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Introduction to SMS Giving - How Donations by Text Work
- 1. An Introduction to SMS Giving Carrie McBride COM495 November 29, 2010
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- 21. User makes a donation by sending a text message from their cell phone Non-taxable donation added to user’s cell phone bill The Mobile Giving Foundation collects donations from each carrier Proceeds wired directly to NPO in 90 days
- 41. Red Cross Raises More Than $32 Million via Mobile Giving Program. (2010, Feb 11). American Red Cross. Retrieved from http://redcross.org http://philanthropy.com
Editor's Notes
- Image: http://www.coneinc.com/contentmgr/showdetails.php/id/1224/view_type/950060/tagid/94 Hi everyone, my name is Carrie and today I’m going to talk about donations via text message or Text 2 Donate. I work in the non-profit sector, and many people are saying that this is the future of fundraising, so I wanted to find out more about it.
- So, first I just want to give you a few statistics about text messaging…
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- <Read slide> This was a 50% increase over the previous year.
- <Read slide> This is true of cell phone users in the age 13-44 demographic.
- How many of you have done this before? So, a little about how Text 2 Donate works…
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- <Read slide> This message usually also contains an “opt-in” option if you want to get more messages from the NPO in the future. Estimates are that approximately 5% of text donors opt-in.
- Image: http://ww5.komen.org/uploadedImages/Content_Images/text%20to%20donate%20graphic.jpg Here’s an example of the instructions found on Susan G Komen’s website on how to Text 2 Donate <Read slide>
- Now, cell phone carriers also have a say in how Text 2 donate works….
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- <Read slide> The rules limit the liability for cell phone companies – people can and do ask for refunds and sometimes don’t pay their bills. This happens less than 1% of the time though, so…
- According to the Chronicle of Philanthropy, two charities will be testing a $25 text donation coming up this holiday season – if this works out, cell phone carriers may allow a new level of giving. Source: http://philanthropy.com/blogs/prospecting/two-charities-test-25-cellphone-contributions/27837
- Now, here’s how it works for non-profits…
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- <Read slide> Between these two steps, it can take anywhere from 2 – 8 weeks to set up an account, so in the meantime…
- You should <Read slide> The most successful Text 2 donate campaigns are fairly aggressive in their marketing.
- Here’s a diagram of how it works from mGive…<Read slide>
- Success Stories – the most successful is obviously the Text 2 Donate campaign or Haiti.
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- Here’s just a few of the other non-profits that are currently using Text 2 Donate…Pretty much, whatever your pet cause is, it’s likely that they now accept donations via text message.
- Since Text 2 Donate has been so successful for these non-profits, I wanted to find out how much it costs – what are non-profits paying in order to offer this service to their donors…
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- The non-profit I work for is Transitional Resources – we’re a small mental health agency in West Seattle. I wanted to find out how much it would cost us to implement Text 2 Donate as part of our fundraising plan, so I did a few calculations…
- Our donor list is around 1400 people, which puts us in the Silver cost category at mGive
- That means our monthly fee would be $649
- For every text we send to our donors, it would cost us $49
- For every $10 donation to our agency, mGive and the Mobile Giving Foundation would keep 67 cents – so we would end up with $9.33.
- If we sent 2 text messages to our donors each month (to keep in touch and solicit more donations), the cost for the 1st year would be 9,464
- That’s about 15% off our current fundraising budget
- Of course, that doesn’t include the cost of marketing the availability of Text 2 Donate – Again, in order to be successful, we’d have to market it fairly aggressively, so there would definitely be additional costs involved.
- Even without the cost of marketing, our agency would have to receive 1,014 text donations of $10 each – JUST TO BREAK EVEN!
- At the end of the day, the costs of Text 2 Donate are too high or a small agency like ours. It’s clear that it works for larger non-profits, especially those that provide emergency assistance or have a nationwide donor base. But for now, grassroots agencies like ours are out of luck until this technology becomes more affordable…
- At the end of the day, the costs of Text 2 Donate are too high or a small agency like ours. It’s clear that it works for larger non-profits, especially those that provide emergency assistance or have a nationwide donor base. But for now, grassroots agencies like ours are out of luck until this technology becomes more affordable…