Mobile Donations

Immediacy & efficiency are motivating mobile donations

Many nonprofits are jumping on the mobile donation bandwagon because nothing beats it's immediacy and efficiency.

In the world of fundraising, when someone decides they want to give it is imperative that you get their money as quckly and easuily as possible because a certain percentage will change their minds if too much time passes.

With mobile giving, the response is immediate, the collection of the funds is guaranteed, and fewer employee/volunteer hours are needed - all of these factors add to the appeal of instant SMS giving.

Efficiency is the name of the game in almost every business and industry and non-profits are trying to make the most of their budgets, just like corporate America. By using SMS for mobile donations, the appearance of being cutting edge and savvy also seems to increase donor confidence.

With every form of raising money there are expected costs associated with collecting the promised funds. But with the carriers collecting the money on the dononrs phone bill, a huge part of the money trail is already taken care of by using mobile donations.

At the end of the day, the immediacy and efficiency of the mobile donation far surpasses other current forms of giving so you should expect to see it more and more.

Gathering Data is key to future mobile donations

Many well known charities such as the Red Cross and The Leukemia & Lymphoma Society (LLS) have helped notarize mobile giving. But besides collecting money, these non-profits can also use mobile giving as a tool to capture information that can be used in the future.

It all starts with requiring an opt-in from the donor before they actually donate. Most peopel would never know the different. But by offering a compliant opt-in as part of the donation a nonprofit is then able to interact with them now, and again later.

For example, imagine a message that asks recipients to reply with which project they want to donate... reply A) Child Services B) Food Drives C) Construction Projects D) Any and All.

If someone replies B) then a specific Food Drive message can be sent along with an opportunity to donate to that particular project. Now the next time you have a Food Drive update or want to introduce a new Food Drive project, the entire process has been simplified and the recipient is much more likely to get involved or donate.

Not all of the mobile giving companies agree on this. The Red Cross received millions of donations for Haiti and never got a single mobile opt-in during the crisis. If they had been using the SUMOTEXT platform, they would have had to opt-in in order to give and now the Red Cross could have sent all those previous donors in Haiti a request to help donate in Japan.

There are certain requirements for a 501c3 non-profit to participate in mobile giving, but if you qualify, then benefits of gathering data can become one of your favorite aspects to mobile donations. But it is clear that mobile donating will be advancing, and the more information you can know about your donor, the more likely you are to get a future donation.

Fund raising sees a youth movement

All non-profits need donations to sustain their basic budgets and help fulfill their charitable services. But many of the youth have never donated to a charity or volunteered for a non-profit because of the perception that they are too young or the fact they don't have a checkbook or credit card.

But all the young people today have mobile phones and one way non-profit organizations can now receive donations is through mobile donations and studies have shown that the youth are much more likely to donate in this way.

Currently, a person can only donate $5 or $10 through their mobile device, so this is not really a danger to a surprisingly huge phone bill as a result. Also, most mobile donation campaigns have a limit on how many times someone can give, plus the end user must confirm it on their cell phone so no simple errors should be made.

So far, the positives of the youth movement far outweigh a potenital parent's surprises when seeing a $5 or $10 donation on a phone bill, so expect to see the youth continue to be marketed to for mobile donations.

Mobile donations have become more accessible

When the Mobile Giving Foundation (MGF) first began 'mobile giving' the applications were screened for organizations who would generate the biggest campaign success. This was a crucial campaign factor because of the limited manpower at MGF.

Now, smaller campaigns can be hosted by other application providers and can begin collecting mobile donations. There are however certain requirements for a 501c3 non-profit to participate in mobile giving so be sure that your non-profit meets those minimum standards.

SUMOTEXT can quicklly and easily assist any organization in understanding these basic requirements and help any nonprofit through the application process. In addition, Sumotext can also assist with helping to understand how to best utilize their sms platform in order to maximize your expected donor revenue.

Major wireless carriers waive SMS fees for disaster donations

A unique part of mobile donations that contributes to the success of mobile donations is the cooperation between all major wireless carriers during natural disasters. In the wake of a natural disaster, all major wireless carriers waive SMS fees so that the entire donation passes through the carrier directly to the mobile giving foundation, or to the MGF.

When the donation reaches one of these two foundations, they take $.25 of every donation. If the application service providers working with the MGF decide to waive any donation fee, then $9.75 of every $10 donation and $4.75 of every $5 donation goes directly to the charity. It is very unusual for major carriers to waive messaging fees.

When a premium message passes through a carrier, they can take up to 60% of the original charge before the remainder is sent to the application provider. With the assurance that the majority of their donation goes directly to the cause, consumers are more apt to participate in mobile donations.


NPO's should be proactive concerning mobile donations

In the wake of recent natural disasters, organizations are catching on faster and faster to the power of mobile donations.

Unfortunately, many organizations do not realize there is a process and a timeline to get a SMS giving campaigns up and running and are unhappy that the immediacy isn't readily available.

There are several steps a nonprofit has to take to begin a mobile giving campaign.

  1. Establish the foundation meets criteria set forth by the Mobile Giving Foundation.
  2. Select a certified ASP to work through for the Mobile Giving Foundation.
  3. Submit an application to the MGF for approval.
  4. After approval, coordinate mobile giving keywords with a certified ASP.
  5. Keywords are submitted on Fridays for provisioning; it takes approximately 2 to 3 weeks for the keywords to be fully functioning and able to accept donations.
  6. The nonprofit will not receive their first check until 90 days after the first transaction. This ensures that they are receiving funds that have been paid for through the end user’s cell phone bill.

Because there are many steps involved, a proactive non-profit will be ready to use mobile giving BEFORE the actual need arises.

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