Wrapp, the Swedish social gifting startup which launched in the US in May, is gearing up for a big holiday season. But it’s not just helping friends send gift cards to each other. Wrapp is now rolling out the ability for people to give donations to non-profit organizations in the name of a recipient.
So instead of sending someone a gift card to the Gap, they can send a donation in their friend’s name to the Red Cross, World Wildlife Fund, Operation Smile or Kiva. Other charities include SOS Children’s Villages, Plan and dance4life.
Users can decide how much they want to pay to donate to the non-profit group. In the case of Kiva, Wrapp will provide credit for Kiva so a recipient can choose who they want to provide a micro-loan to.
Aage Reerslev, Wrapp’s co-founder and EVP, told me the donations are a good fit for the Wrapp service because not everyone wants to give gifts. For some recipients, who either have everything they need or value social causes, a donation can be more meaningful. It’s also helpful for non-profit organizations who can leverage social connections and the Wrapp’s gifting mechanic to raise funds.
Wrapp, which raised $10.5 million Niklas Zennstrom’s Atomico and Reid Hoffman, doesn’t make money from donations. But the core part of Wrapp’s businesses seems to be doing well. Users have sent 4 million gifts in its first year and Wrapp now reaches 40 million Facebook users in the US through its users and their friend network. Reerslev believes Wrapp can increase the number of gifts sent by 10x this holiday season.