Mar Vista, California-based Omaze, a fundraising platform for client charities featuring gifts, prizes, and other inducements to solicit donations, has announced a reduction in force.
The personnel adjustment will impact 103 employees and commences on February 3, 2023.
It is believed that the company is responding to the economic downturn impacting charitable giving.
From the company's website...
Where Your Money Goes
Omaze is a registered commercial fundraiser for various US-registered 501(c)(3) public charities (each a “Charity Client”). When you donate and enter for the chance to win an experience with a celebrity prize (set visit, dinner date, tickets to a premiere, etc.), 60% of your donation is guaranteed to go to the identified designated grantee(s), via a grant from one of our Charity Clients. For these experiences, typically 25%, on average, is used to pay for experience costs, such as advertising and content creation costs and payment processing fees.
When you donate and enter for the chance to win an experience with a non-celebrity prize (like a car, vacation, or cash), 15% of your donation is guaranteed to go to the identified designated grantee(s), via a grant from one of our Charity Clients. Typically between 65-75%, on average, is used to pay for experience costs, such as Prize costs, advertising and content creation, and payment processing fees.
Historically, across all experience types Omaze nets approximately 20%.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?