Recoup, the ecommerce platform that lets buyers donate to a good cause while shopping, is launching two new drives for 2013. The six-person company, which plans to hire some new faces in the new year, will soon offer gift cards and raffle tickets that come with a charitable donation to the nonprofit of the customer's choice.
Recoup is similar to other online curated boutiques, except that co-founders Luca Pivato and Claudio Bazzichelli work to pair businesses with nonprofit organizations, so that each purchase nets a small donation to charity, on Recoup's dime.
For example, a customer decides to spend $35 on boot camp classes in Georgetown. Purchasing through Recoup saves her some money, and Recoup donates $3.50 to Georgetown Ministry Center.
Pivato sees the donation as an important part of doing business. "It’s part of our user acquisition cost. We actually end up donating more than 30% of our revenue."
"Nonprofits become our partners," Pivato adds. He says he’s currently working with about 250 different nonprofit organizations, all of which have the opportunity to create a customized profile and shop through which they can offer Recoup's discounted goods to their membership list. The nonprofits get guaranteed donations, and Recoup gets more customers.
The new gift card channel will allow customers to purchase a gift card at full price, and Recoup will make a donation to the nonprofit of the customer’s choice. Choices are likely to include companies such as Apple, Best Buy, and Amazon, among others.
The raffles, where anyone can win prizes just by signing up for Recoup's email list, will add another dimension to the mix. "It used to be 'donate.' Then 'donate and buy,'" he says. "Now it will be 'donate, buy and win.'" Pivato says that of all the people on a given nonprofit’s membership list, on average, fewer than 30% donate to the organization. "We want to engage nondonating list members."
Additionally, Recoup will capitalize on its growth in the latter half of 2012 by making some new hires in 2013.
"I’m getting a lot of requests from people who are just out of college," Pivato says. "They want to work in a socially responsible environment."