SMG's Year Zero Budget
Your contributions will go towards the bare essentials: building our website, legal and marketing fees, and travel expenses. Without your help, we wouldn't be able to get started.
SMG was informally established in March 2011, when founder Taylor Jacobson recruited a team of undergraduates to begin working to create a social and viral phenomenon out of the concept of donating "a penny a day", i.e. subscription micro-giving (SMG).
Our mission is to create the largest, most inclusive and most active philanthropic community in the world
The current industry for philanthropic giving by EDJs ("everyday Joes") is fragmented and often confusing, and underpenetrated as a result. The fundraising strategies utilized by organizations are often informed by conventional wisdom, despite the wealth of information that can enable these organizations to pursue and engage donors more successfully.
To address this gap, we are launching a website that solicits and allocates funds under the following simple scheme:
· Donors are asked to give a penny a day (or more), on a subscription basis and receive updates notifying subscribers of the impact they had, i.e. the projects they contributed towards in a given month, in the areas they care most about
· Grants are made on a near-continuous basis, allocated based on popular vote, backed up by an efficient due diligence process
Our aim will be:
· To create a unique and compelling online giving experience that is emotionally and socially rewarding
· To go beneath the threshold for financial decision-making so that donors are making only an emotional decision (and not a financial one)
· To leverage a marketing strategy that is compatible with a viral spread
· To make grants and investments in a responsible manner, to create positive social change
Business ModelTo generate revenues, we intend to initially target that segment of US-based web users which is currently using a combination of e-commerce and social networking tools, later expanding to other similar markets. This constitutes an initial addressable customer pool of 100 million people in the US, or as many as 400 million people globally. With a target donation size of USD 5 cents per day, a user base of one million subscribers would generate USD $18 million in revenues annually, supporting 10 grants of $5,000 every day or one $1,000 grant every 30 minutes.