New Facebook App Provides Additional Revenue Source For Struggling Non-profits

Online, December 26, 2010 (Newswire.com) - As the nonprofit sector continues to feel the brunt of the recession, charitable organizations worldwide are desperately seeking strategies to generate additional revenue. One new Internet start-up, Karmarang (www.Karmarang.com) offers a solution - giving supporters the ability to contribute to charities without having to open their checkbooks.

The new site allows users to sponsor a charity by sharing recommendations about books, music and other content with their friends via email and Facebook. The site combines elements of the popular Causes app on Facebook with the fun of sharing the trappings of our culture, subsequently enhancing the model of how people can share and connect with each other on social networks.

"Particularly at this time of year, we're often thinking about what we can do to help those in need," said Michael Phillips, co-founder of Karmarang. "How about logging on to Facebook to talk about a popular book or musical artist? It might sound too good to be true, but Karmarang seeks to channel just these sorts of conversations - which already happen millions of times a day - into material support for charities."

By encouraging users to share recommendations, Karmarang aims to significantly bolster funding and exposure for sponsored charities. Users can choose from more than a million registered 501(c)(3) organizations and recommend any product sold on Amazon.com. If that recommendation is subsequently purchased by someone in the user's online social circle, five percent of the purchase price is donated to the selected charity.

"We think it offers a meaningful alternative to awareness-only campaigns that simply prompt users to update their profile pictures or status update," said Phillips. "The site offers real financial support to charities selected by its users and, in the process, we're hoping to redefine how social networking can power charitable giving."

Karmarang launched recently, and the site already has a growing - and vocal - contingent of supporters. Phillips says that his group is currently negotiating arrangements with other online vendors to allow recommendations of their products through the site.

"We've seen e-fundraising playing an increasingly important role in resource development for nonprofit organizations and institutions" said Phillips. "An application that can successfully tap into the social networking groundswell could be a lifesaver for many non-profits."