Flourish Change, an Austin-based digital fundraising startup, has acquired Chicago-based competitor RoundUp App.
Financial terms of the deal were not disclosed.
Flourish and RoundUp are players in the "electronic round up" category, which lets users download an app and round off purchases made using credit cards, debit cards and bank accounts.
Flourish and RoundUp both focus on the nonprofit sector. Flourish said it will transition to the RoundUp platform, and RoundUp will become a key offering of Flourish’s suite of fundraising offerings to nonprofits.
"Bringing together the features, clients, and innovation of RoundUpApp and Flourish results in a very compelling value proposition for nonprofits," said Braden Fineberg, Flourish CEO. "We are super bullish about bringing best-practices and new services to both organizations and donors."
With RoundUp, users download the app and choose an organization from a list of nonprofits. (If a nonprofit isn’t on the list it can ask to be added.) Users then link their bank account, debit card or credit card to the app and set up a donation program.
The RoundUp app tallies the total change of the user’s transactions at the end of the month and sends a direct deposit directly to the selected nonprofit. Users can cap the maximum they’ll donate in a given month. RoundUp takes a percentage of the donation, with pricing decreasing as the donor count increases.
The two companies’ donation rosters include established nonprofits such as the Houston Food Bank, Habitat for Humanity programs in multiple markets, numerous regional animal shelters as well as small, local charities.
Flourish said the two companies distributed funds in 2019 to more than 500 nonprofits in 50 states and processed donations from thousands of individuals. The average participating donor contributes $15.75 a month by rounding up, Flourish said.
Flourish, founded in 2018, has received an undisclosed amount of seed funding from investors including Rough Draft Ventures and Dorm Room Fund.