Mobile devices, SMS, social networks are options for online donations
Guest post by Kemper Barkhurst
Irecently set up an online donation form for Rio Grande Community Farm, a nonprofit where I serve as board member and volunteer. This PayPal donation form was static and made me wonder about other ways in which nonprofits can raise money with online technologies.
After a little research, I found a few new tricks by which nonprofits can connect and accept donations from their supporters. These methods extend beyond just online payments or joining a social network. Check out the new ways nonprofits can collect donations from a mobile device, a text message campaign (SMS) and even social networks.
Credit card donations with Square
One of those emerging services is Square, a payment system that processes credit cards from a mobile device. This type of system will allow a nonprofit to accept on-the-spot donations. Imagine that your organization is tabling at an event and instead of having to rent a credit card terminal or go through a cumbersome paper-filled process, you grab your smart phone and accept a donation and email the receipt on the spot. There is a low transaction fee associated with each payment and is something that nearly any size, smart phone-equipped nonprofit can get started using fairly quickly once the service is fully launched. The only missing piece would be getting those donors automatically into a mailing list or in a CRM so you can follow up with them of the great work they are supporting (by the way, we can help with that).
SMS donations with mGive
Another way that nonprofits can raise money is through text message donations. A service such as mGive and a well-crafted campaign can open new fundraising opportunities. For a fee, nonprofits can receive text donations in increments of $5 or $10 sent to a designated number. This donation is then charged to the supporter’s cell phone bill, so money can be collected without credit cards or cash payments.
mGive isn’t for all nonprofits, however; service fees range from $400 to $1,500 per month in addition to a fee for each transaction. A free account for contact list building can get a smaller nonprofit started with SMS. This account also allows outgoing messages for a per-message fee. Outside of the free account, it might be difficult to make back the investment without a large media campaign. There are some successes, though, as mGive processed more than $37 million within three weeks after the Haiti earthquake. This is a good testimonial to the power of a well-crafted campaign. Continue reading