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  • Great experience working with you to gain clarity of what needs changing in my business. Stephen Jordan Access to Africa - 25 August 2011, Marketing Module

SMS Fundraising

It is reported that 19 million South African’s use mobile phones for business and entertainment – and there is still potential for growth. The technological revolution and the speed at which new innovations are introduced makes us scramble to keep up. In this fast changing world we, as fundraisers, are missing out if we do not access new technology to generate income streams. Therefore, when someone comes up with an easy way to raise money using new technology, we are tempted, but are we really sure of what we are getting into?

Two new schemes for the use of the Internet and mobile phone technology, as a method of tapping into this huge potential for raising funds, have recently come to my attention. The first promotes a global platform, using SMS text messaging and the Internet to bypass the national telephone service provider, to obtain cheaper international telephone calls. It encourages people to sign up for this service on the understanding that for every call they make they are making a donation towards a named charity. We are told that it is legal. The second scheme is probably more widely known to you. It uses mass media to deliver a campaign with a compelling message that encourages mobile phone users to send a text message, at a call rate that is significantly more than normal rates, usually to win a prize and, at the same time, make a donation to charity.

Kimon Phitidis, MD of Social Innovations, said: “It’s as easy as picking up your phone in the comfort of your living room, and sending an SMS. There is no telephone pledging, giving out credit card numbers, or electronic transfers – the benefit to the charity is that collection by the networks is instant and guaranteed.”

But, is it?

I discussed this new mechanism with several colleagues and the following are just some of the queries and comments raised: The security of the income is guaranteed by the telephone service providers, but how long is the delay between the money being pledged and the charity receiving it? Will this income be held in an interest bearing account for you? Is the amount that goes to the charity transparent? The scheme may be getting your brand name out into the market place, but not bringing in as much income as you anticipated, because partner organisations get paid first. The public may have a false impression that you are a cash rich charity, when in fact you are struggling to meet your bills. What value do you put on your image? Is your brand linked in the right way? We know that it costs money to raise money, but is it fair to your donors who think they are giving more than you get? Is it ethical?

Only you can decide if an SMS appeal can achieve your fundraising goals. Sandra Miller, a member of SAIF and user of SMS fundraising said: “It is up to the charity to make it work. Fundraisers cannot sit back and expect others to do it for them. The technical support is available to you, but you have to punt the service regularly and go out and find the sponsors to make it attractive.”

The key to sustainable funding is building long-term donor relationships. Don’t be satisfied with a ‘quick fix’ nor ‘shoot yourself in the foot’! Sharpen your negotiation skills. Use caution and business sense when negotiating a cause related contract so that you are in a ‘win-win’ situation, especially where the business uses the name of the charity for self-promotion. Read the conditions carefully. For example, do you understand what it means when the contract says: The customer [the charity?] indemnifies [the company name] against any claims resulting from the service. How long will you be locked into the contract?

We are seeing a new trend – for-profit and not-for-profit working more closely together. Business is bringing new skills, but instead of transferring those skills to the charity in a philanthropic way, fundraisers are working hand-in-hand to raise money for business as well as their causes.

Some charities believe that this is money they would not otherwise have, but at what cost?

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  • Great experience working with you to gain clarity of what needs changing in my business. Stephen Jordan Access to Africa - 25 August 2011, Marketing Module

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