SAN FRANCISCO, Dec. 27, 2018 /PRNewswire/ -- TechSoup, the leading nonprofit facilitator of technology solutions to non-governmental organizations (NGOs) globally, today announced that it has secured a $4-million loan from Nonprofit Finance Fund (NFF) to support expansion of its global distribution network bringing software, hardware, services, and content to civil society organizations.
For more than 30 years, TechSoup has provided the services and resources for people and nonprofits to come together to make an impact on the issues about which they care the most. In 2017, TechSoup connected over 1 million nonprofits worldwide, distributing $1.995 billion worth of donated and discounted technology, knowledge, and other critical resources.
The NFF loan will help TechSoup scale its core programs, specifically supporting late-stage research and development, product-testing, piloting, and expansion. This is the second time NFF has invested in TechSoup: In 2004, TechSoup established a line of credit with NFF to scale its then-two-year-old NGO Tech Marketplace, moving the organization from a local to a national level. Double-digit growth of customers and revenue helped TechSoup pay back those funds ahead of schedule.
"We are proud to continue to partner with TechSoup as they increase access to much needed technology across the US and global social sectors," said Norah McVeigh, Managing Director of Financing at NFF.
"We are grateful for NFF's support of the next-generation NGO Tech Marketplace and our growing Global Data and Validation Services initiatives. In an increasingly digital world powered by 'services first, cloud first' approaches and threatened by security and data privacy concerns, digital strategies are even more critical for the estimated 12 million NGOs. And TechSoup's 'Common Data Model' for global nonprofit validation will power collaboration at new levels," said TechSoup CEO Rebecca Masisak.
"Receiving this investment early in our $11.5 million growth capital campaign puts us on strong footing and will enable TechSoup and its network to generate significant social impact and to reach many more organizations with its services."
TechSoup launched its capital campaign in November, to finance five new initiatives to help NGOs, philanthropists and civil society around the world leverage technology to create, connect, activate and transform their organizations and communities. The NFF loan is part of TechSoup's strategy to raise growth capital, which also includes a Direct Public Offering (DPO).
Direct Public Offering
TechSoup's DPO is being offered on SVX.US, a new investing platform offering debt and equity investment opportunities in high impact companies, organizations and funds that can deliver positive social and environmental impact alongside financial return.
The TechSoup DPO, which includes three tiers of debt securities investments, marks the first time the Securities and Exchange Commission (SEC) has qualified a nonprofit to raise funds nationally through a Regulation A+ / Tier 2 offering. With investment minimums as low as $50, it is uniquely structured to engage with TechSoup's community, including the nonprofits they serve, the technology companies they support, and those who have supported TechSoup for 30 years.
For every $100 invested in the DPO, TechSoup estimates it will be able to distribute more than $47,000 of additional resources to the nonprofit sector.
"The DPO embodies our belief that TechSoup's stakeholders come from a range of economic backgrounds but share a common belief in the importance of a strong infrastructural backbone for civil society," said Masisak. "This is more than just an investment—it's an opportunity to invest side-by-side with TechSoup and civil society organizations everywhere to build a better world."
TechSoup provides the transformative technology solutions, the digital platforms, and the in-person experiences that enable people to work together toward a more equitable world. With 70 partner NGOs around the world, TechSoup manages the only global philanthropy program that brings together more than 100 tech companies to provide technology donations to NGOs everywhere. TechSoup's data and validation services enable companies, foundations, and governments to connect their philanthropic resources with vetted NGOs around the world. In the past 30 years, TechSoup has reached 1.06 million NGOs and facilitated distribution of technology products and grants valued at more than $11.1 billion. https://www.techsoup.org/