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Mobile Giving- The Next Dynamic in Fundraising?
If you’re up on giving trends as a nonprofit organization that raises funds from many sources, you have probably heard about the impact of mobile giving and have asked yourself the some of the following questions: Is Mobile Giving right for my organization? How can I tell if it is and what do I need to do to get ready? What will it cost and how long does it take to set it up and start the flow of funds? The following article will answer these questions and others.
First, let’s put the potential of mobile giving in perspective. According to the a watchdog organization founded in 2007 (MGF) to ensure that legitimate companies are involved in mobile fundraising and funds are reaching the right people most efficiently, there are over 280 million subscribers to wireless devices in the US today. There has been an exponential rise of text messaging (used by 68% of 18-24 year olds; 37% of 35-44 year olds; and 14% of those over 65). One way to look at mobile giving is to compare it to the Internet: In 1990 the Internet was using telephone dial up to access the internet (remember AOL at the 9700 baud rate?). And it wasn’t until 1999 that someone first came up with the idea of putting a ‘donate’ button on their website. Compare that to today’s outrageously fast speeds for Internet services and the use of your website for giving, and you’ll get some idea where the industry is now and where it is going. There are over 400 major national charitable organizations registered currently to launch more than 800 mobile giving programs at either various price levels, from $5 and $10 gifts charged to the subscriber’s phone bill to thousands of dollars requiring credit call verification. Mobile giving often outpaces on-line donor acquisition by a 3:1 factor, according to a foundation source.
Is mobile giving right for your organization?
Yes and No are two quick but accurate answers. The Yes involves you and your organization. Here are a couple of questions to answer for your organization (described more fully by Sarah Durham in her new book, “Brandraising.”)
- Do you communicate regularly with your constituents and have a program in place for reaching out to new people?
- Do you have someone, ideally a professional, in your organization dedicated to communication with your constituents?
- Are you involved in social networking sites like: Linkedin; Twitter; Facebook, blogs, and do you have a well maintained website?
- Have you developed an organized, computerized database of your donors including their email addresses and cell phone numbers?
- Do you sponsor events that attract large numbers of people?
If you can answer yes to these questions, you’re probably ready to consider mobile giving as another tool in your arsenal.
If not, take a look at the above and get started initiating these ideas.
Before you can even think about mobile giving or asking for money via text messaging, you have to do a couple of things that give you the right to ask:
- Your organization be a recognized IRS 501 (c) (3) organization; Note: Other types of 501 (c) 4-5-6 organization do qualify for mobile giving programs but only 501 (c) 3 organizations qualify for $5 and $10 gifts via cell phones.
- Your organization must be registered by the state’s Bureau of Charities if you are considered a nonprofit charitable organization;
- You must have “opt in” and “opt out” provisions in place for text donations. This involves someone who is currently on your donor list or communications list (newsletters, email alerts, etc.), and you have a ‘relationship’ to give you permission to contact them via a text message. This is an important step and can be quite simple to complete.
How long it takes you to get the funds flowing in your direction is up to you.
If you put effort into it, it will happen quickly. Remember, mobile giving is just one way to communicate with your constituency and by constituency, it is someone you have a relationship with currently or want to develop a relationship with in the future. It doesn’t replace what you’re already doing. It is an addition and helps find new sources for the donations to your organization because of the increased use of mobile smart phones.
What will it cost?
You’ve heard the success stories of how much of the millions raised for Haiti Relief was raised via micro text messaging donations (over $30 million according to MSNBC.com) and how the earthquake Chile Relief Fund has raised millions in $5 and $10 donations. The key is that unlike other forms of giving, this is spontaneous and easy to do. Almost everyone carries their cell phone with them today and can react to messages and requests immediately. During the 2008 Super Bowl in Arizona, the United Way aired a 10-second spot that encouraged donors to make a $5 contribution to the United Way via their cell phones. Over 2,000 donors responded immediately! The $5 donation was charged to the person’s cell phone bill. Companies that administer mobile giving usually charge a monthly fee plus a transaction fee for handling the giving. “Apps” or Smart Phone Applications are available for downloading to smart phones that can help the donor access charities.
There are Webinars available that outline the many uses of mobile giving For example, mobile giving can be used to poll your membership or groups of people, ask for larger gifts (more than $10) using the Text2Donate feature, to make ‘calls to action’ for opinions on issues that are important to the organization (political action committees for example) plus much more. For example, The Philadelphia Free Library uses texting for quick answers to many questions that they get on a daily basis. Mobile giving is on the horizon and coming quickly to nonprofit giving. Are you ready for it?
Bill Lapitsky is an Associate with Chandler Associates, a PANO member and full service fund raising and consulting company. For more information and to schedule a Webinar for your organization plus any questions, call Bill Lapitsky or text him on his cell phone: 717-215-1190 or email: William@chandlerfornonprofits.com or go to www.mobilegive.us for a complete description of a company that can get you started and describe your giving options.