Manage finances
From Shareideas
How might mobile communications be useful to your organization in fundraising or conducting monetary transactions? See the examples below:
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Where can it help?
Fundraise for your cause
Nongovernmental organizations (NGOs) have been using mobile phones to fundraise for their causes with varying degrees of success. Some of the best-known examples involve SMS campaigns that have arisen in conjunction with humanitarian relief efforts. In the aftermath of Hurricane Katrina in the United States, for instance, the American Red Cross teamed up with wireless carriers in making it possible for subscribers to various mobile services to make a US$5 donation by SMS-ing the keyword “GIVE” to a designated number. The amount was deducted from the subscriber’s next bill.
Some NGOs have tied mobile phone giving to special events. For the past five years, the Educational Volunteers Foundation of Turkey (TEGV), for example, has held an SMS fundraising campaign in conjunction with a national holiday celebrating children. TEGV partnered with the country’s three mobile phone operators who agreed to waive their usual fees. A four-digit number was established that people could send an SMS donation to. The number was promoted via a TV special and other media. In 2007 alone, more than 78,400 people made SMS contributions totaling over US$575,000.
Special events also include large concerts or telethons that promote causes and ways people can contribute via SMS.
Fundraising that is tied to merchandising has also proven successful, particularly for well-known NGOs with popular causes. Take for example, the Wildlive! campaign sponsored by Fauna-Flora International (FFI), Vodafone UK, and the Vodafone Group Foundation in 2003-2004. As part the campaign, VodafoneLive! customers could pay to download animal screensavers, animal ringtones, and conservation-based games, with 100 percent of profits going to FFI. In 2004, Wildlive! raised over £100,000 as part of FFI’s centennial celebration.
Despite these successes and others, mobile phone fundraising is still far from a ‘tried and true’ method of generating resources for nonprofit causes. Setting up mobile fundraising campaigns can be expensive and time-consuming, with costs and regulations varying from country to country.
What factors are important to consider in developing an SMS-based fundraising campaign?
- Develop systems for collecting mobile phone numbers from potential donors. Nonprofits with established memberships, that host events, or that regularly fundraise via the web or direct mail, should get in the habit of collecting mobile numbers from individuals interested in their cause. Be aware, however, that regulations exist in some countries regarding how long such information can be used given the rate at which mobile owners change handsets/phone numbers.
- Be mindful of the costs of sending and receiving messages. Sending bulk messages can drive up costs fast. That said, mobile carriers have been known to waive their fees for the right cause. Be wary of sending multiple messages to people who must pay a fee for receiving them. You can easily alienate your audience.
- Research the rules and regulations governing SMS campaigning where you operate. You will need to be aware of any restrictions and obtain necessary approvals.
- Explore options for processing financial transactions. To promote and implement SMS fundraising campaigns, many charities acquire a ‘short code,’ a four or five digit number that people can transmit a message to. The process for acquiring/purchasing a short code differs from country to country. Some companies have established services that enable people to transfer funds and make donations via mobile. A number of charities have successfully negotiated with mobile carriers to waive their fees, with donations appearing on the mobile subscriber's bill. One way to avoid having to set up systems for receiving donations via mobile phone is to ask people to pledge a certain amount of support via SMS and then follow up with a phone call.
- Make sure your fundraising request is straightforward and simple. Reinforce your message via multiple communications vehicles – via the web, print materials, advertising, the news media, etc.
- Follow up with supporters. Thank those that donate to your cause and report back to them on the results they helped to achieve. Update them on a periodic basis about your work and, if appropriate, make a follow up request for support. Fundraising should be considered part of broader mobile strategy designed to build awareness and motivate people to take action.
Case studies
Resources
MobileActive, a global network of activists and campaigners using mobile phones for civic action and engagement, has published a Strategy Guide on “Using Mobile Phones in Fundraising Campaigns.” You can download the guide at: http://www.mobileactive.org/guides.
Conduct monetary transactions
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Commercialize a ringtone for fundraising
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