Civil society support programme that we are engaged in
From the DonorSee website
“At DonorSee, we dream of a world where the global poor receive the help, dignity, and human connection they need to thrive. We believe in the power of community to make a difference. Together we can create great change.”
Donor.see business model
DonorSee is a charitable giving and fundraiser platform. Their value proposal is “give directly to people in need and get a video update showing your impact”. Their proposal to receiver organisation that they upload on their platform is to charge USD 99 per month and that they collect 16% of the first donation.
Reflection by CEO: Thereby they have guaranteed for themselves an income as soon as an institution uploads on their website, no matter if the fundraising succeeds.
HR&S Value proposition to Donor.see
We offer to add sustainability to the Donor.see programme. We offer our programme in the rural villages of Togo to start with and can add other programmes if the collaboration is successful. We can provide continuous stories from our 200 local entrepreneurs, per person and/or per community. HR&S offers business loans with 10% interest, training and coaching, and we have 100% pay-back, proving that the loans are well invested and thus impact. On ground we have a local HR&S Branch with educated staff and we collaborate closely with local programme managers from the community where the programme is implemented. This set-up is required to have sustainable impact, different from the traditional ad-hoc aid donations. We have 20 years of experience from working on-ground in Sub-Sahara African countries.The paid back capital offered to new business owners, why our capital has a long-term effect and is not consumed. The 10% interest co-funds the cost and reimbursement of the local programme manager, and thus also empower sustainable development.
We can also offer, in addition, to share evidence based impact assessments, ‘what happened after the funds were donated?’, but we do not know if it fits into the Donor.see framework. It can be noted that we portrait strength and avoid portraiting beggars.
This programme in Togo is successful and we want to scale, why a collaboration with Donor.see is attractive to us. We request an agreement between Donor.see and HR&S that the administration income that donor.see benefits from, from the donors, is shared with HR&S. In case the above seems interesting, please let us book a meeting.
HR&S accepts that maximum 15 % of the donor money ends up in tax and administration for Donor.see and HR&S together. Stripe has 3% admin fee, and thereby we remain with 12 %. As HR&S is doing the all the work on-site the proposal is that the 12 % is divided so that as 4 % is for Donor.see and 8 % is for HR&S.
The 15 % admin and tax fee has to me openly shared with the supporter, in all HR&S campaigns. Also, HR&S is not a non-profit and do not want to be presented as one, we
are a professional social enterprise, the only type of institution that
has sustainable evidence based impact.
Donor.see will send 85% of the funds raised to the HR&S branch in Africa and then 8 % to HR&S, while keeping 4%, which shall cover the Donor.see costs.
DS value proposition ONE. Targeting the monthly fee only, USD 1,200 per year requires an income of USD 30,000 per year. Assuming an average supporter donates USD 100 in a year, then 600 supporters are involved. Lets further assume that each supporter in average donates two times per year. 16% of USD 20 times 600 is approx USD 2000. The 16% is thus insignificant in relation to the monthly fee, but still a significant amount of money. Thus total 32,000 per year. The average amount requested for on the Donor.see is USD 300, thus we need approx 100 successful campaigns per year. The income for HR&S is USD 2,400 which does not match the effort of posting 100 campaigns.
DS value proposition TWO DS mentions that they have an alternative fee that is approx 14%. If we add the Stripe fee the admin costs is 17% for DS only, which is not acceptable.
HR&S is thus proposing a negotiation.
We aim for one campaign of USD 2,000, or more such campaigns if the collaboration is successful. The admins costs is shared Donor.see/Stripe/HR&S as 4/3/8 %.
Thus DS earns USD 80 per successful campaign.