In 2007, John Edwards began texting for dollars. Starting with text messages sent to over 13,000 supporters, Edwards solicited donations for his political campaign. If the cell phone owner replied to the text, the campaign followed up with a pre-recorded message from Edwards with information detailing how to donate. From there, the sensation evolved, allowing users to donate money by texting a word to a specific number.
Mobile Phone Companies Make SMS Donations Easy
Fundraising through mobile donations utilizes a method of communication known as short message service (SMS). Cell phones use SMS to send text messages, which is why organizations market this fundraising idea as an SMS campaign.
By responding to a text message, a person alerts his or her cell phone provider of the donation. The provider then takes the specified amount and adds it to the individual's phone bill. Most service providers have some type of agreement with the organization for the transfer of funds from donors.
Fundraising campaigns allowing people to automatically donate work off a specified amount. For example, the American Red Cross raised funds to help victims of the earthquake in Haiti by asking them to text 'Haiti' to 90999 to donate $10 to the cause. Other service groups use a $5 donation.
Companies Cash in on SMS Campaign
While many large organizations and companies collect funds with SMS marketing, it's possible for small businesses to use the technology. Providers like mGive require a one year contract and offer a selection of services for a fee. The amount left over after paying any fees or sums owed to the provider go to the organization soliciting the funds.
There are hundreds of companies seeking donations through text messages. Some companies using a directory of mobile phone numbers to ask for donations include the following ones:
- Make a Wish Foundation,
- United Way,
- Children's Miracle Network,
- Red Cross,
- AmberWatch Foundation,
- and American Cancer Society.
Scammers Take Advantage of Mobile Marketing
While legitimate organizations put donations to good use, scammers are aware of the benefits to SMS campaigns. It can be difficult to determine where a text message goes once an individual sends it. While a person may think the donation is going to a legitimate company, it could be going to a fraudulent individual.
To help combat this, companies that provide SMS marketing will sometimes require their users to provide documentation as evidence the funds will benefit an actual charity as opposed to an individual. Reputable organizations can sometimes back the campaign, further reducing the probability of a scam. For example, the U.S. State Department offered its support for the American Red Cross's campaign to raise funds for victims in Haiti.
Learn More about Using Cell Phones for Donations
People who want to learn more about this type of fundraising can visit providers like mGive. It offers information from its pricing to its partners on its website. For an example of a successful campaign, individuals can read about the American Red Cross and its efforts to help the people of Haiti.
Tara McClendon - Tara McClendon is a Texas-based freelance writer and editor. Aside from writing for Suite101, Tara is currently working on a YA novel ...
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