This is my second post based on information gleaned from a recent Common Knowledge webinar on nonprofit communications trends for 2011. This time the topic is mobile giving.
Many believe that mobile giving reached a tipping point with response to the Haiti crisis last year. This year, it may be poised to grow even more. Nonprofits should think about how they can leverage quickly evolving mobile giving options in their fund raising to make it easier for supporters to donate. But remember, there are strengths and weaknesses with each option.
Make a habit of reading nonprofit tech blogs to keep up to speed with mobile technology. There’s also a Linkedin group: Mobile Technology for Nonprofit Organizations—a good place to ask questions.
The 4 big trends predicted are—
Text to give goes mainstream
Text to give—texting on a smart phone to pledge money to a nonprofit and paying for that donation as part of your mobile carrier’s phone bill—has definitely gained traction. It’s convenient because it alleviates having to enter credit card information on your phone. Last year, by the weekend after the earthquake, the American Red Cross had raised more than $10 million for Haiti relief through its text-to-give campaign. The limitation right now is that text to give pledges can’t exceed $10-$20 each. That has the potential to cannibalize larger gifts. There are other challenges nonprofits need to consider before adopting text to give, as captured in this Mashable post.
Apps and mobile support credit card giving
Kind of cumbersome on a tiny screen, but the option to type your credit card number into your phone and give securely is getting more prevalent on nonprofit websites and apps. One advantage is that your donation reaches the nonprofit significantly sooner than it would through text-to-give, where the mobile carrier is an intermediary.
Another development related to this is the popularization of QR codes (quick response) on mobile devices. You can create these codes free at several sites online (just search for create free qr codes). These are little square bar codes that can immediately link to a url (for example your Facebook page or a donation form), send a text message, or dial a phone number when you scan them with your phone. Just be aware all links should be to mobile friendly pages. Here’s a great post from Nonprofit Tech 2.0 on 22 creative ways nonprofits can use QR codes. (Update–there’s now research from consumer marketers saying that QR codes are too labor intensive for the vast majority of people. Few really use them.)
Facebook introduced the concept of its own virtual currency—Facebook credits—last April. They allowed people to buy from $1-$100 worth of these credits to give to their friends for great status updates. This was the first small step toward a more widespread use of this kind of virtual currency by Facebook. Later in the year, two charities accept donations using Facebook credits for their fund raising campaigns. Recently, Facebook made credits mandatory for any gaming transactions. It’s pretty clear that at some point in the near future, Facebook will expand credits throughout the Facebook system (maybe even beyond!). In that case, people may be using credits instead of dollars to donate to a nonprofit through Facebook. (Are you ready?)
The advantage to Facebook is that it will take 30% off the top of many transaction fees. And to keep as much money as possible inside the Facebook system, they’ll also give better terms for trading credits for Facebook advertising than for cash outs. But, at some point, Facebook may also give nonprofits a break on transaction fees. Stay tuned.
Paypal Mobile Express Checkout continues to grow
Just launched last summer, Paypal’s Mobile Express Checkout is in the news because of Starbuck’s new app that lets customers pay by having a QR code on their phone swiped, which uses PayPal’s Mobile Express Checkout. It’s a convenient, safe way to make mobile financial transactions, but it’s not yet clear that the people who support and contribute to nonprofits are the segment of the population with Paypal accounts. Maybe that will change.
Smart mobile devices are an increasingly important platform for interaction with your supporters. Think about ways you can leverage this medium more effectively for fund raising. But don’t just jump on the bandwagon—do your cost/benefit research and make sure whatever option you choose supports your brand and your fund raising strategies. Here’s a good post (from MediaPost) to get you thinking about mobile strategy!
CC photo credit: closari