Got yer Goat

We would be amiss not to write about Karmagoat, at startup, for-profit for-good company founded last year by UCLA b-school grads. They began as a sort of 'Craigslist for charity,' where individuals could list unused or unwanted stuff and sell it to benefit their cause of choice. Deals are coordinated through the website, and the vetting process is aided by full Facebook integration (you can shop from your friends' collections, see who you have in common with the seller, and sellers/buyers exchange a 'payment token' in person to complete the deal).

But the platform doesn't just apply to 'stuff': an individual could also sell their skills or services for charity: for example, a tennis lesson or a home-cooked meal. For nonprofits looking to engage their supporters and raise donations in every way possible, this is a brilliant solution: to monetize volunteer talents and interests that aren't otherwise applicable to the organization's work. Suddenly, that pro tennis player who wants to help but hates asking for donations becomes a fundraiser in their own right, and leverages their expertise within their comfort zone.

The KarmaGoat founders are charismatic, high-energy guys who would Skype with me at a moment's notice as they worked 'round the clock to get their company off the ground. They take 15% of the proceeds to cover their overhead, and 85% is directed to the partner charity (there are about 40; you can suggest new ones too). Because the model is highly dependent on geographical location (no shipping yet), they launched first in the UCLA community and are working on the greater LA area next. They hope to spread to other cities soon, likely through university networks (given the focus on reselling and Facebook integration, their model is very student-friendly).

Karmagoat was written up in the LA Times and the HuffPost a few months ago and most recently were listed as one of PC Mag's top 100 websites. They found success in their first year, but not as much as they'd hoped and, as any good entrepreneur would do, have re-assessed and re-vamped their approach. They will launch the new model this spring, but I don't think I'm allowed to talk about it yet. Consider this part 1 of a two (or three) part series. Go, Goats!