The service is free, and with a name like Change.org the company even sounds like a not-for-profit. But it's not. It was founded in 2007 and spent the better part of two years flailing around for a profitable business model until Rattray hit upon a clever approach. Change.org charges groups for the privilege of sponsoring petitions that are matched to users who have similar interests. For example, when a person signs a petition about education and clicks "submit," a box pops up and shows five sponsored petitions on education to also sign. If a user leaves a box checked that says "Keep me updated on this campaign and others," the sponsor can then send e-mails directly to that person. It's not clear from the check box that your e-mail address is being sold to a not-for-profit. Rattray says an imminent site redesign will make the company's business model more transparent. Change.org has 300 paying clients, including Sierra Club, Credo Wireless and Amnesty International, and its revenue so far this year is $15 million.
Some of the petitioners FORBES spoke with didn't know Change was a for-profit. Rattray says the .org connotes the company's social mission, and it is a certified B Corporation, which means a social mission is written into its bylaws. But he acknowledges the messaging could be better and plans to improve it: "We need to be better about telling about that combination."
Change.org is the for-profit, online-petition site famous for forcing Bank of America and Verizon to roll back customer fees, or so it claims. The company sells access to its members to groups keen to raise funds.
There are several sites like it, and they are growing rapidly. But few if any are growing as rapidly as Change.org, and none has made as big a splash in corporate America. "I have huge problems with Change.org because they are a lead-generation business disguised as a social-change organization for whoever is willing to pay them for the email addresses," says Clay Johnson, author of "The Information Diet" and a veteran of fund raising through social media. "It's dangerous to monetize 'change' because there's an economic incentive to sensationalize." Change.org is testing the boundary between profit-making and social activism. The company says there really is no boundary. You can't do good works unless you can pay your way.