DailyKarma is a leader in cause marketing, empowering brands to integrate giving into their shopping experiences through tools their suite of cause marketing campaigns and tools like round-ups, percentage-of-purchase donations, and loyalty rewards. With a focus on creating meaningful connections between brands and nonprofits, DailyKarma helps brands enhance their impact while building trust and loyalty with their customers.
California AB 488, a new regulation governing charitable fundraising on online platforms, posed significant challenges for DailyKarma. The legislation requires charitable fundraising platforms to register with the state and secure written consent from every nonprofit they list. It also requires these platforms to send donations within a specified time frame. This ensures transparency, accountability, and protection for both nonprofits and donors.
For DailyKarma, compliance was non-negotiable. However, the process of obtaining consent risked alienating smaller nonprofits unable to navigate complex legal agreements and jeopardizing the breadth of their platform’s nonprofit selection – a core value proposition for their merchant partners. In addition to compliance necessities, DailyKarma needed to ensure zero disruption to thousands of ongoing customer campaigns.
DailyKarma sought a solution to tackle three critical challenges:
As DailyKarma’s platform grew, it became increasingly important to provide both brands and nonprofits with real-time access to donation information. Nonprofits frequently inquired about when donations would be sent, what campaigns they originated from, and other key details.
At the same time, DailyKarma's high-touch approach for managing donations couldn’t keep pace with the platform’s rapid growth. Sending a portion of donations out via paper checks was becoming increasingly unsustainable, prompting an urgent need for a streamlined, digital solution to efficiently manage nonprofit payouts. Additionally, to comply with California's CA AB 488 legislation, nonprofits needed to provide written consent for the use of their name and likeness in campaigns. Managing this consent process manually proved inefficient and challenging for DailyKarma's growing operations.
DailyKarma turned to Change to address its need for greater transparency and operational efficiency. Change’s two-way dashboard introduced a new level of clarity, enabling both DailyKarma and nonprofits to stay updated on campaign statuses, donation timelines, and other essential details in real-time. Nonprofits gained full visibility into when funds were sent and which campaigns they originated from, fostering trust and reducing inquiries.
In addition, Change significantly streamlined the donation disbursement process. Previously, donations often took months to reach nonprofits due to manual workflows and administrative delays. With Change’s automated donation payout system, the turnaround time has been reduced to just days, ensuring funds are delivered quickly and reliably. This efficiency allowed DailyKarma to comply with specific payout timelines outlined in California AB 488, scale its operations, support thousands of brand campaigns seamlessly without skipping a beat, and increase trust with their customers.
Change also helped DailyKarma achieve full compliance with California’s AB 488 legislation by automating the process of obtaining written consent from nonprofits. Through Change, nonprofits can easily opt into active campaigns run by merchants like DailyKarma and its brand partners. This seamless integration not only ensured uninterrupted operations and expanded support for DailyKarma’s nonprofit network but also reinforced DailyKarma’s reputation as a trusted leader for cause marketing campaigns. By being proactive when it came to new legislation, DailyKarma instilled confidence in its brand partners, demonstrating a commitment to transparency and reliability. The elimination of manual bottlenecks further fostered smoother collaboration between brands and nonprofits.
By leveraging Change, DailyKarma has not only met its goals of enhancing transparency and efficiency but also strengthened its reputation as a leader in cause marketing, empowering brands to create campaigns that make a meaningful difference.
