The as-yet unnamed service allows users to donate to a charity by texting a keyword to a shortcode number assigned to the charity by Obopay. Users are then directed to a mobile payment site where they can donate and receive electronic tax receipts.
While text donations have previously been the territory of large corporations like the Red Cross, the new service is available to any registered charity in the U.S. It boasts two unique advantages: users can donate as much as they like (previous services were limited to values under $100) and the money is transferred much faster (previous services usually required 90 days to process donations).
Text-to-donate was a critical part of the response to the 2010 Haiti earthquake with the Red Cross and Yele Haiti leading the charge. More than $30 million was donated via text message (14% of all efforts) in just the first 10 days following the quake. Text message donations jumped more than 200% right after the quake than the same period in 2009, according to a study by Blackbaud.
Obopay and Benevity have clearly set their sights on using the service to benefit cause marketing. Donations can be made to individual charities or to "cause portfolios." The service will also be able to support corporate matching of donations by companies and their partners.
Essentially, this means any U.S. non-profit can build a portfolio of causes all tied together by a keyword and shortcode. Benevity typically charges a 7% transaction fee for all charities, meaning that for every dollar you donate, your charity will receive about $0.93.
Do you think text-to-donate strategies are the future of charitable giving or is it a fad that's losing steam? Do you trust companies that ask for mobile donations? Let us know in the comments, and check out the list of causes already signed to the service. You can text the following keywords to 48510 to donate:
PAKISTAN to donate to the Mobilink Foundation in support of relief for victims of the recent flood in Pakistan.
GORILLA to donate to the Conservation Through Public Health in support of efforts to save endangered mountain gorillas in Africa.
KIDS to donate to the Obopay Bay Area Kids Fund to support California Bay Area children’s charities including:
Boys & Girls Clubs of San Francisco
East Palo Alto Kids Foundation
HEALTH to donate to the Obopay Health Fund in support of health and health research efforts including:
American Brain Tumor Association