Is the Haiti Response a Game-changer for Mobile?
Early yesterday evening, the American Red Cross announced it had received more than $5 Million in texts, $10 at a time. That means more than 500,000 people from all over America have texted "HAITI" to 90999. Although they are still raising much more through other forms ($35 million so far in total), this is a record for the organization and for mobile giving. Previously, the Red Cross's most successful mobile giving campaign was in 2008, when they raised $200,000 in response to the hurricane season. Other groups, including Wyclef Jean's Yele Haiti and the Clinton Foundation, are also accepting text donations. It's amazing to see how people are responding to this crisis through various forms of giving, and I wonder what this will mean for future mobile campaigns. In addition, Ushahidi has adapted its mobile mapping technology to assist in the relief efforts. As of this morning, 425 reports have been posted through voice, text and video to help find and map urgent needs, threats, survivor information and response.
We have talked on this blog about how 2010 might be the year of mobile, when adoption and technology catch up with other parts of the world and we begin using our cell phones in new and innovative ways. I wonder if this Haiti response is any indication of what's to come. As we learn more about these efforts and the numbers behind them, the public may have more questions and reactions that could help improve the mobile giving process.
This will lead to increased comfort (and therefore use of) mobile giving, disaster response platforms and other budding technology. I'm sure there are thousands of people who are being compelled to give via text for the first time because of this crisis. People who were unsure about giving at football games or while watching American Idol may have been pushed over the hump by what is happening in Haiti. Odds are, they had a good experience. They received a confirmation text message, it will show up as $10 (and just $10) on their bill, and they will feel even more comfortable doing it again next time.
There will be pressure on the entities involved in mobile giving campaigns. Over the past few days, I've seen people in my Twitter stream pose questions about what the mobile service providers would be donating and how much money actually goes to the beneficiary. As the amount of money given to Haiti through text grows, there could be more questions about who, if anyone, is gaining from this. Through the Mobile Giving Foundation, 100% of donations will go to the organization you choose. Neither the Mobile Giving Foundation nor Verizon, At&T or whoever keeps you connected will take anything off the top. BUT the Mobile Giving website also states that they charge "back costs for short-code costs, reporting and messaging charges directly to the nonprofit organizations or their supporting service providers on a post-donation basis."
I've not been able to find out how much money we are talking about here, but a Seattle Times article last year cited the amount as 10 cents per transaction. If I'm reading this right, 100% of mobile donations may go to the organization, but the organization has to pay mobile marketing companies like mGive to be able to receive these donations. There may be special arrangements made around this campaign for Haiti, but people are going to want to know what these charges are. Undoubtedly, providing this mobile donation service costs money, so mGive and organizations have to charge something to be able to continue providing this service, but this might be the perfect CSR opportunity for a major service provider like Verizon or AT&T. If I were them, I might drop the commercials about the maps for a commercial about how they are funding organizations like mGive and the Mobile Giving Foundation so nonprofits don't have to pay anything to receive mobile donations.
In addition, while service providers are not taking anything off the top of these donations, they are still charging whatever service fee you agreed to when you signed up for your plan. Let's say your plan charges 10 cents per text sent and received. When you consider that you send one text and receive up to three (I did) to confirm your donation, Verizon is making 40 cents on your donation. I think as we realize how much money that adds up to, there will be calls for service providers to either waive all fees on mobile donations or to donate that money.
There also may unfortunately be a little bit of backlash. The fine print says that when you donate $10 by texting "HAITI" to 90999, you are also agreeing to receive up to four texts per month from the Red Cross. While unsubscribing is easy enough (just text "STOP" to 90999), I'm sure the vast majority of people do not know these texts are coming and may get annoyed with text solicitations pretty quickly.
Did you use mobile giving for the first time in response to Haiti? What was your experience and what are your questions?
Comments
I gave to YeleHaiti two days ago, and it was my first time participating in a mobile giving campaign. Although my job keeps me very involved in the mHealth space along with an interest in how mobiles will be used increasingly to share resources (not only information), I had never had the opportunity to participate in such a program.
The speed and clarity of the text messages I received once sending the $5 were great and I enjoyed participating in that way.
Despite all of the uncertainties, it is important to remember a lot of new things are being tested here. As you rightfully mention, this is a first in many areas - both for those giving donations, and the organizations receiving them.
As long as we are patient while continuing to push for transparency and answers to the questions you pose above, this decade will certainly become the decade of mobile money. Thankfully so.
The phone companies definitely need to think about your advice on the commercials and fees. Could do a lot for them.
Giving to Haiti was not my first experience with mobile giving. It was in early 09 at an event where the mobile giving foundation spoke. They did a demo and I gave to Share Our Strength. It was simple enough, so I didn't hesitate to give to relief efforts this time around.
Only hang up is the processing time with the phone companies, but I guess you can't get around that. Or can you?
No-- technology is not a game-changer if the outcomes (i.e, help for Haitians) remains the same. See my blog "Cow Thoughts" about how things in Haiti are still business as usual. Raising money is great-- but we have to make it mean something!
Based on a few trials using text-giving for Children's National Medical Center with the Washington Nationals (with mixed results), I do think the experience with Haiti relief will help build acceptance for this type of giving. But I'd caution that technology does not raise money -- Haiti and Katrina have been two of the biggest success stories for mobile giving for a reason. They are international crises, with an emotional and urgent need.
Mobile giving will have come of age when nonprofits can demonstrate success raising money for ongoing needs, and not just raising $10 from onetime donors. The real key will be determining how to build and maintain a relationship with these donors after they give.
Thanks for this post! Like so many non-profit folks, I am really interested in what this means for giving and engagement. You are very smart to suggest that a mobile carrier step up quickly to support Mobile Giving Foundation. I do think it is fine that Mobile giving charges a fee for transactions. We raise money through telefunding and we have to pay that company. But you are very right that the mobile carriers should waive the text fees.
I think that we will see this technology used in a few innovative ways this year.
Thanks for all of your comments. Mark, I think you are right on the money about the need for nonprofits to build and maintain ongoing relationships with these one-time donors. This is not a challenge faced by many organizations so far, so it will be interesting to see what kinds of best practices result - both for campaigns and for their follow-up - as we see more of this type of giving.
Thanks for this post! Like so many non-profit folks, I am really interested in what this means for giving and engagement. Hotel Thailand
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