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Exclusive: Philanthropy-focused fintech Overflow raises $20M

Illustration of hands tying a bow on a gift

Illustration: Aïda Amer/Axios

Overflow, a startup enabling charitable and faith-based organizations to accept stock, and crypto donations, raised $20 million in Series B funding, the company tells Axios exclusively.

Why it matters: Charitable organizations lack efficient tools for accepting non-cash donations.

How it works: Overflow supports charitable donations through cash, debit, credit and ACH collections, as well as seamless stock and crypto giving.

  • It connects to a variety of mobile payment systems and digital wallets, including Apple Pay, Venmo, CashApp, Google Pay, and PayPal.
  • The platform also allows giving through donor-advised funds already earmarked for charitable deployment.

Context: Founder Vance Roush has served 10 years as a pastor at Vive Church in Silicon Valley, where he sees the challenge faith-based organizations have accepting non-cash donations like public company stock.

  • "People wanted to give... And they said, 'I can give so much more, Vance, if you allow me to give my Facebook, Google, or Apple stock," Roush says.
  • The average online donation through ACH, debit or credit is $128, while the average stock donation made through Overflow is 100 times larger, at nearly $13,000.

Between the lines: Donating stock has certain tax advantages, since it avoids capital gains taxes and also can be deducted at fair-market value upon appreciation.

  • Meanwhile, churches and qualified charitable organizations pay no capital gains tax when they liquidate the stock.

State of play: Overflow today manages the payment processing and donation flow for more than 450 nonprofits, churches and charitable organizations.

  • And when Overflow has the ability to see an organization's giving and spending, Roush says the company could use that data to underwrite lending.

By the numbers: The company has raised a total of $33.5 million since being founded in 2020.

  • The Series B round was led by the Wesleyan Investment Foundation, which typically funds churches and non-profits.
  • Existing investors Uncork, R7 and TheGP also participated.

Editor's note: This story has been corrected to reflect a company update that they have raised $33.5 million to date, and that Vance Roush has been a pastor for 10 years.

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