Photo: Annie Spratt (Unsplash)

Exponential, Inc. (XPO²), a crowdfunding and impact investing platform, is changing the landscape by standing firm in doing how it believes fundraising should be done—ensuring that the projects it supports yield concrete impacts on the community and environment.

Instead of giving attention to established and giant charity networks and nongovernment organizations, XPO² focuses on small and medium-sized NGOs that are, more often than not, overlooked. The philosophy behind this drive can be owed to the fact that renowned NGOs today usually have missed their spending targets. Also, historical reports have shown and proven that these funds are mostly funneled into waste—call centers, executive fees, office lease and so on.

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As such, XPO² lives by the belief that impact investing is not hinged on the brand name of an NGO but is highly dependent on the capability and passion of the group to do good.

“We only assist smaller organizations that we personally vet. We pride ourselves in being a ‘low volume, high-quality platform,’” said Dom Einhorn, founder, and CEO of the cause-related marketing firm XPO².

A wide range of NGOs

The XPO² crowdfunding platform hosts a diverse group of carefully vetted NGOs across the globe. Among these are the Morani Preserve and Research Center Laikipia, Duong Luo Hospice, CARA Project Girls Rescue Centre, Ngong Forest Conservation Trust, Save Vietnam’s Wildlife, Blue Water Ventures International, Bully Rehab Awareness Gym in Arizona, United Premier Soccer League, Orphanage Truyen Tin and Big Cat Rescue.

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Remaining NGO partners include Access TLC Foundation, Proyecto Daniel, Lifting Hands, Wildlife Waystation, Tumutumu School for the Deaf, Blue Mountain Humane Society, Affiniti, the World’s Greatest Animal Project, the Cho Group Foundation, Saigon Children and the Lisa May Foundation, and LA Wolves FC.

These organizations touch on animal rights and animal life preservation, environment protection, youth development and cultural preservation, among others. They went through XPO²’s thorough evaluation via on-site visits, which proves that these organizations are doing real work to make a change.

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So what’s in it for these projects and groups once they partner with XPO²?

A slew of fundraising technologies and easy and safe monthly cashless contributions are just some of the benefits of partnering with the XPO² platform.

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Aside from the revolutionary impact XPO² is looking to bring through the projects and groups it backs, the package XPO² offers to NGOs includes access to a complete marketing program valid for a lifetime. These marketing efforts are boosted by the firm’s so-called ambassador program, which encourages those who have a large following network in social media to tell of XPO²’s commitments.

But that’s not yet the catch. All these can be taken advantage of without a single penny paid.

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So how does the money flow to these NGOs? Where are they sourced? Aside from the dollar or cashless contributions, XPO² partners with merchants who are the leaders of the e-commerce industry. Its list includes Target, Kohl’s, Walgreen’s, HSN, JCPenney, among others.

XPO² ensures that the connection between merchant partners and contributors or shoppers is strengthened by selecting sellers that offer the most enticing value promotions and rewards. This feature, the top criterion for the firm’s merchant partners, is seen to generate more buyers and more profit. And then, a percentage of the transaction made in XPO² goes to the advocacy organizations the firm promotes.

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This setup, one that benefits all parties, makes for a disruptive innovation in fundraising mechanisms with the conclusion to a transaction resulting in reduced costs and buoyed aid for social impact.

And finally, for the NGOs, their cash flow is beefed up with the stake they have in each transaction made.

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Bringing together e-commerce and crowdfunding

The potential to raise large funds through the XPO² crowdfunding platform is huge. The company is targeting to capture at least one percent of all global retail e-commerce transactions by 2020. To achieve this, the company is perfecting its strategy in marketing, fundraising, and e-commerce, which can raise $120 billion annually.

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Moreover, the inception of XPO²’s solution, to function on behalf of worthy, small and medium-sized NGOs in need of vital funding to survive, comes at an opportune time in the corporate world when firms are striving to effectuate an impact in the society to gain a foothold in the community in the long term.

The idea of CSR emerged as societies have come to realize the need to respectively support and protect the community and environment. As such these elements are found to be inevitably taken into account when plotting profit-generating activities to conduct.

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XPO²’s Einhorn recognizes this, noting that such activities among corporations also benefit them as CSR-related activities help embed a positive branding in the psyche of customers and those being eyed to be part of the consumer base.

“The improved brand recognition goes a long way—it can boost the company’s sales and loyal customer base,” Einhorn said.

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For its part, the role XPO² aims to play in creating the maximum net social impact makes the crowdfunding and impact investing platform a much-needed tool not just in the e-commerce industry but in the business world as well. This impact investing mechanism is made possible thanks to XPO²’s sustainable fundraising technique.

Hopefully, several firms will follow through XPO²’s strategy in linking the needed players toward making a sustainable impact.