Two 21-year-old college dropouts have drawn $2 million to construct Givefront, a vertical fintech platform built for the nonprofit sector. Founded by Harvard’s Matt Tengtrakool and UC Berkeley’s Aidan Sunbury, the Y Combinator-backed startup is going after a gap that doesn’t get enough love in terms of spend platforms: modern, compliant financial operating systems for nonprofits, religious organizations (churches), charities, NGOs, animal rescues, food banks and homeowner associations.
A Money Stack Designed for Nonprofits’ Unique Needs
Givefront is introducing corporate cards, spend controls, bill pay and automated reporting built around nonprofit realities — restricted vs. unrestricted funds, grant-by-grant budgeting, volunteer reimbursements and an audit trail that works well with IRS Form 990 disclosures. Rather than replacing its customers’ core accounting, the platform connects with what nonprofits are already using – Blackbaud, Sage and MIP among others – and adds layers of real-time approvals, receipt capture and granular grant tagging.
- A Money Stack Designed for Nonprofits’ Unique Needs
- Why This Moment Is Ripe for Nonprofit Spend Tech
- From Broad Vision to Cards and Spend Management
- Traction, Revenue Model and Early Beachheads
- A Crowded but Underserved Landscape for Nonprofits
- Who Backed the Round and Who Is Building
- What to Watch Next as Givefront Scales Its Platform
The approach is similar to what Brex, Ramp and Mercury did for startups and enterprises with their own software, but applies to some of the workflows that are nonprofit-specific. Verticalization matters here; the controls that make sense for a venture-backed startup don’t map neatly to an organization juggling dozens of restricted grants with idiosyncratic reporting rules and compliance milestones.
Why This Moment Is Ripe for Nonprofit Spend Tech
Nonprofits make up roughly 6% of American GDP according to government estimates of the sector’s economic footprint, and the IRS lists some 1.8–1.9 million registered organizations. Giving USA estimates that Americans contribute over $500 billion per year. But finance teams in this industry tend to be small, or led by volunteers, and they patch together legacy tools and spreadsheets to try to meet board oversight, donor demands, federal Uniform Guidance requirements for federally funded grants, and annual audits.
That drag has real impacts on operations: slow reconciliations, opaque spend, and painful documentation at grant closeout time. A system that links every transaction to a grant code, captures a receipt on tap and spits out audit-ready reports can compress weeks of manual effort into minutes — without requiring overstretched teams to rip out their accounting software.
From Broad Vision to Cards and Spend Management
Givefront had a grand vision of tackling the banking and accounting space when it joined Y Combinator. Early discussions with customers taught a hard lesson: persuading a nonprofit to change out its bank or general ledger meant months of due diligence, approvals from the board and your audit firm. By contrast, exchanging the card and layering spend controls is in a faster lane where time-to-procurement is cut and value such as fraud reduction and reporting clarity gets exposed sooner. That realization drove the company to instead focus initially on cards, spend management and bill pay.
The founders’ journey to this wedge was informed by the founders’ own experiences. Tengtrakool had previously built lending tools in Nigeria and held operational positions within nonprofits as he studied computer science and statistics. But after assisting one organization to scale up donations close to $500,000, he realized it wasn’t a lack of fundraising software that was holding everyone back — it was post-donation financial plumbing that could survive an audit and donor scrutiny.
Traction, Revenue Model and Early Beachheads
Givefront says it has onboarded hundreds of organizations and is growing revenue and total payment volume more than 200% month over month since launching its cards six months ago. By year’s end, the company hopes to work with about 1,000 nonprofits, and 5,000 by mid-next year. The revenue today is coming from interchange on card spend and subscriptions for bill pay; adjacent lines like payroll, banking, budgeting tools, and even endowment or investment flows are on the product roadmap.
Churches and religious organizations have been early adopters, with many relying on volunteer treasurers and part-time staff to manage their finances. Automated approvals, merchant and category limits that can be set for ministries or programs, and donor-facing reports all remove friction in places where time and expertise are in short supply.
A Crowded but Underserved Landscape for Nonprofits
The old-school nonprofit systems remain dominant, but they were designed in pre–real-time days. They provide rock-solid accounting but don’t have smart controls, mobile-first receipt capture, or grant-level restrictions at the point of swipe. Generalist spending platforms are good at business use cases and bad at compliance with restricted funds or showing you funder-by-funder reports. Givefront’s wager is that a vertical layer, built onto existing ledgers and fine-tuned for nonprofit governance, will deliver on those virtues ahead of any horizontal tool set.
Who Backed the Round and Who Is Building
The $2 million round was led by Script Capital, with contributions from Y Combinator, C3 Ventures, Phoenix Fund and angels who included the CEOs of Chariot and Wealthfront. The founding team is by turns relatively young — a 17-year-old among the company’s first engineers is not its youngest employee — a highly valuable trait in terms of product velocity and a credibility obstacle when selling financial infrastructure to boards, auditors and accounting departments. Investors are betting that domain-specific software, not age, will dictate the rate at which employees adopt and keep using a given workplace tool.
What to Watch Next as Givefront Scales Its Platform
“The devil will be in the detail,” Nomura’s currency strategy team wrote in a note, adding that “implementation now depends on how deep the integrations become,” just as much as whether they offer policy precision and compliance breadth. Look for Givefront to go deeper into automated grant closeout packages; audit-ready document trails; and tighter, more seamless relationships with systems like Blackbaud and Sage. If it can maintain its reported growth and crack multi-entity nonprofits with complex grant portfolios, then it could become the default spend layer for an industry that moves billions but runs on old rails.
