The wireless industry deserves a giant "Thank you!" Because in a time of corporate corruption, it has done something totally selfless. The wireless industry has taken a mobile application that was supposed to MAKE money for wireless operators and turned it into a tool for the greater social good – one that has been used to raise more than $50 million for those in need.
What am I talking about? Mobile donations, of course. There has been a lot of misinformation floating around lately regarding mobile donations. So today I want to set record straight by dispelling a few common myths about text-based mobile donations.
Myth #1
Reports have indicated that mobile donations were not as effective in raising money for Japan earthquake and tsunami victims as they were for the earthquake victims in Haiti.
The reality is that total donations collected for Japan victims was less across the board, no matter whether donations were made via mail, online or via mobile phones. According to media reports, four days into the Japan crisis, victims had received about $25 million in donations versus more than $150 million in donations for Haiti in the first four days after the crisis.
Therefore, it's no surprise that mobile donations were lower for Japan victims in those first few days as well – $2 million versus $12.5 million for victims in Haiti. But here's the interesting thing: The percentage of funds raised by mobile donations remained virtually constant when compared to the total funds raised. Mobile donations accounted for 8 percent of the total donations made to Japan and 8.3 percent of total donations raised for Haiti.
That means that thanks to mobile donations, more than $12.5 million was raised for Haiti victims that otherwise would not have been donated, and nearly $2 million in additional funds were raised for Japan.
Myth #2
And that brings me to the second myth, which is the belief that the $10 donation limits on mobile donations significantly cannibalizes larger donations that might be made using other channels. That's just not true. In fact, a survey commissioned by The mGive Foundation found that 80 percent of survey respondents who were regular online and/or direct mail donors indicated that donating money via text would not preclude them from giving a larger amount via alternative channels such web sites, direct mail or in response to email campaigns.
The beauty of mobile donations is that they can be made on the spot, as soon as a potential donor reads a story about the disaster or sees coverage of the disaster on television. Or when the potential donor sees a call to action while watching "American Idol."
By their very nature, mobile donations harness the power of "impulse giving." The large majority of donations collected via mobile simply would not have been made if this channel did not exist.
Myth #3
So finally, I want to address the third myth, which is the belief that mobile donations are just a fad that will pass. Mobile donations are already a vital part of the fundraising efforts of many nonprofits and will only continue to grow in importance. In fact, putting any new constraints on mobile donation campaigns could actually devastate many of the charity programs supported by several global nonprofit organizations.
In the past few years, as businesses tightened their belts and corporate donations to nonprofits suffered, many nonprofits have turned to mobile donations as a means to fill the funding gap. For example, one worldwide healthcare organization was contemplating shutting its doors for good until a prime-time mobile donation event saved the charity. Thanks to mobile donations, this organization is thriving today.
Why have mobile donations been such an effective fundraising channel for nonprofits? In large part, it is because wireless carriers have made it relatively easy, quick and cost-effective for nonprofits to take advantage of this fundraising channel.
In fact, mobile donations are already growing much faster than alternative donation channels have in the past. For example, when online donations were in their second year in 1998, $350,000 was raised through the channel. In 2009, during the second year of mobile donations, more than $1.5 million in funds were raised. In 1999, the third anniversary of the advent of online giving, $1.1 million in funds were raised. Compare this to the jaw-dropping $42 million raised via mobile donations in 2010, the third year after donations could be made via mobile phones, and you can clearly see how quickly mobile donations are growing.
The Bottom Line
The bottom line is this: Text-based mobile donation campaigns are effective. They bring in new donors who would not otherwise give any money at all. They can help nonprofits raise money in tight markets. And mobile donations are a great way for the wireless industry to give back.
So those of you who have helped make mobile donations possible should give yourselves a giant pat on the back – and congratulate yourselves on a job well done. Please keep making it easy for nonprofits to raise money through mobile donations. And make sure that your customers know about the good work your company is doing in this area.
Jenifer Snyder is Executive Director of The mGive Foundation (www.mgive.org).