Recently, I read several articles on "Mobile Giving" and I thought I'd share my thoughts and provide the important highlights:
For most nonprofits, raising money means asking donors to write a check. But why can't we treat charitable giving like we do music, maps and movies downloands? Well, thanks to new applications like GivABit - iPhone application in development that features charities on a daily basis allowing users to discover worthy causes and easily contribute micro donations to them. There's also other new mobile applications already in use that allow donors to simply text," $10, $20, and MEALS, WATER or ALIVE."
- Because 75% of the $300 billion raised last year came from individuals, mobile giving is a great way to tap into new demographics and make it more convenient for donors to quickly submit their contributions.
Why not make it as easy,fun and rewarding as possible? If we capitalize on the popularity of text messaging, which is used by almost 70 percent of people aged 18 to 24, then we are not only .
reaching out to younger donors, but also helping to lay the foundation for future generations to be "givers."
- While nonprofits relied on a smaller number of donors making large gifts in the past, the new paradigm is appealing to a vast number of smaller donors.
Mobile giving is taking off and inspiring new kinds of fundraising campaigns.
Examples:
- The American Red Cross raised $190,000 in donations last year from its Text 2HELP program.
- Alicia Keys raised $130,000 from mobile donors during the BET Awards Show in June. On stage, she asked viewers to make a $5 donation. More than 26,000 mobile donors responded with donations to Keep a Child Alive, a nonprofit that supports children with HIV/AIDS.
Mobile Giving Foundation:
- Jim Manis developed the Mobile Giving Foundation with co-founder Jenifer Snyder. Their goal was to provide a platform to connect mobile donors to nonprofits.
The foundation establishes standards and manages message delivery and billing across all carriers, and it acts as a billing and records clearinghouse between the carriers and the charities.
- Anyone with a mobile phone can use it to initiate a donation of $5 at a time. Donors send a text message with a certain word, such as HUMANE for the Humane Society or MEALS for Food Lifeline, to a designated number that has been set up for the charity.
Immediate response
- Donors immediately receive a message back asking for confirmation, which they can do by replying "yes" via text message. They receive a thank-you message back and a contact for questions. The charge appears on the donor's next cellphone bill.
Good to Know:
- It's important to maintain a standard amount to make the system simple and trustworthy, People can donate more than $5 by texting several times, and some carriers are accepting donations in $10 increments.
- The wireless carrier passes 100% of the gift to Mobile Giving, which passes 100% of it to the charity.
- The Mobile Giving Foundation charges 10 cents for each completed transaction to mobile marketing companies, such as mGive, that work with nonprofits to set up the campaign.
Cap set at the amount that marketing companies use for its billing system can charge to nonprofits — no more than 10 percent of the nonprofit's total fundraising cost.
Mobile giving isn't right for every nonprofit:
- "This is not appropriate for your local Little League," Manis said. The foundation generally doesn't work with organizations that have annual revenue less than $500,000.
Some charities worry they will "cannibalize" their own donors. "Their concern is that a contributor might take a $20 check and become a $5 donor" instead, Manis said.
In its Q13 campaign last fall, Food Lifeline saw no drop off in existing donors, and text messaging beat Internet donations two to one.
- Mobile Giving Foundation has facilitated about $1 million in pledges, but it still needs seed funding to operate. At 10 cents per transaction, its success depends on heavy volume.
Mobile Giving's Potential:
- Mobile giving has an enormous potential and future applications in microlending and mobile banking. The foundation is expanding to include wireless carriers in Canada in the fall.
What are your thoughts on mobile giving?
