Charities Cut the Cord

Mobile phones arguably are today’s most highly personalized consumer electronics devices. From custom skins to ringtones to apps, mobile phones reflect their owners’ preferences and priorities.
For a growing number of consumers, those priorities include using their mobile phones to support charitable causes. In less than two years, mobile giving has rapidly emerged in terms of usage by both consumers and philanthropic organizations.
For example, in 2008, the Mobile Giving Foundation received its 501(c)3 status and quickly established contracts with all major U.S. wireless carriers. Carrier participation is key because they help make mobile giving convenient and user-friendly, such as by enabling SMS-based donations that are automatically added to the user’s phone bill. (Carriers allow 100 percent of each donation to go to the recipient charity, paid through the Mobile Giving Foundation.) In the process, the MGF and carriers serve as trusted partners, helping allay consumer fears about whether their donation will actually make it to their philanthropy of choice.
Today, more than 350 non-profits and more than 400 campaigns support mobile giving. Meanwhile, donation points have expanded from $5 to $10, with $5 gifts alone generating more than $1 million so far. In 2008, the Mobile Giving Foundation helped raise more than $350,000. Despite the difficult economy, 2009 pledges are on track to surpass $2 million.
The Mobile Giving Ecosystem
Mobile giving leverages the rapidly growing number of handsets, wireless carriers and financial institutions that support mobile commerce. This ecosystem has created a framework that both enables mobile giving and makes consumers comfortable with the concept of using their handset for financial transactions.
Mobile giving also leverages mechanisms and strategies from the mobile marketing world, such as short codes and calls to action. For example, philanthropies frequently work with the Mobile Giving Foundation and its approved application service providers (ASPs) to obtain a short code and keyword – such as SHARE – at set donation point, such as $5.
This short code and keyword then can be incorporated with the charitable campaign’s other media, such as print and broadcast ads, or at concerts, making it easy for mobile users to donate immediately after seeing the ad. As in mobile marketing, these calls to action help increase participation because mobile users don’t, for example, have to wait until the next time they’re at a PC to make a donation. The approved ASPs also work directly with each non-profit to develop and execute strategies for initiatives such as promotions and cross-platform integration.
The Mobile Giving Foundation creates a contract with the non-profit so funds can be remitted directly from the MGF to their organization, typically within 60 days, depending on each carrier’s billing cycle. The foundation’s other key roles include:
• Establishing and managing standards for participation of non-profits and charities through an industry-wide, sanctioned committee co-chaired by a carrier and the foundation.
• Ensuring compliance with all laws and regulations governing charitable giving.
• Certifying ASPs.
• Certify charities and their campaigns, helping create confidence for wireless carriers and consumers.
• Researching and publishing metrics and case studies about the effectiveness of mobile giving.
• Educating consumers about mobile giving opportunities.
More to Give, More to Do
The American Red Cross, the Wireless Foundation and companies such as VeriSign/m-Qube are among mobile giving’s pioneers. For example, the Wireless Foundation’s Text2Help program enabled mobile donations of more than $190,000 for relief efforts following Hurricane Katrina.
Despite its initial successes, mobile giving is still in the process of building consumer awareness. For example, Keep a Child Alive put the spotlight on mobile giving during the most recent season of “American Idol.” That exposure was particularly valuable because the show has an enormous audience, one that’s already comfortable using SMS for voting.
The Mobile Giving Foundation and individual philanthropies will spend 2010 looking for more opportunities to expand mainstream awareness of this new option. Other initiatives include providing access to additional network functionality, and expanded donation points, such as going beyond the current $5-$10 points and $30/month maximums.
For years, many analysts, wireless carriers and vendors have predicted that mobile phones eventually will make wallets a relic of the past. If the growing popularity of mobile giving is any guide, that prediction will come true sooner rather than later.
Jim Manis is chairman and CEO of the Mobile Giving Foundation. For more information, visit www.mobilegiving.org.
**Approved MGF ASPs:
a. MobileCause, www.mobilecause.com
b. Mobile Commons, www.mcommons.com
c. Wireless Factory, www.wirelessfactory.com
d. Distributive Networks, www.distributivenetworks.com
e. g8wave Inc, www.g8wave.com
f. Give on the Go, LLC., www.giveonthego.com
g. Give by Cell, www.givebycell.com
h. iLoop Mobile, Inc., www.iloopmobile.com
i. Russ Reid, Inc., www.russreid.com