Our Nonprofit Model
Over the past 11 months, DFG has grown faster and larger than we could have ever imagined, thanks to the overwhelming support from our community of volunteers, industry mentors, executive team, and board of advisors.
To help us continue to scale our impact in a sustainable way, we’ve worked with a few new clients this Winter cycle to incorporate small service fees to help us finance our operational expenses and ensure client engagement. We also plan to include service fees for new projects in future cycles, with some exceptions. Our services fees are a small fraction (~2%) of the real-world costs of these projects*, and are thoroughly discussed beforehand with each client based on the project’s complexity and the nonprofit’s budget/financial situation.
As a note, most of our projects (and all projects in previous cycles) have been completely pro bono. This information has been available on our website for some time, and we’re including more details below as to how we plan to maintain a sustainable not-for-profit model and where these funds are going.
100% of these collected fees go towards covering Develop for Good’s operational expenses (which have grown as our organization has scaled), including but not limited to subscriptions for tools needed by volunteers, a CRM/Applicant Tracking System, legal services, financial and accounting services, PR services, fellowships for first-generation, low-income students, and tokens of appreciation to our active volunteers.
We are actively committed to maintaining financial transparency, and our financial statement (IRS Form 990) will be made publicly available on our website when it is filed this summer. We will also make sure to a) include links to this information on future applications, b) evaluate whether charging clients small fees results in increased client engagement/better volunteer experience, c) aim to keep fees as low as possible as we grow our fundraising efforts.
By reinvesting these fees into our program, we hope to scale up our efforts to make greater amounts of impact and accelerate the digital transformation across the nonprofit sector.
If you have any questions about our model, please don’t hesitate to email firstname.lastname@example.org!
*Our research has shown that outsourced design projects traditionally cost $12,000-$100,000, web apps $20,000-$150,000, and native mobile apps $80,000-$250,000.