated through our platform. 

Enhanced transparency and trust: We seek to improve transparency in the nonprofit sector and foster trust between donors and nonprofits. We measure this by assessing user feedback on the ease of finding and evaluating nonprofits, as well as monitoring the ratings and reviews provided by donors and volunteers. 

Expanded access to philanthropy: We aim to empower individuals, especially those in developed countries without financial resources, to contribute to charitable causes. We measure this by tracking the number of donations made through non-monetary means, such as converting physical activity into donation dollars, and assessing the impact of these contributions on the supported nonprofits and communities. 

Amplified social impact: We strive to amplify the social impact of nonprofits by connecting them with a broader network of donors, volunteers, and resources. We measure this by evaluating the growth in donations received by nonprofits through our platform, as well as assessing the effectiveness of these contributions in addressing social challenges and improving the well-being of target populations. 

To measure our progress towards these impact goals, we employ a variety of indicators, including user metrics (such as user registrations, donation frequency, and volunteer engagement), platform performance metrics (such as user satisfaction ratings and platform usage analytics), and social impact metrics (such as the number of beneficiaries reached, the outcomes achieved by supported nonprofits, and the overall societal benefits generated by our platform).

 By regularly tracking and evaluating these indicators, we can assess our progress towards achieving our impact goals and identify areas for improvement and optimization in our solution. Additionally, we remain committed to refining our measurement framework in collaboration with stakeholders to ensure that our solution continues to drive meaningful and transformative change in the philanthropic landscape.

We have built a highly scalable web platform that can scale to serve millions of users. Several technologies were used in building this platform, including Azure, Kubernetes, PostgreSQL, MySQL, Python, and JavaScript.  We also use some machine learning algorithms to provide curated and highly relevant content to our donors, volunteers, and nonprofits on our platform.

Full-time staff: 6

Part-time staff: 1 Contractors (as needed): 3

About 1 year.

Ensuring diversity, equity, and inclusion (DEI) within our team is a core value of our organization. We recognize the importance of having a diverse team that reflects the communities we serve, as it fosters innovation, creativity, and empathy in addressing complex social challenges. 

Our leadership team is intentionally diverse, consisting of individuals from various backgrounds, experiences, and perspectives. We believe that diversity at the top is crucial for driving organizational change and creating an inclusive culture. We actively seek out and recruit team members from underrepresented groups to ensure that our team reflects the diversity of the communities we aim to serve. 

In addition to diverse representation at the leadership level, we have established specific goals for becoming more diverse, equitable, and inclusive as an organization. These goals include: 

Increasing representation: We aim to increase the representation of women, people of color, individuals with disabilities, and other marginalized groups within our team. 

Creating equitable opportunities: We strive to provide equal access to opportunities for professional growth, advancement, and leadership development for all team members, regardless of their background or identity. 

Fostering an inclusive environment: We are committed to creating a welcoming and inclusive environment where all team members feel respected, supported, and valued. This includes promoting open communication, actively listening to diverse perspectives, and addressing bias and discrimination whenever it arises. 

To achieve these goals, we have implemented various actions and initiatives, including: 

Implementing inclusive hiring practices: We use diverse hiring panels, conduct blind resume reviews, and actively recruit from diverse talent pools to ensure that our hiring processes are equitable and inclusive.

Overall, we are committed to fostering a diverse, equitable, and inclusive environment within our team, where all team members have the opportunity to thrive and contribute to our mission of driving positive change in the world.

Our Business Model includes the following components: 

a) Customer Segments: 

• Donors: Individuals who wish to contribute to charitable causes.
• Volunteers: Individuals interested in offering their time and skills to support nonprofits.
• Nonprofits: Organizations seeking funding and support for their initiatives.
• Nonprofit Professionals: Individuals working within nonprofits who may utilize the platform for networking or resource acquisition. 

b) Value Propositions: 

• Comprehensive Nonprofit Reviews: Providing a platform for thorough reviews and evaluations of nonprofits globally, aiding donors in making informed decisions about where to direct their contributions.
• Seamless Donation Process: Simplifying the donation process by offering a one-stop platform for making donations to any nonprofit, regardless of geographical location or financial constraints.
• Transformation of Physical Activity into Donations: Introducing an innovative feature that enables individuals to convert their everyday activities, such as such as jogging, cycling and walking, into charitable contributions, thereby empowering even those without financial resources to support causes they care about. 

c) Key Activities: 

• Software Development: Continuously improving and maintaining the online marketplace platform to ensure user-friendliness and functionality.
• Nonprofit Relationship Management: Building and nurturing relationships with nonprofits to encourage their participation and engagement on the platform.
• Data Sourcing and Validation: Collecting and verifying information about nonprofits to ensure accuracy and reliability for donors.
• Marketing: Promoting the platform to attract donors, volunteers, and nonprofits, and raising awareness about the transformative potential of charitable giving. 

d) Revenue Streams: 

• Donation or Platform Fees: Charging a small percentage or flat fee on donations made through the platform to sustain operations.
• Advertising: Offering advertising space to relevant businesses or nonprofit organizations looking to reach the platform's user base.
• Paid Memberships/Subscriptions: Introducing premium features or content for users willing to pay for enhanced functionalities.
• API Fees: Charging third-party developers for access to the platform's application programming interface (API) for integration purposes. 

e) Cost Structure: 

• Server Costs: Expenses related to hosting and maintaining the platform's servers to ensure uptime and performance.
• Developer Costs: Compensation for software developers responsible for building and enhancing the platform.
• Platform Admin Costs: Operational expenses associated with managing and administering the platform.
• Customer Service Costs: Resources allocated to providing timely support and assistance to users.
• Charity Interfacing Costs: Investments in facilitating communication and collaboration between the platform and participating nonprofits. 

By aligning these components, our business model aims to create value for both donors and nonprofits while establishing sustainable revenue streams to support ongoing operations and growth.

To scale our innovation sustainably and reach millions of people, we have devised a revenue model that is primarily based on private elements. Here's how we plan to achieve this: 

Revenue Model: 

Optional Tips on Donations Made: A proven revenue model that is modeled after GoFundme’s, will make available a default but optional tip for donations given through the platform. This fee will cover operational costs and allow us to reinvest in platform improvements. It will be a sustainable source of revenue. 

Premium Nonprofit Listings: Nonprofits that meet certain criteria for effectiveness and impact can opt for premium listings on our platform for increased visibility. They will pay a subscription fee for this feature, generating additional revenue. 

Data Insights and Analytics: We will offer data insights and analytics services to nonprofits, enabling them to understand donor behavior and improve their outreach strategies. This will be a fee-based service.

Path to Scale: 

Community Building: We will focus on building an engaged community of donors, volunteers, and nonprofits. This involves marketing efforts to attract users, encouraging nonprofits to join our platform, and facilitating meaningful connections. 

Technology Enhancement: We will continue to invest in cutting-edge technology. This will enhance the user experience and the effectiveness of our platform. 

Global Expansion: After establishing a strong presence in the U.S, we plan to expand to other countries. 

User Retention and Growth: We will measure success by tracking user retention rates and donation rates aiming for high engagement and satisfaction. As more users stay and engage with the platform, it becomes increasingly valuable and sustainable. 

Expected Impact:

We see a future where the donation landscape is revolutionized, seamlessly connecting donors with nonprofits worldwide. Just as Uber revolutionized transportation, envision a single donation app that empowers billions of individuals to support numerous causes effortlessly. Picture a world where donors transcend geographical boundaries, focusing on the intersection of location(s) and impactful causes like 'Poverty,' 'Animal Welfare,' and 'Arts,' - all facilitated by Pactman, ensuring every dollar makes a difference.