The goal of Gigit was always to be more than just a software provider. The company was founded with the desire to have a positive social impact, not just provide great software tools. That’s why we concentrated on the non-profit sector, and it’s why we built a platform that non-profit organizations can use for both operational management and as a social platform to advance awareness of their cause, interact with engaged community members, and recruit volunteers and supporters.
Gigit’s mission has always been to help build better communities. You may have heard the saying “put your money where your mouth is.” It acknowledges an unpleasant truth: people often say one thing, but then do another. Their words are not backed by their actions. But the Gigit Giveback ensures our actions match up with our philosophy. The result not only gives back to the charities we work with, but also radically transforms the software pricing model. Today, we can say with confidence that our pricing model is the best possible one for non-profit organizations. And, for registered charities, it can actually be less than free.
The principle behind the Gigit Giveback is simple. Charitable organizations receive 5% of the total Gigit profit generated by their organization’s transactions at the end of each year. This money is not a refund. Rather, the funds are donated directly to each registered charity by Gigit. This means the funds can be treated exactly as any other donation, rather than as income or reduction in expenses. We call this the Gigit Giveback.
Gigit is entirely free to use, for organizations of any kind. We can provide a comprehensive platform for free because we use a transaction-based pricing model. Obviously, if an organization is simply using Gigit to find and manage volunteers, where there is no monetary transaction, there are zero transaction fees applied (and therefore zero revenue to Gigit).
Donation transactions are only charged the processing fee – no Gigit fee. So, 100% of donations are received by the organization. Gigit only generates revenue on donations if the donor chooses to add a tip.
Other transaction types carry different fees, each of which is a combination of the processing fee and a small Gigit fee. In every case, Gigit’s fees are lower than every one of our competitors.
Gigit remains free for organizations because these fees are passed through to the individual donors, purchasers, bidders, etc. transparently at the time their payment is processed, and not to the organizations themselves. This is a typical model for the non-profit sector and most donors and purchasers are willing to pay the transaction fees because they’re minimal and because they understand that they don’t want to pass that cost on to the non-profit organization. However, Gigit gives organizations the option to pay these transaction fees themselves should they wish to do so.
The Gigit Giveback is a meaningful advantage of our transaction-based pricing model - but it’s hardly the only benefit. One of the big advantages for organizations is that, in a transaction-based model, the cost is based solely on the number of transactions. For example, there is no flat fee or monthly subscription to collect donations. The fees charged are directly correlated with the number and size of transactions an organization transacts.
One of the disadvantages of flat fee and subscription models is that organizations may take in less money in a given time period than they actually pay out in usage fees or subscriptions. In other words, an organization loses money. This can never happen under a transaction-based pricing model.
Gigit’s transaction-based pricing model means it’s automatically scalable for organizations. Using Gigit, a non-profit never again has to worry if they’ve collected enough funds in a given month to pay the costs of the various donor management or peer-to-peer fundraising software, for example. Organizations can grow without limits or extra costs.
This transaction-based pricing model is the only revenue model Gigit uses, and it’s applied across all of the verticals we offer. This allows us to give organizations a ticketing solution that costs less, an auction platform that’s less expensive than others, online stores at an effectively much lower price than our competitors, a donation platform that takes none of the donations, and so on. The advantage to organizations in just one area is tremendous. Add them all together, and the benefits become incomparable for our competitors.
Here’s a quick example of how the Gigit Giveback works: A registered charity called XYZ Charities starts to use the Gigit platform. They use it to run various fundraising events including online auctions, a big-ticket virtual gala, peer-to-peer fundraisers, an online store, they have a number of community members and local groups who do some fundraising on behalf of their organization, and they activate their online donate button. In the first year, the organization’s transactions through the Gigit platform total $1 Million.
From that $1 Million conducted through the platform, Gigit makes about $50,000 in transaction fees. Remember, those transaction fees are not part of that $1 Million figure. They’ve either been paid directly by the organization or passed onto supporters. Gigit then donates 5% of that profit back to the registered charity that generated it.
Typically, an organization would pay fees or upfront costs for donation software, volunteer management tools, online auction and store platforms, peer-2-peer platforms, and so on. These costs can quickly add up. As mentioned previously, an organization may even find itself in a situation where the tickets sold, donations collected, etc., do not cover the cost of the software used to manage them!
Gigit simply doesn’t work that way. The platform is always free to use and only charges transaction fees – that are lower than every competitive platform. By using Gigit, and thanks to the Gigit Giveback, charities have now turned expenses into an additional fundraising stream. The more transactions conducted through Gigit, the greater the annual donation will be.
“The transactional model works because it means we can keep the platform free, but also offer flexible options for non-profit organizations,” says Chris McIntosh, President and Founder of Gigit. “When we started Gigit, we knew we wanted to be more than just software. We want to make a real difference in the communities our users serve. Giving back is one way we can do that.”
If your organization is a registered charity, get your Gigit Giveback by getting started on Gigit today!