Nonprofit Text Message Marketing Campaigns
“Text ‘Haiti’ to 90999… “
This simple call to action, which was broadcasted on television, the radio and across social networking sites, helped the American Red Cross raise more than $32-million for Haitian earthquake relief in January. To date, it is the most successful mobile-giving campaign; and therefore, has sparked much interest from other nonprofits looking to emulate the Red Cross’ success.
With today’s wide adoption of mobile phones — 83% of U.S. adults have cell phones or smart phones and 35% of users have accessed the Internet via their phone — there is a growing opportunity for nonprofit organizations to use short message service (SMS) campaigns (also known as text message campaigns) to gather support and funds for their causes.
However, prior to doing so, it is important to evaluate both the pros and cons of implementing this type of fundraising, and to consider how a mobile campaign would fit into your overall marketing strategy.
Convenience Factor
The main benefit of texting campaigns is that they are convenient and instant for donors. All the donor has to do is send a specific text message to the short code provided (“90999” in the case of the Red Cross). Donations are then charged to the donor’s phone bill.
Since this can be done while a contributor is on the go and doesn’t require providing a credit card number, it makes donating fast and easy, thus increasing the likelihood that people will contribute.
As stated in “Has Mobile Giving Reached a Tipping Point?” by Tony Aiello, co-founder and CEO of mGive, a mobile-giving technology company, “The real power of text donations is in its immediacy and its ability to expand the number of people involved in charitable giving.”
Characteristics of Successful Texting Campaigns
Despite the benefits, mobile fundraising campaigns can be costly to implement. For example, mGive charges from $399/month-$1,499/month plus successful donation transaction fees to use its platform. (Note: Monthly fees vary based on the number of outgoing messages.) Because of this, nonprofits need to evaluate how much they stand to make, and whether their organization will achieve a significant return on investment with mobile giving, prior to launching a campaign.
Tied to an Event
Geoff Livingston (@GeoffLiving), co-founder of Zoetica, a communication agency for nonprofits and socially conscious companies, said, “For texting to be really effective in my opinion, you need an event in time (good or bad), and significant stakeholder base to make it financially viable,” during a Chronicle of Philanthropy live discussion.
For example, the Red Cross’ campaign centered on the earthquake in Haiti, and the organization had a network of more than 700,000 volunteers, 34,000 employees, 4,000,000 blood donors, 180 national societies and 720 locally supported chapters to rally behind its cause, in addition to a large percentage of the population who were educated about the campaign through advertisements, news media and social networks. Other event-based examples include: Tom Brady and United Way's campaign during the 2008 Super Bowl and Alicia Keys and Keep a Child Alive's campaign during Keys' American Idol Appearance.
Stakeholder Base
As for the size of the stakeholder base, Livingston recommended a base of at least 100,000 cold contacts. That way, if the nonprofit has a 1% success ratio at $5-$10, it will roughly cover the costs for one month. For example, 100,000 contacts would result in approximately 1,000 donors, and consequently a minimum of $5,000. Compare this to the typical cost of $3,000 to $10,000 to run the campaign. For smaller organizations, the costs will likely outweigh the benefits.
It is also important to consider the demographics of the stakeholder base. In the case of the Red Cross campaign, younger people were more likely to contribute via text than older generations — a trend that is likely to span across organizations. By taking a good look at its current donor base, organizations can better determine whether SMS campaigns will appeal to their contributors.
Organizational Reach
A final item to consider is whether the organization has the power and reach necessary to promote the campaign. Consider the following:
- Does the organization have a community of followers on social networking sites that will help spread the message?
- Do they have an email or phone list to promote the campaign through?
- Are there key influentials who are interested in, and willing to, spread the word?
- Are funds available to advertise the campaign via traditional, online and mobile outlets?
Common SMS Fundraising Challenges
Even for organizations that seem to be a good fit for texting campaigns, there are still some challenges to consider, including:
- Working with third party vendors — According to the Mashable article “5 Real Challenges For Non-Profit Texting Campaigns,” nonprofits cannot simply partner with the cell phone carrier, instead they need to go through third party vendors, who typically have strict regulations when working with them. Note: Some third party vendors to look into include: mGive, Mobile Giving Foundation, Wireless Foundation and Mobile Commons.
- Donation restrictions — Due to regulations, individual donations are capped at $5-$10. Because of this, organizations run the risk of limiting someone’s donation, since donors might give more if solicited through other channels, such as direct mail, the Web or email marketing.
- Mistyped codes — As mobile giving increases in popularity, donors will need to make sure they are typing in the correct keyword and short code; otherwise, the money may not go to the organization it is intended.
- Length of messages — With a 160 character limit on text messages, organizations need to learn how to be short and concise in their appeal, while still driving people to action.
- Funds are not immediate — During the Chronicle of Philanthropy live discussion, Wendy Harman (@wharmon), social media manager at the American Red Cross, said that it typically takes 60-90 days for the nonprofit to receive donations through text.
Marketing Integration
The final piece to a successful mobile fundraising campaign is integration with other marketing efforts. By including the campaign in an integrated marketing plan, nonprofits can maximize the effectiveness of text-message campaigns, build up their databases of supporters, and increase awareness about their causes.
Opt-In for More
One integration element may be to follow donations with a message that asks donors to opt-in to receive text message updates about the organization, connect with the organization on social networks, or sign up for an email newsletter. Establishing a channel for ongoing communication will allow nonprofits to follow-up with donors after the campaign. Note: Never send unsolicited text messages or emails to people. Only send to those people who have agreed to receive updates.
During the Chronicle of Philanthropy live discussion, Wendy Harman explained the Red Cross’ follow-up this way: “The American Red Cross can text those who opt in to receive texts from us four times per month. We have used these additional texts to share the impact the donor's donation has had in Haiti and to invite them to follow us on Twitter or sign up for email updates.”
Link to Existing Campaigns
Another tactic to consider is linking mobile giving with existing fundraising campaigns. For example, the American Cancer Society may be able to incorporate text message fundraising into its Relay for Life events, or public broadcasting outlets may be able to incorporate it into their annual phonations. Think of those initiatives you already have planned, and whether this added fundraising platform could enhance your efforts.
Advertise through Established Channels
Promote your texting campaign through established channels, such as your organization’s email newsletter, annual publications, direct mail pieces and social networks. Use these outlets to spread the message among those people who already have a vested interest in your cause.
Encourage Supporters to Tell Others
Consider prompting donors to alert their friends or followers of the campaign through status updates on Facebook or Twitter, or providing tell-a-friend options where donors can send text messages to those people in their address book, asking them to donate as well.
Your Thoughts on Mobile Giving
- Which organizations/situations are ideal for mobile giving campaigns?
- What effect will mobile giving have on future fundraising campaigns?
- What benefits and challenges are associated with mobile giving?
- How can mobile giving fit within a larger marketing strategy?
Special thanks to Geoff Livingston, Wendy Harmon and the Chronicle of Philantrophy for hosting the "Text-Message Fund Raising: What Your Group Needs to Know" live discussion in March, which inspired this post.
Tracy DiMarino is an associate consultant at PR 20/20, a Cleveland-based inbound marketing agency and PR firm. Follow Tracy on Twitter @TracyDiMarino.
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Photo Credit: isla_yelo
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