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  • 1.  Legacy.com New Feature for Donations

    Posted 12-22-2021 02:44 PM

    Hello,
    Has anyone else experienced the new "service" provided on Legacy.com obituaries that features a Donation Page that appears to be managed by Pledgeling Technologies Inc. dba "Pledge"?
    We have had two alumni obituaries appear in the last week that includes a Giving Page at the bottom of the site which appears to have our school's branding, but the would be donor is actually making a gift to a DAF. 



    ------------------------------
    Robert Laity
    Stewardship and Development Services Manager
    Bard College
    laity@bard.edu
    ------------------------------


  • 2.  RE: Legacy.com New Feature for Donations

    Posted 07-19-2023 08:00 AM

    Hi Robert,

    An alum just brought this to our attention. Yes, the gift goes to the Pledgeling Foundation, which is a DAF and which provides the donor with a receipt. They then forward the net amount (minus a $5 + 3% fee) to Williams. 

    It looks like there is a new "feature" that asks the donor to tip Pledge, or I think that is where the tip goes. This is really disgusting, in my eyes, especially for an alum making a memorial gift. The alum who brought it to our attention assumed we were the ones asking for the tip and wasn't happy about it.

    We are going to ask legacy.com, pledge.to, and the pledgeling foundation to remove Williams College from all giving widgets and databases. Has anybody else done that?

    Thanks,

    Victor



    ------------------------------
    ven1@williams.edu
    ------------------------------



  • 3.  RE: Legacy.com New Feature for Donations

    Posted 07-19-2023 10:31 AM
    Hi Victor,

    Sage70 researched this business model, used by Pledge and perhaps most famously by Givebutter, on behalf of a client. I can assure you that donors do not find it disgusting or objectionable. In fact, the overwhelming majority of donors tip, and the average tip is about 12% of the gift. The tip, at Pledge, is framed like this:
    image.png

    I'm not affiliated with any company that offers this service, and I don't benefit from this in any way. That's not why I'm sharing this. I completely understand the initial reaction that makes this feel wrong or disturbing to you, but it is really mostly us, nonprofit pros, who feel this way. We tend to view this as a kind of parasitic business model that monetizes our charitable cause and brand. What I learned from my work in this area is that nonprofits can take a lesson from these companies, and capture more than the 3% donor cover - maybe even 4x or 5x more, with better messaging and better offers. Many donation platforms offer this functionality, and nonprofits can get that revenue themselves. But few do. Businesses like Givebutter and Pledge provide a useful service to nonprofits, they do not charge nonprofits directly for that service, and they do not cannibalize the donation for their revenue. They bring new dollars into the transaction -- and donors respond to it in an enormously positive way. It may still be the right move to ask to delist Williams College, but I thought I'd offer a different perspective for you to consider.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 4.  RE: Legacy.com New Feature for Donations

    Posted 07-21-2023 08:38 AM

    Hi Isaac,

    Thank you for your thoughtful and detailed response. I appreciate that.

    Here are the problems I have with Plege's tip feature:

    1. Pledge is implementing the "tip" feature without our consent. If a non-profit wants to ask for a tip to bump up revenue or to ask donors to cover transaction costs then that is their decision. We don't want to ask our alums and other donors to cover transaction costs so this approach conflicts with our policy.
    2. It is unclear where this money is going and how it is being used. The text suggests it is to cover costs, but Pledge is already retaining $5 per transaction + approx 3%. I'm guessing the money is going to Pledge, on top of the transaction fees they retain from the non-profit, but a donor could naturally assume this is going to Williams, which is what the alum who noticed this assumed.
    3. A person just died and someone who cares for that person wants to honor them so they decide to send $100 but get asked for $115, come on.

    Also, as a policy, we want donors to come directly to us or via vendors with which we contract so that we can make sure acknowledgments and receipts follow our branding and policy.

    We have asked Pledge to remove Williams College from its database. I can let others know how that goes or if anybody else has done that please let me know.

    Victor



    ------------------------------
    Victor Nuovo
    Director of Advancement Operations
    Williams College
    ven1@williams.edu
    ------------------------------



  • 5.  RE: Legacy.com New Feature for Donations

    Posted 07-21-2023 02:04 PM
     Victor, 

    I appreciate a nonprofit wanting to be in control over its brand, messaging, and donation process, and I get why this rubs you the wrong way. I don't think consent is an adaptive framework for this, though - it takes us to more heated places. This type of intermediated giving is not new - DAFs and employee giving are like this, too - and it's growing rapidly. I think we'll need to grapple with it.

    Btw, the Pledge pricing model is no fee donations of $1k or less, and only the cc fee of 2.9% +$0.30 for donations over $1k. They then charge a $5 per-payout fee, and payouts are monthly. It's not a per-gift fee. The most you'll ever pay, annually, is $60. If it was $5 per gift, I would be up in arms about it too. 




    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 6.  RE: Legacy.com New Feature for Donations

    Posted 10-24-2023 03:06 PM

    Victor,

    What was this process like?  We are thinking about having Pledge turned off for our organization as well.  We have some data record issues with Pledge's model, and would much rather have people donate directly to our organization as opposed to a third party, especially since that is what the obituary requests.

    Dariel



    ------------------------------
    Dariel Dixon
    Chautauqua Institution
    ddixon@chq.org
    ------------------------------



  • 7.  RE: Legacy.com New Feature for Donations

    Posted 11-15-2023 04:10 PM

    Hi Dariel,

    Thank you for reminding me about this. I never closed the loop. We did end up having legacy.com, pledge.to, and the pledgeling foundation remove us, although it took some work. Their support was non-responsive, so I ended up finding an email address for the CEO and emailed him. 

    Victor



    ------------------------------
    Victor Nuovo
    Williams College
    ------------------------------



  • 8.  RE: Legacy.com New Feature for Donations

    Posted 07-21-2023 11:56 AM

    ***opinions are my own***

     

    One thing I'm not seeing is a conversation about what the for-profit companies gain aside from money when a donor to your organization "tips" the platform. As soon as a donor tips the platform, they have freely given money directly to the platform, and now they are the platform's customer (in addition to your org being a customer, having signed a service agreement). What does this mean for your donors? Well, I don't know. I'm not sure how comfortable I am handing over donors on a silver platter to platforms in this way. Beyond the revenue stream of tipping platforms, people's data can itself be a revenue stream for tech companies, depending on how they leverage it.

     

    Best,

    Vered

     

    CCS Fundraising

    Vered Siegel, CFRE
    Senior Director, Systems
    she/her/hers

    527 Madison Ave, 5th Floor
    New York, NY 10022
    tel: (872) 810-6691
    vsiegel@ccsfundraising.com ccsfundraising.com

    Celebrating 75 years of transformational partnerships with nonprofits

    FundSvcs Community

     

    Re: Legacy.com New Feature for Donations

    Jul 19, 2023 10:31 AM

    Isaac Shalev

    Hi Victor,

     

    Sage70 researched this business model, used by Pledge and perhaps most famously by Givebutter, on behalf of a client. I can assure you that donors do not find it disgusting or objectionable. In fact, the overwhelming majority of donors tip, and the average tip is about 12% of the gift. The tip, at Pledge, is framed like this:

    image.png

     

    I'm not affiliated with any company that offers this service, and I don't benefit from this in any way. That's not why I'm sharing this. I completely understand the initial reaction that makes this feel wrong or disturbing to you, but it is really mostly us, nonprofit pros, who feel this way. We tend to view this as a kind of parasitic business model that monetizes our charitable cause and brand. What I learned from my work in this area is that nonprofits can take a lesson from these companies, and capture more than the 3% donor cover - maybe even 4x or 5x more, with better messaging and better offers. Many donation platforms offer this functionality, and nonprofits can get that revenue themselves. But few do. Businesses like Givebutter and Pledge provide a useful service to nonprofits, they do not charge nonprofits directly for that service, and they do not cannibalize the donation for their revenue. They bring new dollars into the transaction -- and donors respond to it in an enormously positive way. It may still be the right move to ask to delist Williams College, but I thought I'd offer a different perspective for you to consider.



    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

     

    Schedule a 30-minute consultation now:

    calendly.com/sage70/30min

     

     




    Hi Robert,

    An alum just brought this to our attention. Yes, the gift goes to the Pledgeling Foundation, which is a DAF and which provides the donor with a receipt. They then forward the net amount (minus a $5 + 3% fee) to Williams. 

    It looks like there is a new "feature" that asks the donor to tip Pledge, or I think that is where the tip goes. This is really disgusting, in my eyes, especially for an alum making a memorial gift. The alum who brought it to our attention assumed we were the ones asking for the tip and wasn't happy about it.

    We are going to ask legacy.com, pledge.to, and the pledgeling foundation to remove Williams College from all giving widgets and databases. Has anybody else done that?

    Thanks,

    Victor



    ------------------------------
    ven1@williams.edu
    ------------------------------

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    Original Message:
    Sent: 7/19/2023 11:31:00 AM
    From: Isaac Shalev
    Subject: RE: Legacy.com New Feature for Donations

    Hi Victor,

    Sage70 researched this business model, used by Pledge and perhaps most famously by Givebutter, on behalf of a client. I can assure you that donors do not find it disgusting or objectionable. In fact, the overwhelming majority of donors tip, and the average tip is about 12% of the gift. The tip, at Pledge, is framed like this:
    image.png

    I'm not affiliated with any company that offers this service, and I don't benefit from this in any way. That's not why I'm sharing this. I completely understand the initial reaction that makes this feel wrong or disturbing to you, but it is really mostly us, nonprofit pros, who feel this way. We tend to view this as a kind of parasitic business model that monetizes our charitable cause and brand. What I learned from my work in this area is that nonprofits can take a lesson from these companies, and capture more than the 3% donor cover - maybe even 4x or 5x more, with better messaging and better offers. Many donation platforms offer this functionality, and nonprofits can get that revenue themselves. But few do. Businesses like Givebutter and Pledge provide a useful service to nonprofits, they do not charge nonprofits directly for that service, and they do not cannibalize the donation for their revenue. They bring new dollars into the transaction -- and donors respond to it in an enormously positive way. It may still be the right move to ask to delist Williams College, but I thought I'd offer a different perspective for you to consider.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message:
    Sent: 7/19/2023 9:00:00 AM
    From:
    Subject: RE: Legacy.com New Feature for Donations

    Hi Robert,

    An alum just brought this to our attention. Yes, the gift goes to the Pledgeling Foundation, which is a DAF and which provides the donor with a receipt. They then forward the net amount (minus a $5 + 3% fee) to Williams. 

    It looks like there is a new "feature" that asks the donor to tip Pledge, or I think that is where the tip goes. This is really disgusting, in my eyes, especially for an alum making a memorial gift. The alum who brought it to our attention assumed we were the ones asking for the tip and wasn't happy about it.

    We are going to ask legacy.com, pledge.to, and the pledgeling foundation to remove Williams College from all giving widgets and databases. Has anybody else done that?

    Thanks,

    Victor



    ------------------------------
    ven1@williams.edu
    ------------------------------