Swedish startup brings donations directly to checkout

Charity Funnel makes it easy to give to charity while you shop.

Evelina Galli

3 minutes

Can donations be optimized through effective communication and even strengthen the relationship between customer and company? During his studies at KTH, Philip Börjesson, founder and CEO of Charity Funnel, realized that charitable organizations were grappling with significant challenges in managing and effectively following up on donations they received. According to Philip, this was a case of wasted potential.

"Most companies today have some form of information about their ethics and values, often a sustainability page. I find it fascinating how generic these are. At the same time, 3 out of 4 consumers in Generation Z say they have chosen to buy from a company precisely because of its values. As a retailer, you have a golden opportunity to strengthen your competitive edge by daring to stand for something.”

The solution was to utilize consumers' altruism by presenting them with the opportunity to donate to a selected organization at the time of purchase. By meeting modern consumers' demand for transparent and meaningful purchases, Charity Funnel enables them to contribute to charity projects with a simple click.

The results were immediate. Just one month after Charity Funnel was introduced in its first ecommerce platform, it received thousands of donations from approximately 30 countries.

Attractive customer segment

But it doesn't end with the donation. Charity Funnel has gone a step further by ensuring that every consumer knows exactly how their contribution makes a difference. In dialogues with retailers, it emerged that several companies did not have time to nurture a personalized dialogue with their consumers. This led to the idea of offering segmented communication to donating customers, a customer group that proved to be beneficial to keep in touch with for several reasons. 

Philip Börjesson explains how they simultaneously realized they had stumbled upon an unexpected value: Donating customers proved to be a particularly attractive segment for e-retailers. "We can see that donating customers have a higher order value, lower return rate, and are more loyal than other consumers. Therefore, keeping in touch with this group is beneficial not only from an altruistic perspective but also in terms of profitability."

Now, Charity Funnel is a proud part of Centra's ecosystem, making the service available to a wide range of brands, including well-known names like Dedicated and Holdit. "Having access to Centra's extensive network of brands has been invaluable. It's the perfect breeding ground for a startup and a fantastic platform for scaling up our vision.” says Philip Börjesson."

About Charity Funnel

Charity Funnel provides an API that enables charity collaborations within e-commerce. By transparently communicating to customers about the difference each donation makes, we cultivate a more loyal and returning customer base.

About Centra

Centra is an advanced commerce platform for D2C and wholesale operations, currently a market leader in enabling fashion and lifestyle brands to distribute their products both in their own stores and through retailers. Founded in Stockholm in 2016, the company is now the largest player in the fashion and lifestyle category in the Nordic region. Centra employs staff in Sweden, Poland, the United Kingdom, and the USA, helping over 300 brands optimize their sales. Brands such as Nudie Jeans, Stronger, and Björn Borg have been using the platform to reach their online customers.

Evelina Galli, Consumer Expert
+46 (0)76-607 38 27


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