DRESHER, PA — Ascensus has made a strategic investment in education-savings technology provider Nonprofitly, deepening a decade-long partnership aimed at expanding state-run child savings account programs that collectively hold more than $3.5 billion in assets.
Financial terms of the transaction were not disclosed.
The deal strengthens Ascensus’ position in the growing market for state-sponsored savings initiatives by combining its 529 plan administration business with Nonprofitly’s technology platform, Outcome Tracker, which supports child savings account programs across 14 states.
Child savings accounts are designed to encourage long-term education savings by providing children with starter contributions and investment accounts, often funded or supported by state governments, nonprofits, or community organizations.
According to the companies, Outcome Tracker currently supports more than 6.5 million child savings accounts.
Ascensus, one of the largest administrators of 529 college savings plans in the United States, said the investment will allow for closer integration between its administration services and Nonprofitly’s data and program management platform.
The transaction comes as policymakers and state governments continue exploring ways to increase education savings participation among lower-income and first-generation college-bound families. Interest in the sector has also expanded alongside emerging savings initiatives, including proposals for federally supported investment accounts.
“These programs are an important catalyst for early education savings,” Peg Creonte, president of Ascensus Government Savings, said in a statement, adding that child savings accounts can complement traditional 529 plans and newer approaches such as Trump Accounts.
As part of the transaction, Creonte will join Nonprofitly’s board of directors. Ascensus Chief Corporate Development Officer Raghav Nandagopal will serve as a board advisor.
Ascensus said it currently administers 49 different 529 savings plans across 31 states and the District of Columbia, making it one of the largest providers in the education-savings market.
Nonprofitly founder and Chief Executive Officer Matt Schubert said the companies will focus on helping states expand savings programs through a combination of technology and program management services.
The companies did not disclose whether the investment included an ownership stake, governance rights beyond the board appointments, or future acquisition options.
Legal counsel for Nonprofitly on the transaction was provided by Gentry Locke Attorneys. The firm’s deal team was led by partners Wythe Michael and Mike Moro.
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