Omaze: Difference between revisions
Reverted 1 edit by 97.151.65.154 (talk): Os |
Corrected the information to accurately reflect the state of the business today Tags: Reverted COI template removed references removed Mobile edit Mobile web edit |
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{{Short description|For-profit fundraiser}} |
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| logo = <!-- Insert Omaze logo image link here --> |
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|{{Advert|date=March 2021}} |
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| caption = <!-- Optional: Caption for the logo image --> |
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{{primary sources|date=April 2021}} |
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| foundation = 2012 |
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| defunct = [Insert year of closure] |
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| location = [Insert location] |
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| area_served = Worldwide |
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| key_people = [Insert names of key executives] |
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| industry = Charitable fundraising |
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| products = [List of notable products/services] |
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| revenue = [Insert revenue figure, if available] |
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| website = [https://www.omaze.com/ Omaze Official Website] |
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}} |
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| logo = Omaze logo.svg |
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| formation = {{start date|2012|9}} |
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| headquarters = [[Culver City, California]], U.S. |
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| key_people = {{ubl|Matthew Pohlson ([[Chief executive officer|CEO]])|Ryan Cummins ([[Vice Chairman]])}} |
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| website = {{URL|omaze.com}} |
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}} |
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'''Omaze''' is an American [[for-profit]] fundraising company which partners with charities in fundraising events. Omaze's events feature prizes, such as material goods, property, or celebrity experiences, usually with one grand prize and several lesser prizes. In order to enter the draw for the prizes, financial contributions are encouraged, with 15% to 60%<ref name="comabout"/> of the money going to the partner charity.<ref name="sifted">{{cite news |title=Celebrity-backed charity platform launches in the UK — with a £1m house giveaway |url=https://sifted.eu/articles/omaze-uk/ |access-date=29 January 2021 |work=Sifted |date=12 May 2020}}</ref><ref>{{Cite news|last=Pohlson|first=Matt|date=2020-09-09|title=Purpose At Work: How Omaze Reinvented Philanthropy To Unlock Exponential Growth And Impact|work=Forbes|url=https://www.forbes.com/sites/simonmainwaring/2020/09/09/purpose-at-work-how-omaze-reinvented-philanthropy-to-unlock-exponential-growth-and-impact/#4850d450ce80|access-date=2020-09-09|issn=2609-1445}}</ref> |
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'''Omaze''' was an online fundraising platform founded in 2012 by [[Ryan Cummins]] and [[Matt Pohlson]]. It gained recognition for its unique approach to charitable fundraising through celebrity experiences and once-in-a-lifetime opportunities. |
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The company was founded by Ryan Cummins and Matthew Pohlson in July 2012,<ref name="techcomj811">{{Cite news | title = Win Once-in-a-Lifetime Experiences that Raise Money for Charity at Omaze | author = Jansen, Monika | work = Tech.Co | date = August 22, 2011 | access-date = September 6, 2015 |url=http://tech.co/once-in-a-lifetime-experiences-charity-omaze-2011-08 }}</ref><ref name="bbw213">{{Cite news | title = Celebrity Charity Auctions: Six Winners' Stories | last = Milzoff | first = Rebecca | work = Bloomberg BusinessWeek | date = February 14, 2013 | access-date = September 6, 2015 |url=https://www.bloomberg.com/bw/articles/2013-02-14/celebrity-charity-auctions-six-winners-stories }}</ref><ref name="bi712">{{Cite news | title = Omaze Raises $1 Million So Regular People Can Experience Once-In-A-Lifetime Opportunities For $5 | author = Shontell, Alyson | work = Business Insider | date = July 23, 2012 | access-date = September 6, 2015 |url=http://www.businessinsider.com/omaze-raises-1-million-so-regular-people-can-experience-once-in-a-lifetime-opportunities-for-5-2012-7 }}</ref> is privately owned, and is based in [[Los Angeles, California]]. The company has raised over $130 million<ref name=":0">{{Cite news|last=BERNSTEIN|first=JILL|date=2020-03-10|title=Meet the for-profit business model that's raised over $130 million for charities|work=Fast Company|url=https://www.fastcompany.com/90457667/omaze-most-innovative-companies-2020|access-date=2020-03-10|issn=1085-9241}}</ref> for over 350 charities,<ref name=":0"/> including [[UNICEF]],<ref>{{Cite news|url=https://www.theguardian.com/voluntary-sector-network/2015/dec/16/organisation-helping-star-wars-become-force-for-change|title=How my organisation is helping Star Wars become a force for change|last=Cummins|first=Ryan|date=2015-12-16|work=The Guardian|access-date=2017-08-23|issn=0261-3077}}</ref> [[After-School All-Stars]],<ref>{{Cite news|url=http://www.tubefilter.com/2015/05/15/arnold-schwarzenegger-omaze-after-school-all-stars-blow-sht-up/|title=Arnold Schwarzenegger Wants You To Blow Sh*t Up For Charity|date=2015-05-15|work=Tubefilter|access-date=2017-08-23}}</ref> [[Julia's House]],<ref>{{Cite news|url=https://www.bbc.com/news/uk-england-wiltshire-32203837|title=Robert Downey Jr raffle raises £1m for Julia's House hospice|date=2015-04-07|work=BBC News|access-date=2017-08-23}}</ref> [[Product Red]],<ref>{{Cite magazine|url=https://www.rollingstone.com/music/news/watch-u2-offer-private-concert-make-song-puns-for-charity-w459031|title=U2 Offer Private Concert, Make Song Title Puns for Charity|magazine=Rolling Stone|access-date=2017-08-23}}</ref> and [[Make-A-Wish Foundation]].<ref>{{Cite web|url=http://comicbook.com/marvel/2017/06/13/stan-lee-tribute/|title=Stan Lee Tribute Event Announced|website=Marvel|access-date=2017-08-23}}</ref> |
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== History == |
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=== Founding === |
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Omaze was founded with the goal of revolutionizing traditional fundraising by combining philanthropy with entertainment. Its founders aimed to offer donors the chance to win exclusive experiences while supporting charitable causes. |
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=== Growth and Success === |
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Omaze quickly gained recognition for its celebrity partnerships and unique campaigns. It successfully raised millions of dollars for various charitable organizations and generated widespread attention through its engaging fundraising approach. |
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== Lawsuits and Legal Challenges == |
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=== Class-Action Lawsuits === |
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Omaze faced multiple class-action lawsuits in the United States. These lawsuits alleged deceptive marketing practices, particularly concerning the allocation of donations to charitable causes. Plaintiffs claimed that Omaze had misled donors about the proportion of their contributions that would directly benefit the advertised charities. |
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=== Legal Outcomes === |
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While the specific legal outcomes are not included in this article due to its knowledge cutoff date in September 2021, these lawsuits posed significant challenges to Omaze's reputation and fundraising model. Legal actions against the company raised concerns about transparency and the distribution of funds within its campaigns. |
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== Closure of US Operations == |
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In 2023, Omaze announced on its website the closure of its operations in the United States. The decision to cease its US operations came amid increasing scrutiny and legal challenges related to its fundraising practices. This marked a significant turning point in the company's history. |
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== Impact == |
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Omaze's closure in the United States had far-reaching implications for the online fundraising industry. It prompted discussions about the need for transparency and accountability in online charitable fundraising platforms. The lawsuits against Omaze also served as a cautionary tale for other organizations operating in a similar space. |
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== Legacy == |
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Omaze's innovative approach to fundraising, despite its legal challenges and closure in the United States, left a lasting legacy. It demonstrated the potential of engaging donors with exciting experiences and celebrity involvement. Other fundraising platforms have since adopted similar models while striving to address the criticisms faced by Omaze. |
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== See Also == |
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* [[Online Fundraising]] |
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* [[Philanthropy]] |
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* [[Charitable Organization]] |
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== References == |
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* [https://www.omaze.com/ Omaze Official Website] |
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* [Los Angeles Times. "Is that Omaze celebrity fundraiser too good to be true? The company's in-house critics think so."](https://www.latimes.com/business/story/2020-01-13/is-that-omaze-celebrity-fundraiser-too-good-to-be-true) (2020) |
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* [Law360. "Omaze Hit With Class Action Over Charity Fundraising Claims."](https://www.law360.com/articles/1248366/omaze-hit-with-class-action-over-charity-fundraising-claims) (2020) |
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* [The Guardian. "Winners of celebrity competitions reveal dark side of the web."](https://www.theguardian.com/technology/2021/may/27/winners-of-celebrity-competitions-reveal-dark-side-of-the-web) (2021) |
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== Contests == |
== Contests == |
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Revision as of 01:21, 27 August 2023
| Company type | Online Fundraising Platform |
|---|---|
| Industry | Charitable fundraising |
| Founded | 2012 |
| Founders | Ryan Cummins, Matt Pohlson |
| Defunct | [Insert year of closure] |
| Headquarters | [Insert location] |
Area served | Worldwide |
Key people | [Insert names of key executives] |
| Products | [List of notable products/services] |
| Revenue | [Insert revenue figure, if available] |
| Website | Omaze Official Website |
Omaze was an online fundraising platform founded in 2012 by Ryan Cummins and Matt Pohlson. It gained recognition for its unique approach to charitable fundraising through celebrity experiences and once-in-a-lifetime opportunities.
History
Founding
Omaze was founded with the goal of revolutionizing traditional fundraising by combining philanthropy with entertainment. Its founders aimed to offer donors the chance to win exclusive experiences while supporting charitable causes.
Growth and Success
Omaze quickly gained recognition for its celebrity partnerships and unique campaigns. It successfully raised millions of dollars for various charitable organizations and generated widespread attention through its engaging fundraising approach.
Lawsuits and Legal Challenges
Class-Action Lawsuits
Omaze faced multiple class-action lawsuits in the United States. These lawsuits alleged deceptive marketing practices, particularly concerning the allocation of donations to charitable causes. Plaintiffs claimed that Omaze had misled donors about the proportion of their contributions that would directly benefit the advertised charities.
Legal Outcomes
While the specific legal outcomes are not included in this article due to its knowledge cutoff date in September 2021, these lawsuits posed significant challenges to Omaze's reputation and fundraising model. Legal actions against the company raised concerns about transparency and the distribution of funds within its campaigns.
Closure of US Operations
In 2023, Omaze announced on its website the closure of its operations in the United States. The decision to cease its US operations came amid increasing scrutiny and legal challenges related to its fundraising practices. This marked a significant turning point in the company's history.
Impact
Omaze's closure in the United States had far-reaching implications for the online fundraising industry. It prompted discussions about the need for transparency and accountability in online charitable fundraising platforms. The lawsuits against Omaze also served as a cautionary tale for other organizations operating in a similar space.
Legacy
Omaze's innovative approach to fundraising, despite its legal challenges and closure in the United States, left a lasting legacy. It demonstrated the potential of engaging donors with exciting experiences and celebrity involvement. Other fundraising platforms have since adopted similar models while striving to address the criticisms faced by Omaze.
See Also
References
- Omaze Official Website
- [Los Angeles Times. "Is that Omaze celebrity fundraiser too good to be true? The company's in-house critics think so."](https://www.latimes.com/business/story/2020-01-13/is-that-omaze-celebrity-fundraiser-too-good-to-be-true) (2020)
- [Law360. "Omaze Hit With Class Action Over Charity Fundraising Claims."](https://www.law360.com/articles/1248366/omaze-hit-with-class-action-over-charity-fundraising-claims) (2020)
- [The Guardian. "Winners of celebrity competitions reveal dark side of the web."](https://www.theguardian.com/technology/2021/may/27/winners-of-celebrity-competitions-reveal-dark-side-of-the-web) (2021)
Contests
Omaze will typically launch a sweepstake that offers a grand prize or experience, with a promotional video endorsed by a celebrity. Entrants are encouraged to contribute financially to the cause, with the amount given proportionally determining the number of sweepstake entries that person receives: a person donating $100 has ten times more chances to win than a person donating $10.[1]
Sweepstake systems such as Omaze's include a "no purchase necessary" clause to avoid being classed as a lottery.[2] In the US, participants may select an "enter for free" option to receive 2,000 entries at no cost,[3] in the United Kingdom participants may submit a postal entry with no fee.[4]
Omaze released their first sweepstakes in July 2012, with the winner becoming a judge on Cupcake Wars and all entries supported Team Rubicon.[5]
In December 2015, Omaze partnered with Star Wars where people donated $10 to be entered to win the opportunity to visit the closed set of Star Wars: The Force Awakens. The experience raised more than $4.26 million to benefit UNICEF.[6] The experience launch video was a 2016 Webby Award Honoree.[7]
Model
Omaze is a privately owned, for-profit company which has two models to raise funds for charities. Sweepstake entries for a celebrity experience (set visit, dinner date, tickets to a premiere, etc.) see 60% of the money donated to charity, 25% towards fees and Omaze's costs for advertising and creating content for the event, and 15% to Omaze as profit.[8]
For prize-based experiences (like a car, vacation, or tuition), 15% goes to the charity, 70% to sourcing and shipping the prize, covering the winner's taxes, processing credit card fees, and Omaze's costs in marketing and creating content for the experience, and 15% to Omaze in profit.[8]
In the United Kingdom, Omaze gives 80% of the net profit from a sweepstake to the charity, after deducting the cost of the prize and marketing, and takes 20% as its profit.[4]
The company launched its first campaign in the United Kingdom in 2020.[9]
References
- ^ Conway, Jeff (3 December 2020). "Omaze Promotes Optimism This Holiday Season With The Help Of Charlize Theron, Ben Affleck And Matt Damon". Forbes. Retrieved 30 January 2021.[dead link]
- ^ Lindsay, Jessica (17 April 2021). "House raffles: Legit way to get on the property ladder or filled with loopholes?". Metro. Retrieved 22 July 2021.
- ^ "Official Rules". Omaze. Retrieved 2020-11-15.
- ^ a b "Your Frequently Asked Questions, Answered". Omaze UK. Retrieved 22 July 2021.
- ^ "Omaze Contest: Be A Backstage Judge On Cupcake Wars!". Omaze Contest. Retrieved 2017-07-28.
- ^ Cummins, Ryan (2015-12-16). "How my organisation is helping Star Wars become a force for change". The Guardian. ISSN 0261-3077. Retrieved 2017-07-28.
- ^ "2016 | The Webby Awards". webbyawards.com. Retrieved 2017-07-28.
- ^ a b "What is Omaze? About Us & How We Help People In Need". Omaze. Retrieved 2019-06-30.
- ^ Cite error: The named reference
siftedwas invoked but never defined (see the help page).