How It works

How Runstr Works: A New Era of Sustainable School Funding

Traditional school fundraising—relying on product sales, galas, and transactional donations—is facing a crisis of efficiency. Donor retention is declining, administrative burdens are rising, and the educational connection is often lost.

Runstr modernizes this outdated model by applying Creator Economy principles to education. We replace one-off transactions with recurring relationships, empowering students to fund their schools by sharing their academic and extracurricular journeys.

The Core Mechanism: From Transaction to Connection

Runstr operates on a subscription-based model similar to platforms like Patreon, but designed specifically for the K-12 ecosystem.

1. The Student Creates

Students build a secure, private profile where they document their growth. This isn't just social media; it is a portfolio of their academic and extracurricular journey—from science fair projects to soccer games.

  • Skill Building: Students learn digital storytelling, personal branding, and communication.

  • Ownership: Students become active stakeholders in their school's financial success.

2. The Supporter Subscribes

Family members, friends, and community supporters subscribe to the student’s profile for a monthly fee (set by the student).

  • Value: Instead of buying overpriced wrapping paper, supporters gain a transparent window into the student's life and progress.

  • Engagement: Supporters feel directly connected to the educational outcome of their contribution.

3. The School Receives Funding

This is where the model shifts from "fundraising" to "sustainable revenue."

  • Direct Revenue: The school receives the direct, recurring funds from every subscription.

  • Predictability: Unlike seasonal sales, subscriptions provide a steady, predictable cash flow that allows districts to budget effectively.

The Financial Model: Radical Transparency

We believe in a model that maximizes impact for the school while ensuring platform sustainability.

  • Student Sets the Price: Students choose the monthly subscription tier for their supporters.

  • The Runstr Fee: A flat $5.00 platform fee is deducted from each subscription payment to cover technology, security, and payment processing.

  • The School's Share: The entire remainder goes directly to the school.

Example Scenario: If a student sets their subscription price at $15/month:

  • $5.00 goes to Runstr.

  • $10.00 goes directly to the School.

With just 100 students each getting 5 supporters at this rate, a school generates $5,000 in monthly recurring revenue—$60,000 annually—without selling a single product.

The Strategic Case: Why This Model Wins

1. Solving the Fundraising Inefficiency

Traditional fundraising is labor-intensive and yields low returns.

  • The Data: Donor retention rates are declining across the nonprofit sector. Schools often keep less than 50% of proceeds from product sales.

  • The Runstr Solution: We eliminate inventory, distribution, and administrative overhead. The "cost of fundraising" drops to near zero for the school, maximizing the net revenue.

2. Addressing the Financial Literacy Gap

The Runstr model is educational by design.

  • The Problem: 1 in 5 U.S. teenagers lacks basic financial literacy skills. While 68% of teens want financial education, only ~31% have access to it in school.

  • The Runstr Solution: By managing their own "micro-business" on Runstr, students learn the value of recurring revenue, how to communicate value to stakeholders (supporters), and the direct link between effort and financial support.

3. Leveraging the Creator Economy

The global creator economy is a $250 billion industry that is reshaping how value is created and captured.

  • The Trend: "Creator Educators" are the fastest-growing segment of this economy.

  • The Runstr Solution: We prepare students for the modern workforce by teaching them how to build a community and monetize their narrative positively. This is not just fundraising; it is digital career readiness.

Summary for Stakeholders

For Schools

  • The Old Way: Seasonal, unpredictable cash flow (bake sales, galas) requiring high administrative effort.

  • The Runstr Way: Monthly Recurring Revenue (MRR) with zero inventory and predictable budgeting.

For Students

  • The Old Way: Passive participants selling goods they often don't care about.

  • The Runstr Way: Active creators building skills in communication, financial literacy, and digital media.

For Parents & Supporters

  • The Old Way: Transactional purchases of unwanted products out of obligation.

  • The Runstr Way: Relational investment in a child's journey, receiving updates and transparency.