A Test of Bigger Gifts to Charity via Text Message

Four nonprofit groups are trying to attract $25 gifts through text messages this holiday season, an experiment that may increase the popularity of giving via mobile phones among charities.

One of the biggest limitations of such giving, which burst onto the scene earlier this year when nonprofits raised tens of millions of dollars through text-to-give programs after the Haitian earthquake, has been the small size of the donations charities could solicit, just $5 or $10.

The American Red Cross is one of the four nonprofits participating in the test of $25 gifts that is being conducted by the Mobile Giving Foundation and Mobile Accord, two of the largest providers of text-to-give services for nonprofits.

The Mobile Giving Foundation is also testing $25 gifts with two other nonprofit groups that it has declined to name.

Jim Manis, chief executive of the Mobile Giving Foundation, said the experiments will aim to determine not only whether consumers will respond to high-dollar-value solicitations to give through their phones, but also whether those larger gifts produce heavier burdens on mobile carriers, like more demands for customer service or refunds.

“It’s a trial, not a commercial implementation,” Mr. Manis said. “This will be newsworthy when we can make an announcement about the results of those tests.”

The Red Cross raised more than $30 million with its text-based giving program for Haiti. “Over three million people made a $10 donation via text to help the people of Haiti last January,” said Peggy Dyer, the organization’s chief marketing officer. “We are now asking them to help the work of the American Red Cross down the street, across the country and around the world by making a holiday gift of $25 by text.”

The Red Cross is working with the mGive Foundation, the philanthropic arm of Mobile Accord, as is the American Center for Law and Justice, which works to protect freedom of speech and religion.

“We need to understand whether $25 is the ideal donation limit for mobile campaigns,” said Jenifer Snyder, executive director of the mGive Foundation. “At the end of the year, we should better understand how the higher donation amount impacts charities, donors and wireless carriers.”

via bits.blogs.nytimes.com

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