Join Club

Ballston’s Changecause Connecting Brands and Charities

Startup Monday header

Editor’s Note: Sponsored by Monday Properties and written by ARLnow.com, Startup Monday is a weekly column that profiles Arlington-based startups and their founders. The Ground Floor, Monday’s office space for young companies in Rosslyn, is now open. The Metro-accessible space features a 5,000-square-foot common area that includes a kitchen, lounge area, collaborative meeting spaces, and a stage for formal presentations.

Changecause CEO Zach Liscio, left, and COO Edward RidgelyWhen Zack Liscio, the CEO and co-founder of Changecause, moved from his job at Google in July to work in Arlington full-time and help his startup get off the ground, his friends and coworkers in Silicon Valley were confused.

“Everyone assumes that San Francisco is a more fertile group for startups,” he said. “I don’t think that’s true. It’s such a dense marketplace that it’s really hard to stand out. Plus, in the D.C. area, the talent and access to capital and mentors blows that out of the water.”

Liscio, as well as co-founder and COO Edward Ridgely, knew something about Washington, D.C.-based startups before they launched Changecause; they met at perhaps D.C.’s most successful tech startup, LivingSocial. When Ridgely and Liscio met at LivingSocial, they shared with each other their passion for helping nonprofits and donating to charities.

Incorporated last November, Changecause was a side job for Liscio, Ridgely, Chief Technology Officer Michael Seid and Chief Strategy Officer Patrick Costello. They initially set out to build an app designed to be a mobile wallet, where users could pay for goods on their smartphones. After seeing the small fees from each transaction and realizing how much money, on a grand scale, that could add up to, Liscio and Ridgely adjusted course.

Changecause screenshot“There was such an emphasis on local commerce at LivingSocial,” Ridgely said. “So I started thinking what was the way I could give back.”

Eventually, they landed on the idea that would become Changecause. Users can donate small amounts — typically between $1 and $5 — to a charity of their choice, and brands looking to increase awareness of both themselves and their philanthropy will match the donation.

“Donating to charity can be as effective as advertising for a brand,” Liscio said. “The reasons why brands like Toms are so big is because of cause branding and social responsibility.”

To add to the appeal to brands, Changecause will pair brands with donors whose demographics match a particular brand’s target market; if a 27-year-old donates to charity and lists running as its interest, a brand like Nike would match that donation.

The Changecause team became “active on all the local tech listserves,” Ridgely said, seeking advice, mentors, potential partners; anything really. They applied to the Ballston Business Improvement District Launchpad program, which provides startups with occasional office space, mentorship programs and networking opportunities.

Changecause CEO Zack Liscio

Changecause is one of 10 semifinalists in the Launchpad Challenge, where startups compete for the chance to pitch Wizards and Capitals owner Ted Leonsis on their company. Once Changecause was accepted as a challenger, the four co-founders, along with principal software engineer Mark Pierotti, the company took off.

Changecause’s web platform launched in beta version last month. Commonwealth Joe, a coffee subscription service, was the first brand partner to sign up, with a charity-matching drive for the Arlington Free Clinic. Five other nonprofits have signed on and Changecause is in discussions to bring on more partners.

As for how the bootstrapped firm will begin to make money, each transaction will by “dynamically priced” to the matching company.

“We have not tried to raise outside funding yet, but we’ve built a cash-flow positive business model,” Liscio said. “A lot of companies build their company and then they try to figure out how to make a profit. That’s a dangerous business model.”

Next month, Changecause will be coordinating donations for Slice Out Hunger, an annual charity even in New York City where 37 different pizzeries donate thousands of pizzas and visitors purchase tickets, matched by the event’s sponsors, and the proceeds go to the Food Bank for New York City. The event will give Liscio and his co-founders a chance for major brand exposure, but a question still remains: why would a major brand pay money to donate to charity?

“We think every brand has one cause they naturally align with,” Liscio said. “Last year, the top companies in the country gave almost $20 billion to charity, but they aren’t doing it in a visible way. With us, the brands and the causes will get exposure they need.”

Recent Stories

Morning Notes

Alexandria Arena Nixed — “The City of Alexandria just announced that the city is ending negotiations related to the Potomac Yard Entertainment District and ‘the proposal will not move forward.’”…

Good Wednesday evening, Arlington. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier today…

Arlington is receiving nearly $300,000 in federal funds to help clean up the Chesapeake Bay. The money is part of a much larger $206 million federal grant given to the National…

Schedule your tour today to see The Grace and Reva residences in National Landing. Located in the heart of the neighborhood’s vibrant food scene on Crystal Drive, these two residential…

Award-winning drag queen Tara Hoot is bringing her Family Fun Story Time Brunch to Arlington at Freddie’s Beach Bar! Saturday April 6 at noon! Join Tara for songs, stories, puppets, bubbles and joy! It’s not just stories, it’s a SHOW that’s perfect for kids and kids at heart–fun for everyone! Plus a tasty brunch at Freddie’s! Click the link and make your reservations now! ❤️ 🫧 🌈

Submit your own Announcement here.

The Summer 2024 STEAM (Science/Technology/Engineering/Arts/Math) Fellowship application is now open! Apply by April 15 to be considered!

The STEAM Workforce Development Teacher Fellowship provides Arlington Public Schools (APS) high school, middle school, and elementary school teachers with opportunities to learn about workplace needs in STEAM-related fields and for them to use the experience to enhance student learning to match workplace expectations in a selected industry. STEAM Fellows participate in a three-week summer fellowship, receiving a $4,000 stipend upon completion.

Applicants planning to pursue a fellowship in the arts must demonstrate how they will build connections between the arts and science, technology, engineering, or mathematics.

Click the button to learn more, share, apply, and see the variety of fellowships completed in previous years.

Read More

Submit your own Announcement here.

ACFCU’s Homebuying 101: Steps to Getting Pre-Approved

Are you ready to jump into homeownership, or have you started considering it but don’t know where to start?

Financial preparation is key when thinking about purchasing your first home and the first step to getting pre-approved. Join ACFCU for

Free Right-Sizing Workshop – How to Get Rid of Your…

Cody Chance and Dick Nathan of Long & Foster are hosting a free workshop at our office on Cherry Hill Rd. (formerly Lee Highway) on the topic of “down-sizing” Thursday, March 28 from 5:30-7:30. We have created a workbook with

×

Subscribe to our mailing list