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Comment by gyaniv | Hacker News Reader

To find new clients I think that by introducing yourselves and your product to those "brick and mortar non profits" you said turned people away, you should be able to convince them to send your way some of the people that they can't handle.

But I have to say that the idea you had about the money source sounds a bit strange to me. Your whole idea is helping people that don't have any money, so it just seems weird that you would then ask for or even want their money, because that somewhat defies the point of helping them save money (I'm sure that you probably take only small amounts, but still...). I think that working from outside donations and federal grants just makes more sense. Or maybe even excepting some money from some of the people you help after a while if they manage to get back on their feet.

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When we started, we never thought we'd ask our users for donations after they filed. We got the idea when our users started asking us whether they could donate to us even when we didn't ask for anything. The vast, vast majority of our operating budget is covered at the moment by foundation philanthropy and federal grants, but the hard thing about outside fundraising to stay alive is that it requires a lot of time we'd rather use to focus on making our product better and reaching more people. That's why we'd love to be sustainable if we can make it work. We found inspiration in business models of EarnIn and GoFundMe.

We also let our users know that they can donate well after their discharge when they're back on their feet.

most people filing for BK aren't really "people that don't have any money." It's a middle class problem: the truly poor have virtually no access to credit and are unlikely to have debt problems, while the well-off can save their way out of it. It's nearly always people with some income and employment who find themselves suddenly without enough to pay their debts.

Wiping out tens of thousands of dollars in debt (usually credit cards, but sometimes medical and lawsuit debt too) is a huge help.

Something as simple as a standard line at the bottom of every notice email sent to the debtor, to the effect of "We're a non-profit supported in large part by donations from satisfied users just like you. Please consider a small donation to pay it forward so we can continue to help people get a fresh start." With a link to your donation page.

One of the interesting ironies of philanthropy (of which there are many) is that people who have less money tend to be more generous philanthropically (as a % of adjusted gross income) than people who have more money. And because of the way the numbers work out, they give out a lot. If Upsolve can help a very very very large number of people get through bankruptcy, they might be able to amass a very strong "Pay it forward" revenue stream. Not sure if enough to fund the entire org, but enough to help out.

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