Do good in the world with SMS donation service

15th March 2016

In the globalization age, we often place the blame for pollution, inflation and consumerising the world on big companies and organizations.

However, sometimes we forget the positive impact they can have when they decide to use their impact for the greater good, like to collect donations for a good cause. Lives of numerous helpless children have been saved and made better with money raised at influential companies’ fundraising events.

SMS as the primary donations channel

Many non-profit organizations, educational institutions, social activists and environmental groups choose SMS as their primary donation channel, because it allows fundraising faster than any other traditional donation method. According to a UK phone-paid services regulator PhonepayPlus, giving to charity by sending an SMS message has grown by 6% in the year 2015/16.

These statistics are not surprising if you consider the fact that everybody owns a mobile phone, but not everyone can access the Internet from it – and hardly everyone has got a smartphone. SMS is the perfect channel for fundraising because donations can be made from any mobile phone.

SMS donations have proven to be popular method among diverse range of demographic groups. According to a recent study from mGive conducted in 2014, the results are as follows:

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Source: mGive

It is the simplicity of the donation process that makes the difference between (mere) good intentions and money in the bank.

And the infrastructural problem isn’t the main one. Traditional ways of donating take time, and nowadays people are always rushing from one place to another. That’s why they choose simpler ways to donate to a cause, event or organization. It is the simplicity of the donation process that makes the difference between (mere) good intentions and money in the bank.

With SMS fundraising, a donation can be made by simply texting a selected keyword to a specified short number – completed in seconds, anywhere and whenever is convenient for the donator.
Here’s brief illustration of typical SMS donation flow from end-user standpoint:

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SMS donation flow

We believe that transparency is essential for a successful fundraiser completion. Donators are more prone to giving if you describe in detail how much you need, which purpose you will use the donations for, and if you tell your donors about the impact their donation has had.

The theory of fundraising

When a non-profit organization wants to collect donations, they need two things: a service provider which will set the donation service up and take care of the technical aspects of the fundraiser,  and a mobile network operator to take care of SMS messages sending. So the first step is to contact mobile operators; inform them about your intention to organize a fundraiser, give details about their fundraiser, explain the cause and details and provide proof that they are really non-profit. We are happy to take care of all these steps for our clients.

Donators are more prone to giving if you describe in detail how much you need, which purpose you will use the donations for.

During this step, it is also important that the non-profit organization declares that they are in no way related to MoCoPay, apart from the fact that MoCoPay provides the technical part of the fundraiser and forwards the profit back to the organization. In other words, the organization needs to prove to mobile operators that MoCoPay will not make profit from the collected donations.

How to conduct a successful fundraiser

Usually, these are the steps in organizing a fundraiser. A non-profit group pays a one-time service set-up fee and a 24/7 service monitoring fee if one is required, just to make sure the service is up and running at all times. Once the service is set up, donators can send SMS messages containing donation keyword to the donation short code number. A keyword can signify the exact donation a mount, or the donator can indicate the total of their donation by writing the amount next to the keyword, eg. keyword5 or keyword10.

As a service provider, we take a great deal of pride in the fact that we don’t retain any of the profit raised by the non-profit organization.

From all the donations raised, mobile operators will keep a small infrastructure usage fee (let’s say 5% for illustration purposes) and forward the remaining 95% of donations to the service provider.

As a service provider, we take a great deal of pride in the fact that we don’t retain any of the profit raised by the non-profit organization. From the total amount mobile operators pay us, we forward 100% of all donations raised to you. That’s correct! We do this transaction completely free of charge for the non-profit organization. It’s the least we can do to help you help those who need it most.