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Gifts on the Go
The Emergence of Mobile Philanthropy

BlackBerry.  iPhone.  Android.  Mobile computers, or “Smart Phones” as they are often dubbed, have become increasingly popular as consumers young and old have eagerly welcomed the ability to access the internet, check e-mail, and get directions all from the palms of their hands.  The adoption of mobile devices has skyrocketed, along with new applications designed to manage daily activities such as checking bank account balances, making dinner reservations, and even finding the retail store with the lowest advertised price for a new camera; while testing the same camera in a competitor’s store. 

As the prevalence and power of Smart Phones has increased, many philanthropic organizations have begun to engage prospective donors through mobile technology.  Mobile technology provides prospective donors with opportunities to donate anywhere, anytime.  This technology is particularly appealing for museums, libraries, and performing arts organizations where an individual can make a gift while experiencing the organization’s services. 

Mobile philanthropy also removes the requirement of having cash on hand to make a gift.  The Salvation Army provided a recent example of this new approach by asking donors to send a text message, based on the location, to a designated SMS (Short Message Service) number to make a five dollar donation through the donor’s monthly cellular telephone bill.* 

However, non-profit organizations seeking to utilize mobile philanthropy still face several hurdles in implementing this approach:

  • Processing Fees Early adopters of mobile philanthropy have incurred processing fees of up to 50% from wireless carriers.  While many donors who choose mobile technology for their annual giving are likely to be new donors, high fees can reduce the value of renewal gifts from existing donors. 

  • Accuracy Mobile philanthropy, especially text message philanthropy, requires donors to enter specific numbers and messages in order to generate a gift.  Early adopters who have entered into this market have lost significant amounts of gifts due to both incorrect donation information on outbound marketing materials as well as user error when entering gifts.
  • Data Security Mobile philanthropy offers unprecedented access to individual donors through mobile phones.  However, donors who make gifts also provide private contact information when making their gift.  Organizations offering a mobile giving option must be able to capture and manage private donor information in a cost-effective, secure manner.

  • The Mobile Giving Foundation, founded in 2006, has begun to standardize many of the challenges faced with this new medium.  With more than 75% of U.S. consumers owning a mobile phone, mobile philanthropy will continue to be an attractive new approach for engaging donors at an individual level.∇

    Waller Financial Planning Group is committed to helping to build the philanthropic legacies of its clients.  The firm continually seeks new and innovative ways to help client-supported philanthropic organizations thrive.  The firm also celebrates its clients’ contributions to the community through the annual Odysseus Awards. For help in choosing the legacy option that is right for you, or for more information on Waller Financial’s commitment to philanthropy, contact us at 614.457.7026.

    Investing in mutual funds involves risk, including possible loss of principal. Investments specialized in industry sectors have additional risks, which are outlined in the prospectus.

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    * Patterson, Thom. “Holiday Icon Fights Slowdown by Texting.” CNN. November 27, 2008.

    “Strategy.” 2006 American Tower Annual Report. American Tower. 2007.

 


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