EVANSTON, IL—(November 13, 2001)—Paradoxically, the Great Depression of the ’30s is remembered as an era of altruism and sharing. Today, with a flagging economy and weak consumer spending, there is evidence of a new generosity-in-hard-times mood, as witnessed at iGive.com, an online charity mall that connects shoppers with merchants and donates a percentage of each purchase to the shopper’s charity of choice.
As the grandaddy of the e-charity shopping mall and one of the few dot-coms who has not only survived the crash, but is turning a profit, iGive.com has, since its founding in 1997, helped members raise nearly $1 million for 16,000 charities. The iGive.com shopping mall includes almost all of the big-name online retailers -- Amazon, Barnes & Noble, CDNow, Chadwick's, Dell, Lands' End, PETsMART and Office Depot, just to name a few -- and now numbers more than 260 merchants.
Website traffic and spending is at an all-time high, according to Robert Grosshandler, founder and CEO of iGive.com. “People who may not feel financially comfortable writing a check directly to their favorite cause seem very comfortable with the idea of shopping through iGive,” Grosshandler said. “They may be more budget-conscious these days, but they still make purchases, and they want those dollars to count toward their charity.”
Why has iGive.com survived while others have folded up their tents? Grosshandler attributes his company’s success to its unwavering focus on the individual customer. “Our entire website is designed around the motivated individual who wants to help his or her favorite cause,” Grosshandler explained. “We keep it very simple. A person registers at iGive at no cost, chooses any nonprofit organization – the local food pantry, a house of worship, a no-kill animal shelter, a national medical research foundation – and then, just by buying things she needs from iGive merchants, begins racking up dollars for her particular cause. Every month we list the check numbers and amounts as we mail them out, and our shopper feels great because she can see for herself exactly how much she and her friends helped her favorite charity. She can even call her charity to double check and make sure the charity received those funds.”
The Shopper, the Merchant, and the Good Cause: All Winners at iGive.com
iGive.com’s successful formula includes building customer loyalty toward merchants who make possible donations of up to 26% of each purchase toward the customer’s cause of choice. Merchants reinforce this loyalty by offering further incentives to iGive.com shoppers, such as free shipping, 10-20% price reductions, two-for-one deals, coupons, and other specials.
Eddie Bauer, who offered extra promotions to iGive shoppers during August to stimulate back-to-school sales, explained why iGive.com benefits the merchant as much as the customer. “Our customers really appreciate being able to help out their cause when they buy from Eddie Bauer,” said Adam Cramer, Online Marketing Specialist of Eddie Bauer. “By directing a special group of community-minded shoppers our way, iGive.com offers our company the opportunity to ‘give back’ to the community-at-large through our donations on each purchase.”
iGive.com members are equally enthusiastic about the website’s crossroads, where commerce meets altruism. Cynthia Bausola joined iGive.com in August to support her favorite cause. “I’m an experienced online shopper,” Bausola said, “and when I discovered iGive.com, it was a eureka moment, because I’m also involved with a cause very dear to my heart, Stray Rescue of St. Louis. They rescue stray dogs from the city streets, many of whom have been severely abused and malnourished. Stray Rescue provides medical and foster care while the dogs are recuperating, with the end goal of adopting them into loving homes. I plan to do all my shopping through iGive.com now, especially for the holidays, so my organization will be able to help more stray dogs.”
iGive.com’s business has succeeded, in part, because of the backing of investors like VantagePoint Venture Partners, divine, inc. and the support of iGive’s bank, Cole Taylor in Chicago, all of whom from the beginning have shared founder Grosshandler’s dream of uniting the consumer, merchant and worthy cause in a way that benefits everyone. “We’re profitable, growing, and sending more money to more causes than ever before. It feels great,” said Grosshandler.
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About iGive.com
iGive.com was the Internet’s first venture for turning online shopping into a vehicle for charitable giving. The site enables users to support their favorite cause while shopping at 260 online merchants. Since its debut in 1997, iGive.com has raised nearly $1 million for 16,000 worthy causes. iGive.com is a privately held company based in Evanston, IL. For more information, visit iGive.com.
