Network for Good (NFG), a provider of donor management software to nonprofits, has secured Series B funding. Financial details of the growth investment by Boathouse Capital were not disclosed in an announcement released Tuesday.
Washington, D.C.-based Network for Good will use the Series B funding to “expand product features and accelerate programs to help more small nonprofits to do more good by taking advantage of modern, easy-to-use software,” according to a press release announcing the financing.
Network for Good is a Certified B-Corporation, a certification awarded to companies that use business to solve social problems while meeting standards relate to performance, transparency, and accountability.
“Network for Good was created to democratize charitable giving – enabling anyone, anywhere to give to charity,” CEO Bill Strathmann said in a press release. “Now, our award-winning donor management technology and expert fundraising knowledge base allows charities to raise more money and do more good faster.”
According to its 2018 IRS Form 990, which runs 1,455 pages long, Network for Good generated contributions of almost $488 million to nearly 200,000 organizations, generating management and professional fundraising fees of about $6.558 million. Since its inception, Network for Good has exceeded $2.54 billion in cumulative donations for 125,000 nonprofits.
“Boathouse Capital prides itself on investing in companies led by management teams already excelling at running attractive businesses,” Partner Chong Moua said via a press release.
Wayne, Pa.-based Boathouse Capital manages $350 million and is currently investing out of a $230-million fund “focusing on mezzanine debt and equity in high-quality lower middle market companies in partnerships with management teams and privately owned family-run businesses.”
Investment size is typically $5 million to $20 million with enterprise value of $15 million to $100 million. Traditional financial parameters include revenue of at least $10 million, earnings before interest, tax, depreciation and amortization (EBITDA) margins of at least 10 percent, and low capital expenditures and highly scalable model, according to information on its website. Boathouse Capital’s industry focus includes software and data, business services, healthcare services, and IT services and consulting.
Network for Good offers integrated software solutions for donor management, email marketing, online giving pages, peer-to-peer campaigns, and one-on-one virtual coaching from trained and accredited fundraising consultants.