Mobile giving – donating via a cell phone text message - is one of the latest trends in philanthropy. The way the system works is this: the donor texts a keyword to a special number belonging to the charity (known as a “short code”). Then, the donor receives a message asking them to confirm their donation. Once the donation is confirmed, their cell phone service provider (a carrier) places these small donations (usually $5 or $10) on the person’s cell phone bill. Five percent of each donation goes to the Mobile Giving Foundation, but the rest of the money goes to the charity.
Mobile giving targets the Millennial Generation (those born 1982-2002) because “they check their cell phones every couple of minutes,” according to Jessie Newburn, a social media consultant. Newburn adds, “Mobile giving is therefore very relevant to this group. GenXers [those born 1961-1981] can’t live without email; Millennials can’t live without their mobile phones.”
Stephen W. Joos, Director of Campaigns at a mobile application service provider, whose signature program is mGive (www.mgive.com), says a mass marketing appeal is the best type of campaign for mobile donations. Joos says mobile giving works best for television campaigns, pledge drives, concerts, and sports events. At large events like these, usually 8-10% of people donate immediately, a percentage that will continue to rise as mobile giving becomes more prevalent.
Mobile donations are extremely effective for impulse and emotional appeals. During the 2004 tsunami, millions of dollars were raised worldwide by mobile giving. Soon, organizations will be able to build a steady donor base by setting up recurring donations of $5 or $10 a month.
Even small organizations can use mobile giving. Think of making an announcement at a high school football game, a pancake breakfast, a city festival, local concerts, or by door-to-door fundraising. Also, consider adding a mobile donation option to websites and to social networking sites.
Before a mobile giving campaign can send a text message, the donor must first opt-in through either a form on the organization’s website or by sending a text message to the charity’s short code. The charity also needs to have an opt-out feature in every message they send. The opt-out feature is very important to young people because they want to have a choice, says Newburn. Newburn also suggests finding a way to allow young people share the giving opportunity with their friends and “…to enjoy a happy competition within their peer group that will propel them to a goal.”
Currently, a charity cannot (cost effectively) set up a mobile giving campaign without the Mobile Giving Foundation. To start a mobile giving campaign, find a mobile application vendor that specializes in charitable work. The campaign will start in 4-6 weeks, and will include support, tracking, advice, and a system to handle incoming and outgoing messages.
These vendors normally charge for setup, monthly usage, and per-message usage. However, as this technology gains popularity, new vendors will soon be entering the market.
Glossary:
Mobile Application Service Provider/Vendor (like mGive – www.mgive.com)
This service provider has systems that enable text message donations. They obtain approval for the campaign from the Mobile Giving Foundation, set up the campaign with carriers, and promote the campaign.
The Mobile Giving Foundation
MGF (www.mobilegiving.org) is a non-profit organization that oversees mobile giving standards and practices. They approve charities wanting to start a mobile giving campaign. They also assist in moving donated funds from the carriers to the participating charities.
Text Aggregator
These devices (like mBlox and Verisign) work with mobile carriers to test and approve the campaign before starting the campaign. They make sure the campaign follows the mobile marketing rules.
The Carriers (AT&T and Verizon Wireless)
These companies process donation requests from the mobile application service provider and place the donation on the user’s phone bill.
Information taken from: Joanne Fritz. “Mobile Giving – How to Make it Work for Your Nonprofit.” http://nonprofit.about.com
--Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.