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Ballston’s Changecause Connecting Brands and Charities

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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, such as NatureServe, St. Jude’s Children’s Research Hospital and Doctors Without Borders, 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 $50 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.”

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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