Ken Kamada and Eric Koester change the game with 501k.

According to a list compiled by The Daily Beast last December, Seattle is the most charitable city in the United States. Recently, two local entrepreneurs have developed a software application that enables Seattleites (and others, of course) to give money in a more convenient, user-friendly way.

By making the process easier — and thus, more appealing — Ken Kamada and Eric Koester hope their pet project, 501k, will revolutionize the way everyday people approach philanthropy.

Kamada is a former Wall Street investment manager, and currently works as an investment officer for a boutique firm, Helm Capital Management. Koester, a licensed attorney and CPA, is currently vice president of Appature, a Seattle-based software marketing firm.

The two have been developing 501k for the last year. Advertised as “A 401k for your 501(C)3 payments,” 501k is an application for Facebook, Twitter and other social networking sites. The platform allows users to create customized portfolios that contain all of their preferred charity organizations and enables them to make incremental payments of their choice with the click of a mouse.

“The advent of social networking has transformed the scope of charity outreach,” Kamada said. “When you have the platform online, it takes the geographical equation out of it. You can sit at your computer anywhere and give.”

The idea originated last summer, while Kamada and Koester were training to climb Mount Rainier. “We spent a lot of weekends hiking together, and we were able to bounce a lot of ideas off each other,” Kamada said.

Koester is a board member for Start-up Weekend (SUW), a nationwide entrepreneurship promotion program that functions as a forum for people to meet outside of the office and discuss potential projects. The two friends became involved with the program, and last November, they entered a SUW-sponsored conceptual design competition at Seattle University; out of 34 entrants, they placed first, and soon afterward, a team of developers had created a 501k interface for Facebook.

Koester, who has offered pro bono services to several charity groups, including Global Youth Fund, Starfish Africa and Northwest Girls Coalition, says his partnership with Kamada was forged in an extensive knowledge of non-profit organizations and the realm in which they successfully operate.

“Both Ken and I have volunteered with charities, donated to charities, and helped advise and fundraise with charities,” he explained. And with all that experience they knew there had to be an easier way for charities to raise money.

Koester believes their shared experiences in the investment banking field led to the 501k project. “As we talked more and more about it, we realized that as 401Ks had revolutionized saving, so could a similar idea applied to donating change charities. This ultimately became our inspiration.”

In addition to its user-friendliness, Kamada believes 501k will mitigate common excuses people use for not donating to charity. First, he said, many people feel that they must give a large amount to make a difference, and this affects those who may be strapped for cash. “If you [give money] in small amounts on a regular basis, that’s a pretty significant number you end up giving away,” he explained, adding that it’s not about those ready to cut a $10k check, it’s for those who just want to give something.

Kamada also added that 501k will pass through 95-96 cents for every $1 donated through 501k; 25 percent of charities in Washington state only pass through 20 cents, he explained, and most will not surpass 60-65 cents per dollar.

Kamada said the biggest obstacle standing between individuals and signing checks is ultimately lack of motivation. “You don’t normally associate laziness and being charitable, but it’s a major issue,” he explained. “[People] don’t have time, so they don’t want to go to a charity event.”

It’s for this reason that Kamada believes 501k will appeal to potential donors because of its convenience. “When people give, they feel good and know their money is going somewhere important,” he said, adding that smaller non-profits will gain a wider audience as a direct result.

“Our goal is to remove barriers that people [have with] donating,” Koester said, effectively summarizing the mission of 501k. “Quite simply, we want to do for donating what 401k did for savings. In the future, our hope is that whenever you start a new job or graduate from college, the first thing you do is set up your 501k plan.”

Currently, the team is aiming to release a full version of 501k by late spring or early summer of this year. To learn more, visit the site or sign up for regular updates via Twitter or Facebook. Want to learn more about setting up your own 501k plan? Watch this video for a tutorial.