Philanthroper is doing to charity what Groupon did to the world of coupons. In other words, just like Groupon promotes group buying, Philanthroper promotes group donations. The Chicago based startup works with one charity each day, and try to motivate as many people to donate a single dollar to that charity, as they possibly could find.
Philanthroper has also teamed up with mPayy, another Chicago based micropayments startup, to avoid losing their micro-donations in transactional costs. mPayy merely charges one cent on the dollar, while Philanthroper gets to keep nothing. In this way, 99% of all the donations reach their respective charities each day.
In order to put mPayy’s contribution in this noble cause into perspective, PayPal would have charged 30 cents on the dollar, thereby taking 30% of the donations away from the charities right at the start.
Philanthroper also has a thorough process of vetting charities, which it states as follows:
[W]e’re interested in nonprofits that make $1 million or less in revenue a year who are doing something really exceptional – bringing tangible change. […] We look at their 990s (tax returns), read whatever information is out there and actually talk to these groups to really understand their mission from their perspective.
So far so good, but how exactly does Philanthroper plans to make money. Philanthroper hopes to sell ads on their site, once it gains traction.
But whether Philanthroper makes money or not is irrelevant at this moment. The basic idea of enabling a group of people to help out good charities in a little way, is enough of a reward in its own right.