Mobile Donations: Raise Money From Text Messages
April 29th, 2009 Posted by Tawnya Lancaster Posted in Blog, Uncategorized
Mobile Giving with PRx
Haven’t heard of mobile donations? You will. This technology is on the fast track for many nonprofits and political fundraising organizations as a way to access new donors. The value of mobile donations is their immediacy and ease-of-use. Donors simply text a keyword, such as “HOPE,” to a specified “short code” number, such as 12345, and a $5 or $10 donation is automatically charged to their mobile phone bill.
Prior to 2008, mobile donations were stymied due to the high fees charged by the telephone carriers. That changed last year when the Mobile Giving Foundation (MGF), a Washington-based nonprofit, came into the picture. The MGF has been able to broker deals with all the major phone carriers in the US to waive all fees for text message donations, allowing the nonprofits to collect 90 percent of the donation (10 percent goes to the MGF).
More than 150 nonprofits such as United Way, St. Jude Children’s Research Hospital, UNICEF, and the Red Cross, to name a few, have already jumped on board. Versign and the MGF predict that more than $5 million will be raised this year with mobile giving.
Mobile donations won’t help bring an immediate windfall to your organization. The donation levels are small (the current limit is $10) and nonprofits are limited to 5 text donations per month. But, the technology can serve as a way to open the door to a new demographic that you might not otherwise reach. And, it is especially good for targeting the technology savvy Gen Y and, to a lesser extent, Gen X generations. Check out these stats:
WHY GO MOBILE?
- 270 million mobile subscribers
- In 2008, 3.5 billion text messages (SMS) were sent every day—that averages to about 13 messages per day per American
- In 2008, the mobile industry racked up more than $32 billion in data-service revenue
- 68 percent of people 18-24, 37 percent of people 35-44 and 14 percent of those over 65 use text messaging
(The main target group for mobile donations is really the 18-44 age group.)
The two most important pieces of information you can gather from your donors are: 1) an opt-in email address and 2) an opt-in mobile phone number. With this information, a nonprofit has the ability to go back to its donor base time and again with complementary messages that together strengthen the donation pitch. Mobile technology can help you to get both of these.
Think about this: President Obama successfully used the mobile platform to help get him to the White House. Obama’s people had the insight long ago to realize they could leverage the mobile channel to do much more than just solicit donations. They could also engage supporters, mobilize volunteers and propel voters to the polls. And a recent article in Mobile Market says that by 2012 mobile voting could become a reality. Click here for more.
When you encourage donors to opt–in to your mobile program, you are then able to send alerts, updates and news of events through SMS messages. These personalized messages will improve the relationship between the nonprofits and the donor, and help you to push through the cacophony of marketing messages they’re already receiving to actually get their attention!
There are limitations on who can register with the MGF for mobile giving. You must meet the following requirements:
- US Non-Profit Organization registered as a 501c3 with at least $500,000 in annual revenues
- 501c3 must be in good standing for at least one year
- Patriot Act Compliant
- Must provide Form 990, Letter of Determination (Form 1045), and other documents as required
Mobile marketing, of course, doesn’t end with mobile giving. There are many other options to consider for your mobile campaign, some of which I will talk more about in next week’s post. I’ll list a few companies here, and how they used the mobile platform:
- The Secret: Premium subscription content
- Armani Exchange: Mobile coupons and promotions
- High School Musical 3: Fan engagement
- Shopaholic: Promotion, sponsorship and ticket sales
- Kaiser Permanente: Build awareness during federal open enrollment period
- The Cancer Action Network: Mobile advocacy
The ins and outs of mobile donations can be tricky. You can’t deal directly with the MGF and must work with one of its recommend providers. You should also be considering your larger donor communications strategy and how mobile marketing fits into that, especially as an adjunct to direct mail, events and personal solicitation. PRx has years of experience in philanthropy management and donor outreach.
If you’d like to set up an introductory meeting with our team at PRx to discuss the many ways you can use a mobile platform to reach out to, engage and garner support from your customers, donors or constituents, email me at tawnya(at)prxinc.com or call 408.287.1700.
