The U.S. finance industry finally has a way to compete with the likes of PayPal and other digital and social platforms when it comes to charitable giving. Today cloud-based charitable giving operator, in/PACT, announced it has agreements in place with a number of financial institutions to introduce its consumer-facing charitable giving platform GoodCoin.
Nearly $400 billion is contributed to nonprofits in the United States annually, with more than 70% coming from individual donors. With digital giving growing at double digit rates, banks and credit unions have seen their customers migrate elsewhere as they give to the charities of their choice.
With GoodCoin, a cloud-based platform specifically designed to be embedded in the online banking experience, donors are able to make contributions directly from their banks or mobile banking apps.
The financial institutions signed encompass a potential audience of 76 million banking customers. GoodCoin counts FIS, ICBA and CSCU among its customers, as well as a growing number of community banks and credit unions across the country.
in/PACT said it expects to have more financial service institutions signed up between now and the end of the year. “GoodCoin caters to financial institutions of any size anywhere in the country,” said in/PACT Co-Founder and CEO, John McNeel. “Much of this will be achieved through our partnerships, such as with FIS, where we are already showing signs of success.”
A white-labeled integrated solution, GoodCoin includes a searchable database of over one million charities, a customizable user interface and donor dashboard, and a backend processing platform. Donors are able to keep track of all of their charitable giving, right through to getting tax receipts at the end of the year.
GoodCoin was launched at the Money 20/20 payments industry conference in Las Vegas last October, where in/PACT Chief Revenue Officer, Hector Pages, announced “We’re growing the world’s heart by allowing banks to drive meaningful engagement with their customers through charitable giving.
“Community banks are always looking for ways to give back to their communities,” ICBA Bancard President and CEO Tina Giorgio said. “Through this new charitable giving platform, community bank customers will have an opportunity to give to the causes they care about via an online payments platform.”
in/PACT points to the trust advantage for donors of being able to manage their giving through their bank, at a time when online payment fraud, cybersecurity issues and nonprofit scams are rampant.
“One of GoodCoin’s unique characteristics is that customers never have to leave the safety of their financial institution to make a charitable contribution,” emphasized McNeel.
While U.S. financial industry giants have been trying to combat disruptors in the online payments space for years with initiatives such as Zelle in peer-to-peer payments, many of these solutions reinforce the migration away from traditional banking. GoodCoin is designed to keep charitable donors within their bank’s brand and digital customer experience.
GoodCoin competes with digital players that have added a charitable giving capability, such as PayPal — which has grown quickly in charitable donations, processing more than $9B in contributions last year. But GoodCoin also aims for wider appeal, reaching out to a broad-based demographic group it calls “aspirationals,” which encompasses the all-important Millennials but extends to all people who want their interactions with brands and institutions to be governed by purpose.
“Today, the need to be purpose-based has become table stakes for companies — the question now is how to drive engagement one-on-one with customers around causes they care about the most,” said Jim Stengel, Chairman of the in/PACT Advisory Board and the former CMO of Procter & Gamble. Stengel is the author of Grow, a research study on how companies that align around higher values do better in the marketplace.
“Our goal is to help customers find their purpose by connecting with their favorite causes,” added McNeel. “The larger the reach through established financial service institutions, the greater the value to customers who are looking to give every day to the charities that matter the most to them.”