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May 15, 2008

Raising Money by Cellphone: The Next Big Thing

Raising money with text messaging and cell phones will expand greatly in the United States soon, according to M. Sue Woodward, senior vice president of Virilion, a Washington consulting firm that helps charities use new technology to raise money.

Ms. Woodward spoke this week at the annual meeting of the Association Foundation Group, an organization representing charitable foundations affiliated with professional societies.

Cell phones are a good way to reach potential donors because people always carry them, noted Ms. Woodward.

But until recently, raising money through mobile text messaging has not been possible, because cell-phone carriers charged as much as 50 percent of money donated via text message. That fee covers the cost of charging cell-phone customers for any donation on their monthly bill.

That’s all beginning to change, said Ms. Woodward, pointing to the Mobile Giving Foundation, a new Bellevue, Wash., charity that is working with cell-phone companies to reduce the cost of text-message donations to 10 percent or less.

The foundation’s first text-message fund-raising campaign was held in February, when it placed a 10-second advertisement on television during the Super Bowl. Tom Brady of the New England Patriots asked viewers to text “FIT to 864833” to make a $5 donation to support a youth fitness program started by United Way of America. Of the $5 donation, at least $4.50 ultimately reached United Way.

United Way officials said they received about $10,000 in text-message donations made during the Super Bowl, and contributions have continued to trickle in as sports stations continue to broadcast the 10-second ad.

— Holly Hall

Thursday May 15, 2008 | Permalink

Comments

1. Thoughts about how this campaign worked and how to optimize future mobile giving campaigns

   — Dale Larson    May 19, 05:35 PM    #

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