Three years ago, we launched an ambitious campaign to raise $11.5 million to scale and transform the resources and services TechSoup offers. We seek to expand the largest network of civil society organizations in the world, deepen our support to those we've served for decades, and nearly double the number of NGOs we serve.
We took a novel approach to fundraising for this campaign: engaging our whole community of stakeholders as impact investors, co-investing alongside us in TechSoup's future.
One component of the growth capital campaign is our direct public offering, or DPO. The DPO is a community investment campaign embodying our belief that TechSoup should be financed by people and entities of all economic backgrounds. The DPO enables us to offer debt securities as an impact investment to U.S.-based individuals and smaller organizations in our community with investment minimums as low as $50. With the success we've had so far, these funds are being used to
- Expand our nonprofit marketplace
- Provide increased validation and data services
- Develop more apps for good
- Improve our business processes and systems
- Continue to develop our Cooperative Technology Platform (CTP)
As of today, we are proud to report that we have raised $9,232,020 — 80 percent of our $11.5 million fundraising goal! To keep this momentum going, we need your support now more than ever to help us cross the finish line. Our goal is to wrap up our growth capital campaign in September, so now is the time to join our community of investors and donors.
Our Direct Public Offering
The DPO is structured so that people of all economic backgrounds can invest in TechSoup.
There are three types of investments:
- Risk Capital Note* — $50,000 minimum, 5 percent annual interest
- Patient Capital Note — $2,500 minimum, 3.5 percent annual interest
- Community Capital Note — $50 minimum, 2 percent annual interest
*Available to accredited investors and institutions only
Since our launch in November 2018, we've received a wide array of investment and grant capital from a diverse group of individuals and institutions that believe in our mission. Investments range from $50 to over $1 million and have come in from individuals, private and community foundations, nonprofit organizations, and corporations. Our board members and many of our employees have also become investors.
I wanted to invest so that I could have a ringside seat to see how TechSoup is raising this money, and to see what kind of tech innovations will be developed with the money they raise. I'm interested to see how TechSoup is going to help define the future of tech for good.
— Jim Fruchterman, founder/CEO of TechMatters and DPO investor
Here are some highlights from the last three years:
- At the start of our campaign, we received a $4 million loan from the Nonprofit Finance Fund (NFF), a lender and consultant to the social sector with a 40-year history of supporting changemakers of all kinds.
- In 2019, Microsoft Philanthropies invested $1 million in our DPO, and VMware provided a $2.5 million recoverable grant.
- In July 2020, Okta for Good invested $300,000 in the DPO.
- Individual investors have made investments ranging from $50 to $200,000.
We Are Closing in on Our Goal!
We have created an innovative model for nonprofit fundraising that has successfully engaged our diverse community of stakeholders. We've also been able to make steady progress on our fundraising goals, all while also focusing a majority of our resources on supporting nonprofit partners during the COVID-19 crisis through our COVID-19 Recovery Fund and critical resource hubs like this one.
This video tells the story of how the TechSoup Global Network quickly adapted to support more organizations' ability to serve their communities at the start of the COVID-19.
Now we are asking you to help us make it across the finish line. Please consider supporting the Growth Capital Campaign through an investment or a donation today. We can also accept investments from donor advised funds and self-directed retirement accounts, as well as donations of appreciated stock. If you have any questions about the best way to participate, you can reach us at invest@techsoup.org.
We believe that a strong, well-resourced civil society is key to facing our most pressing global challenges together. Join us to help make that happen.
Additional Resources
- Why Is TechSoup Investing to Improve Its Business Processes?
- Why Is TechSoup Investing in a Cooperative Technology Platform?
- Why Is TechSoup Investing in Validation and Data Services?
- Why Is TechSoup Investing in a New Nonprofit Marketplace?
- Why Is TechSoup Investing in Apps for Good?
Top photo: Shutterstock
