Charitableway.com, the company that provides the technology for online payroll deductions for United Way and other nonprofits, said it plans to close.
“The marketplace has turned out to be smaller than we expected. Our ability to attract new customers has been slower than we anticipated,” said John Truscott, Charitableway vice president of marketing.
“And we knew that with the current financial climate it would be hard to attract new investment,” Truscott said.
Even if the San Carlos, CA, company did attract new customers in the coming months, it would be some time before it could become self-sufficient. In the meantime, Charitableway would need short-term investors.
Since former Microsoft and Softbank executive Pete Mountanos founded Charitableway in May 1999, the company has received $43 million in funding from Technology Crossover Ventures, Softbank Technology Ventures, Benchmark Capital, and other corporations and private equity firms.
Truscott said Charitableway clients include 10 Fortune 1000 companies, but he would not specify which ones.
Charitableway, which has about 120 employees, is in the process of transferring its clients' business to other providers, Truscott said.
The various United Way of America chapters collect funds through payroll deductions and fund many charities across the country.