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Connecting the causes you care about with the places you shop . . .




                     Executive Summary
                     November 30, 2012
Consumers want to support causes that matter to them via
                   their day-to-day purchases


   92%      . . . of Moms want to “Buy a product in which a portion of sales goes to the
            support of the cause or issue”

   93%      . . . of Moms are likely to switch brands for a product or company that
            supports a cause they care about

   70%      . . . of consumers would be willing to travel 11 minutes to go to a specific store
            to purchase a product that supports a cause they care about




   Sources: The Cone Cause Evolution Study, 2010; The “Do Well Do Good” Public Opinion Survey on Cause Marketing, 2010



                                                Proprietary and Confidential Property of
December 11, 2012                                                                                                        2
                                                     Communities For Cause, Inc.
This trend is clear




                    Our platform brings this to a local level

                             Proprietary and Confidential Property of
December 11, 2012                                                       3
                                  Communities For Cause, Inc.
“Scrip” and “daily deal” models allow consumers to support
         causes/schools through their spending – a $15B industry

Existing models . . .               . . . shortcomings                              . . . We have a better solution
                          Small percentage of sales goes to causes                  Higher value to Merchants
                           (4% or less)
                                                                                      Focus on new and loyal customers
                          Traditional scrip focuses on nat’l retailers
                           who place little value on acquiring local                 A better User Experience
                           customers
                                                                                      We eliminate cards and breakage
                          Some do not acquire new customers but
                           only track existing ones – limited value to
                                                                                     Greater return – less effort for Causes
                           merchants
                                                                                      More than 3-4X improvement
                          Promoting, selling and tracking of cards is a
                           lot of work for causes with little return
                                                                                     Additional revenue streams
                          The user experience is poor and often                      Leverage mobile technology
                           results in breakage (10-25% of
                           cards/coupons go unused)

                          “Daily deal” sites do not create customer
                           loyalty


                                         Proprietary and Confidential Property of
     December 11, 2012                                                                                                   4
                                              Communities For Cause, Inc.
“Communities for Cause” connects Causes, their Supporters
                      and Local Merchants
Participating Merchants are promoted within the cause membership and, in
return, donate a percentage of associated sales


                                                          Local
                                                         Merchant
       3                                                                         1
              Supporters shop with local                                              Merchants offer a donation
             merchants to earn donations                                               as a percent of each sale




                                      Supporters                            Cause



                                           2
                                                 Causes promote local
                                               merchants to their members


                        We retain 20% of donations as a processing fee

                                           Proprietary and Confidential Property of
12/11/2012                                                                                                         5
                                                Communities For Cause, Inc.
How it works

      1    Find offers by category                         2 Register your
           or location                                       purchase as you shop




                            Confirm donations with                                    See your efforts making
                        3                                                         4
                            a QR code                                                 a difference




December                               Proprietary and Confidential Property of
11, 2012                                                                                                        6
                                            Communities For Cause, Inc.
We made notable progress in a very short time
                 Timeline                                                      Causes – Partial List
                                                                     (70+ represented in Orange County Area)

• Nov. '11: Company formed                     Education                                   Medical
• Dec. '11: Beta product (iPhone)              • Irvine Public Schools Foundation          • American Red Cross
• Jan. '12: Pilot launch with 1 school           (all 32 public schools in Irvine)         • Beckstrand Cancer Foundation
• Mar. '12: v1 Product (iPhone and             • The Pegasus School                        • Cure Duchenne
  Android)                                     • Huntington Beach Educational Foun.        • Leukemia & Lymphoma Society
• Mar-May ’12: Initial rollout across          • Kaiser Woodland Schools Foun.             • Moving Hearts Foundation
  memberships in Orange County                 • Fountain Valley Educational Foun.         Youth Development
                                               US Armed Forces                             • YMCA Newport Mesa
                                               • The Injured Marine Semper Fi Fund         • Big brothers, big sisters

                                                   Merchants – Partial List
                                            (120+ represented in Orange County Area)
Restaurants                      For Kids                           For Moms                       Auto
• Pascal                         • Mathnasium                       • Lugano Diamonds              • OC Buick, Cadillac, GMC
• Café Jardin                    • Pump it up                       • Armando – A Joshua           • Pristine Motors
• Chili’s                        • 5 Seas for Kids                    Christopher Salon            Wines and Spirits
• Jersey Mike’s                  • Music and the Arts for Kids      • Nails by Kim                 • Main Street Wine Company
• Wingstop                       • Studio Fusion                    • 5 Seas Boutique              • Rolfs Wine
• Roundtable Pizza               Snacks and Treats                  • Verbania Boutique            Household
• Lamppost Pizza                 • 33 Degrees                       Sports and Recreation          • Crystal Coast Optometry
• Red Brick Pizza                • Juice it Up!                     • Two Wheels One Planet        • College Nannies & Tutors
• Subway                         • Baskin Robbins                     Bicycles                     • Critter Clipper
• Zpizza                                                                                           • Crown Cleaners



                                                Proprietary and Confidential Property of
    December 11, 2012                                                                                                           7
                                                     Communities For Cause, Inc.
And usage is accelerating with zero promotion
                     1,000 users . . . 1,000 transactions . . . And 10,000 searches

                    Downloads   Transactions
                                                                                      Mobile App Searches
1000                                                              10000
 900                                                               9000
 800
                                                                   8000
 700
                                                                   7000
 600
                                                                   6000
 500
                                                                   5000
 400
                                                                   4000
 300
                                                                   3000
 200
                                                                   2000
 100
                                                                   1000
   0
                                                                       0




                            $215,000 in Merchant Sales in 8 months


                                           Proprietary and Confidential Property of
December 11, 2012                                                                                           8
                                                Communities For Cause, Inc.
The pilot verified key assumptions


What we learned . . .

•    50% of users logged-on over multiple months (2+ months)
•    We drive incremental sales for merchants
     (avg. 14 per merchant, highest is 112)
•    High retention – haven’t lost a single merchant
•    High adoption – 40%+ in some schools
•    Broadly relevant to causes and merchants
•    Merchant acquisition at <$300 is feasible
•    Bounty is an effective vehicle to incent causes in acquiring merchants
     ($150/merchant)
•    No resistance to our 20% processing fee




                                Proprietary and Confidential Property of
December 11, 2012                                                             9
                                     Communities For Cause, Inc.
We provide greater and sustainable value to all constituents


Merchant             •   Merchants are acquired once and remain on the platform (i.e., no re-acquisition)
Acquisition          •   Risk free value proposition (i.e, only make donations when you get a sale)
“Compelling”         •   Loyalty-driven value proposition (i.e., not mercenary bargain shopping))



   User              •   Co-marketing with causes for cost effective acquisition
Acquisition          •   Greater adoption rates (e.g., opt-in, download, transact)
 “Near zero          •   Our platform powers the cause’s program (i.e., we’re in the background)
   cost”



Consumer             •   No breakage (i.e., unredeemed coupons or gift-cards)
Experience           •   Mobile app to stay “top of mind” (e.g., alerts, notifications, LBS)
“Frictionless”       •   Empowes users to support their cause when and where they want (i.e., on the go)




                                        Proprietary and Confidential Property of
 December 11, 2012                                                                                   10
                                             Communities For Cause, Inc.
Our model has notable advantages

                          Groupon                             MOGL                     CfC
Consumer                Bargain shopper             Mixed – loyalty rewards     Shop for your cause
                                                     and cause marketing
Proposition
Merchant             Entice bargain shoppers       Loyalty – to merchants or   Incremental sales from
                            to sample                    the platform?             loyal customers
Proposition
User Acquisition               $30                               $12                   $2-3


Merchant                     $4000+                           $2500+                 $200-300
Acquisition              “offer by offer”             “Feet on the street”         Acquire once
                                                                               “Causes as a channel”
Quarterly                      $15                             $12-20                   $27
Rev/Customer
Margin                        39%                               30%                    56%




                                 Proprietary and Confidential Property of
 December 11, 2012                                                                                      11
                                      Communities For Cause, Inc.
Financials




                    Proprietary and Confidential Property of
December 11, 2012                                              12
                         Communities For Cause, Inc.
Seed round




                    Proprietary and Confidential Property of
December 11, 2012                                              13
                         Communities For Cause, Inc.
Management Team
Carlos Aguilar                Jennifer Aguilar                     Gary Allhusen
Co-Founder                    Dir. of Community                    Co-Founder
CEO                                                                Chairman
Ernst & Young                 The Pegasus School                  OC school
•   Global Mkts Leader        •   Scrip fundraising chair         • board member,
•   Customer Strategy         Special Olympics                        development committee
The Walt Disney Co.           •   Volunteer manager                Silver Bridge Associates
• VP Marketing & Alliances    Cap Gemini                          •   CEO, IT Services
• VP New Media & Technology   • Mgr Software Devpmt               Caneum, Inc
A. T. Kearney                 Ernst & Young                       • COO, IT Services Startup
• Technology Strategy         • Mgr Software Devpmt               EDS and A. T. Kearney
                                                                  • Principle, IT Strategy.




                                            Proprietary and Confidential Property of
December 11, 2012                                                                              14
                                                 Communities For Cause, Inc.
Advisory Board
Lawrence Aldridge             Jeff Goffman                           Erik Anderson                     Aaron Sloman
Advisor                       Advisor                                Advisor                           Advisor


                                                                                                      • GM Perficient SW Devpmt
• Chief Alliance Officer,     • CEO Integrated Oncology              • Pres. – Anderson Financial     • Founder SpeakTECH
  UnitedHealth                  Network                              • Pres - A. Gary Anderson        • Fmr Sr. Technologist Microsoft
• Fmr SVP Alliances, Disney   • Founder Oncure Medical                 Family Foundation
• Fmr VP Global Sourcing,     • Founder US Diagnostic                • Former VP Trading,
  Disney                      • Fmr Chair Amer Cancer                  Directors Mortgage
• Fmr Chief Procurement         Society                              • Tech investor/advisor
  Officer, ARCO                                                        CMC, Parallax, Savant



Kurt Mulville                 Rob Dang                               Jeff Sakaguchi                    Pat Wilkison
Advisor                       Advisor                                Advisor                           Advisor



• Partner at Orrick           • Partner Fortis General Counsel   •     Chair. American Red Cross LA   • Marketing Western Digital
                              • Tech startup advisor – Zynga,    •     Fmr Accenture Partner          • Tech investor/advisor
                                Yahoo, mFoundry, et. al.         •     Fmr McKinsey & Co.               Blackbook, Cirro, Predixion
                                                                 •     Technology Executive             Software, Flowsearch,
                                                                                                        twtMob, Moberitus,
                                                                                                        GenieDB, LegacyDirect




                                           Proprietary and Confidential Property of
December 11, 2012                                                                                                                     15
                                                Communities For Cause, Inc.

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Cfc summary 20121128

  • 1. Connecting the causes you care about with the places you shop . . . Executive Summary November 30, 2012
  • 2. Consumers want to support causes that matter to them via their day-to-day purchases 92% . . . of Moms want to “Buy a product in which a portion of sales goes to the support of the cause or issue” 93% . . . of Moms are likely to switch brands for a product or company that supports a cause they care about 70% . . . of consumers would be willing to travel 11 minutes to go to a specific store to purchase a product that supports a cause they care about Sources: The Cone Cause Evolution Study, 2010; The “Do Well Do Good” Public Opinion Survey on Cause Marketing, 2010 Proprietary and Confidential Property of December 11, 2012 2 Communities For Cause, Inc.
  • 3. This trend is clear Our platform brings this to a local level Proprietary and Confidential Property of December 11, 2012 3 Communities For Cause, Inc.
  • 4. “Scrip” and “daily deal” models allow consumers to support causes/schools through their spending – a $15B industry Existing models . . . . . . shortcomings . . . We have a better solution  Small percentage of sales goes to causes Higher value to Merchants (4% or less)  Focus on new and loyal customers  Traditional scrip focuses on nat’l retailers who place little value on acquiring local A better User Experience customers  We eliminate cards and breakage  Some do not acquire new customers but only track existing ones – limited value to Greater return – less effort for Causes merchants  More than 3-4X improvement  Promoting, selling and tracking of cards is a lot of work for causes with little return Additional revenue streams  The user experience is poor and often  Leverage mobile technology results in breakage (10-25% of cards/coupons go unused)  “Daily deal” sites do not create customer loyalty Proprietary and Confidential Property of December 11, 2012 4 Communities For Cause, Inc.
  • 5. “Communities for Cause” connects Causes, their Supporters and Local Merchants Participating Merchants are promoted within the cause membership and, in return, donate a percentage of associated sales Local Merchant 3 1 Supporters shop with local Merchants offer a donation merchants to earn donations as a percent of each sale Supporters Cause 2 Causes promote local merchants to their members We retain 20% of donations as a processing fee Proprietary and Confidential Property of 12/11/2012 5 Communities For Cause, Inc.
  • 6. How it works 1 Find offers by category 2 Register your or location purchase as you shop Confirm donations with See your efforts making 3 4 a QR code a difference December Proprietary and Confidential Property of 11, 2012 6 Communities For Cause, Inc.
  • 7. We made notable progress in a very short time Timeline Causes – Partial List (70+ represented in Orange County Area) • Nov. '11: Company formed Education Medical • Dec. '11: Beta product (iPhone) • Irvine Public Schools Foundation • American Red Cross • Jan. '12: Pilot launch with 1 school (all 32 public schools in Irvine) • Beckstrand Cancer Foundation • Mar. '12: v1 Product (iPhone and • The Pegasus School • Cure Duchenne Android) • Huntington Beach Educational Foun. • Leukemia & Lymphoma Society • Mar-May ’12: Initial rollout across • Kaiser Woodland Schools Foun. • Moving Hearts Foundation memberships in Orange County • Fountain Valley Educational Foun. Youth Development US Armed Forces • YMCA Newport Mesa • The Injured Marine Semper Fi Fund • Big brothers, big sisters Merchants – Partial List (120+ represented in Orange County Area) Restaurants For Kids For Moms Auto • Pascal • Mathnasium • Lugano Diamonds • OC Buick, Cadillac, GMC • Café Jardin • Pump it up • Armando – A Joshua • Pristine Motors • Chili’s • 5 Seas for Kids Christopher Salon Wines and Spirits • Jersey Mike’s • Music and the Arts for Kids • Nails by Kim • Main Street Wine Company • Wingstop • Studio Fusion • 5 Seas Boutique • Rolfs Wine • Roundtable Pizza Snacks and Treats • Verbania Boutique Household • Lamppost Pizza • 33 Degrees Sports and Recreation • Crystal Coast Optometry • Red Brick Pizza • Juice it Up! • Two Wheels One Planet • College Nannies & Tutors • Subway • Baskin Robbins Bicycles • Critter Clipper • Zpizza • Crown Cleaners Proprietary and Confidential Property of December 11, 2012 7 Communities For Cause, Inc.
  • 8. And usage is accelerating with zero promotion 1,000 users . . . 1,000 transactions . . . And 10,000 searches Downloads Transactions Mobile App Searches 1000 10000 900 9000 800 8000 700 7000 600 6000 500 5000 400 4000 300 3000 200 2000 100 1000 0 0 $215,000 in Merchant Sales in 8 months Proprietary and Confidential Property of December 11, 2012 8 Communities For Cause, Inc.
  • 9. The pilot verified key assumptions What we learned . . . • 50% of users logged-on over multiple months (2+ months) • We drive incremental sales for merchants (avg. 14 per merchant, highest is 112) • High retention – haven’t lost a single merchant • High adoption – 40%+ in some schools • Broadly relevant to causes and merchants • Merchant acquisition at <$300 is feasible • Bounty is an effective vehicle to incent causes in acquiring merchants ($150/merchant) • No resistance to our 20% processing fee Proprietary and Confidential Property of December 11, 2012 9 Communities For Cause, Inc.
  • 10. We provide greater and sustainable value to all constituents Merchant • Merchants are acquired once and remain on the platform (i.e., no re-acquisition) Acquisition • Risk free value proposition (i.e, only make donations when you get a sale) “Compelling” • Loyalty-driven value proposition (i.e., not mercenary bargain shopping)) User • Co-marketing with causes for cost effective acquisition Acquisition • Greater adoption rates (e.g., opt-in, download, transact) “Near zero • Our platform powers the cause’s program (i.e., we’re in the background) cost” Consumer • No breakage (i.e., unredeemed coupons or gift-cards) Experience • Mobile app to stay “top of mind” (e.g., alerts, notifications, LBS) “Frictionless” • Empowes users to support their cause when and where they want (i.e., on the go) Proprietary and Confidential Property of December 11, 2012 10 Communities For Cause, Inc.
  • 11. Our model has notable advantages Groupon MOGL CfC Consumer Bargain shopper Mixed – loyalty rewards Shop for your cause and cause marketing Proposition Merchant Entice bargain shoppers Loyalty – to merchants or Incremental sales from to sample the platform? loyal customers Proposition User Acquisition $30 $12 $2-3 Merchant $4000+ $2500+ $200-300 Acquisition “offer by offer” “Feet on the street” Acquire once “Causes as a channel” Quarterly $15 $12-20 $27 Rev/Customer Margin 39% 30% 56% Proprietary and Confidential Property of December 11, 2012 11 Communities For Cause, Inc.
  • 12. Financials Proprietary and Confidential Property of December 11, 2012 12 Communities For Cause, Inc.
  • 13. Seed round Proprietary and Confidential Property of December 11, 2012 13 Communities For Cause, Inc.
  • 14. Management Team Carlos Aguilar Jennifer Aguilar Gary Allhusen Co-Founder Dir. of Community Co-Founder CEO Chairman Ernst & Young The Pegasus School OC school • Global Mkts Leader • Scrip fundraising chair • board member, • Customer Strategy Special Olympics development committee The Walt Disney Co. • Volunteer manager Silver Bridge Associates • VP Marketing & Alliances Cap Gemini • CEO, IT Services • VP New Media & Technology • Mgr Software Devpmt Caneum, Inc A. T. Kearney Ernst & Young • COO, IT Services Startup • Technology Strategy • Mgr Software Devpmt EDS and A. T. Kearney • Principle, IT Strategy. Proprietary and Confidential Property of December 11, 2012 14 Communities For Cause, Inc.
  • 15. Advisory Board Lawrence Aldridge Jeff Goffman Erik Anderson Aaron Sloman Advisor Advisor Advisor Advisor • GM Perficient SW Devpmt • Chief Alliance Officer, • CEO Integrated Oncology • Pres. – Anderson Financial • Founder SpeakTECH UnitedHealth Network • Pres - A. Gary Anderson • Fmr Sr. Technologist Microsoft • Fmr SVP Alliances, Disney • Founder Oncure Medical Family Foundation • Fmr VP Global Sourcing, • Founder US Diagnostic • Former VP Trading, Disney • Fmr Chair Amer Cancer Directors Mortgage • Fmr Chief Procurement Society • Tech investor/advisor Officer, ARCO CMC, Parallax, Savant Kurt Mulville Rob Dang Jeff Sakaguchi Pat Wilkison Advisor Advisor Advisor Advisor • Partner at Orrick • Partner Fortis General Counsel • Chair. American Red Cross LA • Marketing Western Digital • Tech startup advisor – Zynga, • Fmr Accenture Partner • Tech investor/advisor Yahoo, mFoundry, et. al. • Fmr McKinsey & Co. Blackbook, Cirro, Predixion • Technology Executive Software, Flowsearch, twtMob, Moberitus, GenieDB, LegacyDirect Proprietary and Confidential Property of December 11, 2012 15 Communities For Cause, Inc.