Time to Giveback!

Time to Giveback!

Lemonade’s 2017 Social Impact Report

Once a year, mid-year, Lemonade gives back underwriting profits to nonprofits. Today is Giveback Day, and we wanted to share some of the stats, implications and feelings.

What’s A Giveback?

A quick reminder: when you sign on for Lemonade, we ask you to choose your Giveback cause. People choosing the same cause form a ‘virtual group;’ behind the scenes, we use their premiums to pay their claims, and we Giveback any leftover money to their common cause.

So, How Much Is The 2017 Giveback?

In dollar terms, the 2017 Giveback is $53,174, amounting to 10.2% of the revenues Lemonade recognized from its September launch until June 30th. Accounting rules mean that Lemonade’s rapid growth will only be recognized in next year’s revenues, holding the promise of an exponentially larger Giveback in years to come.

So while dollar amounts are important for evaluating the impact of the 2017 Giveback, percentages provide a ‘leading indicator’ for how impactful Giveback can be as the business scales. In this report, we’ll cover both.

Giveback Percentages

We had 21 cause-centric-groups as of June 30, and 14 (66.6%) received a Giveback. Among those 14, the average Giveback is 18% of its members’ earned premiums.

All told, Giveback this year amounts to slightly over 10% of our revenue. As a point of reference, the Fortune 100 give 0.08% of their revenues each year (CECP p.36). So if year-one is anything to go by, Giveback has the potential to 100X that benchmark. Time will tell, but it’s an encouraging start.  

Beyond the change in scale, Giveback is a change in kind, because it isn’t dependent on profits (Lemonade hasn’t turned a profit yet). We think of Giveback as a social contract among our community, where the size and allocation is determined not by our big profits or big hearts, but by the good fortune and good behavior of our members.

As you’d expect, the fortunes of our members varied. Some groups had no claims at all, and 40 cents of every dollar these members paid went to their cause. These include MEET (bringing Palestinian and Israeli youth together through technology) and New Story (transforming slums into homes). The New York Society for Prevention of Cruelty to Children (The NYSPCC) came close, with a 36% Giveback (meaning their supporters had only a 4% ‘loss ratio’).

Other causes had a bunch of claims, leaving nothing for Giveback this year. Unfortunately, the Friends of Firefighters, for example, won’t be getting a Giveback this year, ironically because of a huge fire-related claim. Hopefully, next year they will. The model always predicted that not every group will get a Giveback every year, though we hope most groups will have more good years than bad. Again, time will tell.

The Impact Of $53,174

While we expect the Giveback to grow as we grow, in the right hands, $53,174 can already be impactful. Well, 2017’s Giveback is in the right hands! A complete list of the 14 Giveback causes is detailed at the end of this post, but here’s a sample of those dollars at work:

  • charity: water’s mission is to bring clean and safe drinking water to every person in the world. Through the 31% Giveback to charity: water, Lemonade members financed the rehabilitation of a well serving an entire community in Malawi!  
  • Citymeals on Wheels funds weekend, holiday and emergency meals to homebound elderly New Yorkers who can no longer shop or cook for themselves. The Lemonade team hand-delivered meals homebound elderly New Yorkers for July 4th, with the 16% Giveback funding 592 meals.
  • New Story is an incredible charity building homes for the homeless: Ernesto & Vilma Elizabeth Alfaro Quite?n?o live in Nuevo Cuscatlan, El Salvador. They lived with their two children in one room in the back of a family member’s house. That one room served as their bedroom, living room and kitchen. No longer. Through the 40% Giveback, Lemonade’s members have built a new home for the Quite?n?o family, from start to finish!
  • Robin Hood Foundation finds, funds, and creates programs and schools for families in NY’s poorest neighborhoods. Through the 6% Giveback to Robin Hood, the Lemonade community provided one night of safe shelter for 35 families.
  • WIN provides safe housing, critical services, and ground-breaking programs to empower homeless women and children. Through the 14% Giveback, the Lemonade community funded a childcare center with food, formula and diapers for six months.

The Giveback is going to meaningful places, impacting causes our community cares about, whether across the street or across the globe.

For us, Team Lemonade, this is deeply gratifying. At the end of the day, ‘it’s not our money.’ It’s money our community has entrusted to us, first and foremost to help our members recover from unfortunate events in their lives, and secondly to help the less fortunate in our broader community. We feel privileged to do both - and are grateful to our community for the trust and support.

Thank you!



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Lemonade Giveback proudly supported these charities as well:

  • ACLU aims to protect and defend American rights, values, and liberties. Through the 2% Giveback to ACLU, the Lemonade community supported the ACLU’s Project on Speech, Privacy, and Technology, which works to protect freedom of expression in its many forms, including protest, media, online speech, and the arts.
  • American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors. The 5% Giveback will go towards providing meals for 50 people post-disaster.
  • Code To Inspire teaches Afghan female students how to code in the hopes to create social, political, and economic equality. Through the 4% Giveback to Code To Inspire, Lemonade members financed six months of sustainable energy for the school where girls study coding in Afghanistan!
  • Evolve Creative Alliance partners with public and charter schools to provide students with a positive environment and a holistic experiential education. Through the 11% Giveback, the Lemonade community bought a week of supplies for hands-on activities and experiential learning for 1st and 2nd graders in Evolve Creative Alliance's Explore Express Afterschool program.  
  • Feeding America’s mission is to feed America’s hungry through a network of member food banks and engage the country in the fight to end hunger. Through the 19% Giveback to Feeding America, the Lemonade community provided 33,924 meals to hungry Americans!
  • MEET brings together young Israeli and Palestinian leaders to create positive change through technology and entrepreneurship, in partnership with the Massachusetts Institute of Technology (MIT). Through the 40% Giveback to MEET, the Lemonade community sponsored a field trip for young Israeli and Palestinian leaders to meet with tech industry leaders.
  • The NYSPCC (The New York Society for the Prevention of Cruelty to Children) offers and promotes programs that prevent child abuse and lessen its harmful effects. Through the 34% Giveback to The NYSPCC, the Lemonade community supported sexual abuse prevention workshops, which teach children what to do if they ever feel at risk.
  • Teach For America works to give all children in the United States the opportunity to attain an excellent education. Through the 32% Giveback to Teach For America, the Lemonade community supported the recruitment and training of veterans, members of the guard and reserve, and military spouses to become teachers.
Rick Huckstep

Thought Leader @ Wiser! | Self-Published Author, Emerging Technologies

7 年

Great to see you continuing the commitment to transparency Daniel. Many still don't get the significance of Lemonade Inc. You're a profit making platform that only takes 20% of customers money to provide insurance. No incumbent comes close! You don't make more profit by paying less out in claims. Customers can trust you to be fair. In return, they might be fair with you. Especially if they know any surplus is going to a good cause. I stand by everything I said when you launched last September. https://www.the-digital-insurer.com/blog/insurtech-lemonade-are-here-and-insurance-will-never-be-the-same-again/

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Nigel Walsh

Living at the edge of Insurance & Technology | Head of Global Insurance at ServiceNow | #makeinsurancelovable

7 年

Daniel - great to see! I really think in today's economy, transparency is the new currency (of course with a beautiful interface and relevant, easy to access, cost effective product). This is a great example of both and appeals for so many reasons - breaking the perceptions of Insurance. Its a win win for all, and great to see the Giveback making a real difference, especially in comparison to the Fortune 100. Reminds me much of the salesforce.com foundation and the work they do with their integrated philanthropy, quite simply - 1% of people, 1% of technology and 1% of resources. Both yours and this have been inbuilt from the outset. Lets not also forget some of the great initiatives that existing carriers and other firms do (including Deloitte) whether it's our One Million Lives campaign or supporting charities such as The Princes Trust - long may all of this continue. Look forward to seeing how this evolves but as you say, a great start!

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Rebecca Larson

Advisory | Senior Manager | CLM

7 年

I personally, love what you are doing. I can't wait until you write in CT.

Scott Walchek

Founder, CEO, Director, Investor, Advisor | Reinvesting 80,000 hours of start-up experience into founders and their teams.

7 年

I love this Daniel Schreiber! So good in so many ways.

Mohd Zukki Ab Rahman

Islamic Finance Practitioner

7 年

That is good. Keep it up.

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