The crowdfunding platform GoFundMe announced Thursday that it has signed a deal to acquire the nonprofit fundraising company Classy, a move that will help the largest crowdfunding site further increase its influence in the philanthropic sector.
Under the agreement, Classy will become a subsidiary of GoFundMe and the two will operate separately under the leadership of GoFundMe CEO Tim Cadogan, according to a news release from GoFundMe.
The company didn't disclose details of the deal. But it said the "all-equity" deal was signed earlier this month and is expected to close in the first quarter.
"GoFundMe's vision is to be the most helpful place in the world and partnering with Classy enables us to do that in a differentiated way," said Cadogan, adding that the acquisition "can create a uniquely powerful network that connects donors on GoFundMe to nonprofits who use Classy."
According to Cadogan, $5 billion was raised by both companies last year — with nonprofits garnering $1.1 billion in donations on Classy's platform.
Classy CEO Christopher Himes said the acquisition will help nonprofits raise more money "so they can increase their programmatic impact."
"By leveraging the power and scale of the GoFundMe network, we can open doors to connect individuals giving to a GoFundMe campaign with the nonprofit organizations addressing the root cause driving the need," Himes said in the news release. "This is an opportunity that could change our industry in a way that has never been done before."
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