TEXT 2 DONATEAn Introduction to

SMS Giving

Carrie McBride COM495 November 29, 2010

SMS Statistics

SMS Statistics

Over 65% of cell phone users text message.

SMS Statistics

Over 65% of cell phone users text message.

U.S. consumers sent over 1.5 trillion text messages in 2009.

SMS Statistics

Over 65% of cell phone users text message.

U.S. consumers sent over 1.5 trillion text messages in 2009.

Average consumer now texts more than they talk.

How it worksTEXT 2 DONATE

How it worksFor Donors:

Cell phone user texts a specified word to the NPO’s short code:

i.e., Text the word DONATE to 21600

TEXT 2 DONATE

How it worksFor Donors:

Cell phone user texts a specified word to the NPO’s short code:

i.e., Text the word DONATE to 21600

Within seconds, a text message is sent back confirming the donation.

TEXT 2 DONATE

How it worksFor Donors:

Cell phone user responds YES to confirm donation

TEXT 2 DONATE

How it worksFor Donors:

Cell phone user responds YES to confirm donation

The donation is added to the user’s cell phone bill

TEXT 2 DONATE

How it worksFor Donors:

Cell phone user responds YES to confirm donation

The donation is added to the user’s cell phone bill

Donor receives a Thank You message

TEXT 2 DONATE

How it worksExample from Susan G. Komen for the Cure:

TEXT 2 DONATE

1 2 3

How it worksCell phone carriers:

TEXT 2 DONATE

How it worksCell phone carriers:

Limit users to 5 donations per month

TEXT 2 DONATE

How it worksCell phone carriers:

Limit users to 5 donations per month

TEXT 2 DONATE

Limit the donation amount toeither $5 or $10 per text

How it worksCell phone carriers:

Limit users to 5 donations per month

TEXT 2 DONATE

Limit the donation amount toeither $5 or $10 per text

Testing $25 donations this holiday season

How it worksFor Non-profits:

TEXT 2 DONATE

How it worksFor Non-profits:

Select a mobile giving provider (mGive)

TEXT 2 DONATE

How it worksFor Non-profits:

Select a mobile giving provider (mGive)

Apply to The Mobile Giving Foundation Intermediary between carriers and NPO’s

TEXT 2 DONATE

How it worksFor Non-profits:

Select a mobile giving provider (mGive)

Apply to The Mobile Giving Foundation Intermediary between carriers and NPO’s

Start planning a marketing strategy How will people know they can text 2 donate?

TEXT 2 DONATE

How it works

From mGive:

TEXT 2 DONATE

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

Success StoriesTEXT 2 DONATE

Success StoriesHaiti Earthquake – January 2010

TEXT 2 DONATE

Success StoriesHaiti Earthquake – January 2010

14% of donations were made via text message, according to Pew Research

TEXT 2 DONATE

Success StoriesHaiti Earthquake – January 2010

14% of donations were made via text message, according to Pew Research

American Red Cross alone raised $32 million in text donations

TEXT 2 DONATE

Success StoriesTEXT 2 DONATE

How much does it cost?TEXT 2 DONATE

How much does it cost?

Set-up and application fee - $500

TEXT 2 DONATE

How much does it cost?

Set-up and application fee - $500

Monthly fee ranges from $399 - $1,499 + a per message fee of $.03-.04 Depends on how many outgoing text messages

you wish to send each month

TEXT 2 DONATE

How much does it cost?

Set-up and application fee - $500

Monthly fee ranges from $399 - $1,499 + a per message fee of $.03-.04 Depends on how many outgoing text messages

you wish to send each month

For each donation, mGive and TMF keeps $0.30 - $0.35 + 3.5%

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Donor list = 1,400 people

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Donor list = 1,400 people $649/month service fee

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Donor list = 1,400 people $649/month service fee $0.035 per text message = $49 for one

text message sent to all donors

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Donor list = 1,400 people $649/month service fee $0.035 per text message = $49 for one

text message sent to all donors

For each $10 donation, mGive and TMF would keep $0.67 or 6.7%

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Cost for the year = $9,464

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Cost for the year = $9,464 Equal to 15% of our fundraising budget

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Cost for the year = $9,464 Equal to 15% of our fundraising budget Doesn’t include the cost of marketing

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Cost for the year = $9,464 Equal to 15% of our fundraising budget Doesn’t include the cost of marketing

Would need 1,014 text donations just to break even

TEXT 2 DONATE

How much does it cost?Example for Transitional Resources:

Cost for the year = $9,464 Equal to 15% of our fundraising budget Doesn’t include the cost of marketing

Would need 1,014 text donations just to break even

Not feasible for small NPO’s at this time

TEXT 2 DONATE

Mandelkorn, T., & Manis, J. (2010, May). An Introduction to Mobile Giving [Presentation Slides]. Retrieved from http://ndoa.org

mGive: http://mgive.com/

Mobile Giving Foundation: http://mobilegiving.org/

Red Cross Raises More Than $32 Million via Mobile Giving Program. (2010, Feb 11). American Red Cross. Retrieved from http://redcross.org

Wallace, Nicole. (2010, Nov 5). Two Charities Test $25 Cellphone Contributions. The Chronicle of Philanthropy. Retrieved from: http://philanthropy.com

Resources