Is Mobile Fundraising the Next Frontier for Charities?

Others, such as the New York Philharmonic, are selling ringtones for use on multimedia phones through their Web sites.

Mobile content is a useful awareness-raising and, to some extent, fundraising tool, but most nonprofits will have a hard time generating the PR or viral buzz to make it worthwhile to develop and provide mobile content, which can be technically challenging.

The times are changing, however, and mobile payment services will become increasingly available — and not just in Japan or Africa, where mobile payments are easy and fast. M-Pesa in Kenya is one of the better known m-payment services that allows mobile pre-paid customers to transfer airtime between phones. In fact, airtime is a de facto currency in an increasing number of countries and, as such, is a potential source of revenue for local NGOs. For example, before leaving a country, tourists could be encouraged to donate what is left of their airtime to a local cause.

In the United States, Obopay allows a user to authorize payment from a pre-paid account via SMS. Similarly, one can imagine authorization via SMS for a credit card on file, especially when the donor’s information is firmly integrated with the NGO’s customer relationship database. With Visa (and already Western Union) entering the mobile space with a vengeance, mobile payments are not far off in the United States.

The most promising way to raise money right now using mobiles probably is the old-fashioned way — by using the voice feature. John Edwards’ presidential campaign, through its vendor Mobile Commons, sent everyone on its mobile list (those individuals who had opted in to receive text messages by signing up at events or on Edwards’ Web site) an SMS asking participants to listen to a special message from Elizabeth Edwards. Those that made the call (15 percent of recipients on the mobile opt-in list) then were directed to press “1” to be connected to an operator to make a donation. About 10 percent of those 15 percent did — with an average donation of $120.