By David Farnes, Executive Director, Mobile Giving Foundation Canada, and Vice President, Canadian Wireless Telecommunications Association and Jim Manis, Chairman and CEO, Mobile Giving Foundation

Early last year, mobile giving evolved from an emerging technology to mainstream awareness with Haiti earthquake relief, raising approximately $45 million for victims of that natural disaster. Since that time, other disaster relief efforts such as the Gulf oil spill, Japan disaster, and tornado relief in the Southeast U.S. have further validated the effectiveness of text-to-give fundraising.

With that awareness came a further evolution as the question for charities everywhere regarding mobile giving transitioned from "if or when" to "how".

This year, in unprecedented numbers, more charities and corporate foundations have operationalized text‑to‑give fundraising for everyday use, versus only for emergency or disaster relief.

Despite the continued growth of the medium and tens of millions of dollars raised for North American nonprofit organizations, very little research has been performed on consumer attitudes toward mobile giving. For this reason, the Canadian Wireless Telecommunications Association (CWTA) commissioned primary research to survey consumers about text-to-give fundraising for the benefit of the Mobile Giving Foundation Canada and charities that use mobile giving.

Research firm Quorus Consulting Group polled 2,003 teens and adults in April 2011. The results of the survey were very encouraging for the current and future state of mobile giving.

First, 50 percent of respondents were aware of mobile giving, and six percent of those surveyed had performed a donation via their mobile phone at some point. Drilling deeper, 60 percent of respondents aged 18-34 were aware of mobile giving, and 12 percent had made a text-to-give donation. The high numbers of respondents who are aware of mobile giving highlight that text-to-give fundraising has reached "critical mass" with consumers.

Smartphone users outpaced feature phone users 59 to 46 percent in terms of awareness. Ten percent of smartphone users made a text-to-give donation versus three percent of feature phone users. Given the fast growth of smartphone adoption across all consumer segments, these numbers portend continued growth for mobile giving.

Channel of Influence

Regarding which "channel of influence" most influences mobile giving, among the six percent of respondents who made a text-to-give donation, more than two-thirds (68 percent) were prompted by a newscast or radio mention. The top channels included "read about the campaign in a newspaper or magazine" (23 percent); "an appeal from a friend through social media" (23 percent); "at a live event (i.e., sporting event or concert)" (12 percent); and "an appeal from a celebrity" (nine percent).

Perhaps the most important observation based on these numbers, charities must support their text‑to‑give campaigns with cross-channel marketing activities that include television, radio, print media, events, and viral, word-of-mouth promotions. These activities drive greater response to a charity's call to action to donate.

Donation Thresholds

Currently, mobile giving occurs in $5 or $10 increments. However, other dollar amounts are possible. To measure the threshold of mobile donations, survey respondents were asked how much they are willing to give via mobile, and the numbers are compelling:

• 98 percent were willing to donate "$5 or more"
• 89 percent said "$10 or more"
• 76 percent stated "$15 or more"
• 75 percent chose "$20 or more"
• 47 percent for "$25 or more"; 36 percent for "$30 or more"; 34 percent for "$40 or more"; 32 percent for "$50 or more"; and 18 percent for "$60 or more"

Regarding alternate price points for mobile donations, the research suggests that there is negligible donor erosion between the $15 and $20 levels, thus charities should forego the former and opt for the latter.

On average, donors would contribute up to $23 using mobile giving.

There is low donor erosion between the $25 and $50 price points, therefore the higher dollar value should be considered for text-to-give campaigns.

Ongoing Engagement

A fundamental tenant of mobile giving is that it should lead to deeper donor engagement. Survey respondents were asked what types of follow-up communications that they would prefer to receive after a text-to-give donation. Four out of five respondents (81 percent) stated that they were interested in receiving ongoing communications. Looking deeper into the numbers:

• 59 percent wanted a "report on how donations are being put to use"
• 52 percent wanted "directions/reminders to obtain a receipt" for a donation
• 48 percent were interested in a "tally of funds raised"
• 28 percent were open to "regular email updates from the charity"
• 25 percent were open to "short, text message reminders about new calls to action"
• 16 percent were interested in an "option to subscribe to a monthly donation plan"

Two of these figures seem to jump out. The high number of respondents who indicated that they would like a report on how donations are put to use represents a significant opportunity for charities to engage their donors with positive news about accomplishments and enlist their help in furthering the cause.

The 16 percent that wanted an option to subscribe to a monthly donation plan clearly offers an opportunity to build a reoccurring revenue stream through the mobile channel.

Conclusion

What do these numbers mean? Consumer awareness of mobile giving has reached a "tipping point" for the medium that is undeniable. Charities must market their text-to-give campaigns to increase the likelihood of positive outcomes. There is room for growth in terms of dollars amounts that mobile giving can generate for charities. Lastly, charities must regard mobile giving as a first step toward deeper donor engagement and eventual activation.

Based on these numbers, there is no evidence to support the premise that mobile giving detracts donors from making donations through traditional fundraising channels, such as credit-card payment online or mailed checks.

Since the majority of mobile donations come from first-time donors that use their mobile device as a means to contribute to the causes they support, mobile giving augments rather than cannibalizes traditional forms of fundraising.

Given the level of consumer awareness and receptivity to mobile giving, it is apparent that more work can be done to educate mobile phone users about how the text-to-give channel for donating works. To reach this new base of donors, charities with the means to effectively promote and harness this channel should incorporate text-to-give fundraising into their existing fund development plans.

To learn more about the benefits of text-to-give fundraising, visit www.mobilegiving.org (U.S.) or www.mobilegiving.ca (Canada) today.

Author: David Farnes, Executive Director, Mobile Giving Foundation Canada, and Vice President, Canadian Wireless Telecommunications Association (CWTA), and Jim Manis, Chairman and CEO, Mobile Giving Foundation (MGF).

David Farnes is Vice President, Industry and Regulatory Affairs, at the Canadian Wireless Telecommunications Association (CWTA), the authority on wireless issues, developments and trends in Canada. Mr. Farnes also serves as Executive Director of the Mobile Giving Foundation – Canada, the first mobile giving platform for Canadian wireless operators that brought mobile philanthropy to Canada.

Jim has over 25 years of experience in developing international markets for technology based companies, advocating the advancement of wireless technology and promoting the mobile Internet on a global scale. He has been a primary leader in developing the mobile channel for the direct to consumer business and its use for interaction between brand and consumer. Jim was responsible for the first use of mobile giving in response to relief efforts for the Asian tsunami and Katrina as SVP of m-Qube, Inc. Jim founded the Mobile Giving Foundation in the 4th quarter of 2007 with the support of other leaders from the wireless and non profit communities to pioneer the use of the mobile channel for charitable giving.