Earning A Profit From Nonprofits
Keeping nonprofit organizations in touch with supporters is a personal mission and profitable business for entrepreneur-activists Chris Hanson and Mark Paquette.
Their Minneapolis software company, thedatabank, makes customized, Web-based relationship-management software. More than 800 nonprofit groups in Minnesota and around the country use it to communicate with donors and spur members to action.
Today, clients use the company’s “technology for change” on behalf of causes related to the environment, education, immigrant and refugee rights and, in this election year, getting out the vote.
“Basically, we’re saving the world through data management practices,” Paquette said. “We have a lot of clients that rely on us to keep their fund-raising and volunteer opportunities going smoothly.”
Hanson and Paquette launched thedatabank 10 years ago. The dot-com boom was in full swing, but some questioned whether a for-profit company could stay in business working with nonprofits.
They proved that it could. Revenue has risen 15 to 20 percent a year, Hanson said, and is expected to reach $1 million this year for the first time. Despite the sputtering economy, the first half of 2008 has been the firm’s best for adding clients.
Plenty of demand.
“If there is an industry that’s recession-proof, I think fundraising is one of them,” Hanson said.
Photo by Elizabeth Flores.
cassy on July 16th, 2008 11:54 pm
I really admire this people who can make a business stand again after its failure.
Leave a Reply