The benefits of text donations for charities

In a modern, technology-driven world, embracing text donations could be the future of fundraising for charities.

While text donations have been available for use by organisations in the charity sector for a decade, the most successful campaigns have often been linked to Direct Response Television campaigns and televised events like Children in Need and Comic Relief. 

But, with the coronavirus crisis changing the behaviours of consumers and donors, regular text donations could be the answer to the current problems facing organisations of all sizes in the charity sector. 

This year’s coronavirus crisis has accelerated the existing decline in cash use throughout the country. Wary of the risks of virus transferrence that using cash poses, more and more people are using card and digital methods of payment than ever before. 

This, coupled with the temporary closure of shops, cancelled events and less footfall on the high streets means enterprises, particularly those in the charity sector, have had to pivot their approaches to engaging customers and donors. 

So, as organisations search for ways to continue gathering revenue in the wake of the pandemic, let’s take a look at the benefits of using a text donation service for charities. 

A faster and simpler donation process 

One of the biggest benefits of text donations for donors is the speed in which they can complete the donation. Rather than having to fill out a number of personal details online to donate funds which can take time and effort, text donation systems work by texting a designated keyword to a shortcode phone number linked to the charity recipient. 

For example, a donor would text ‘GIVE20’ to 70XXX, to donate £20 to their chosen charity. The donation is taken from the owner’s prepay balance or added to their contract phone bill.

Text donation allows the donor to respond immediately to the emotional response of an appeal. Being able to monitor responses in real-time also allows the charity to adjust the “ask” or channel mix, in real-time.

Receive larger donations

While donors on the street may offer what change they have available in their pockets, text donations allow donors to give even when they don’t have cash in their pocket.

The charity can set the donation amounts that donors can contribute via text or they can ask the donor to pick an amount they feel comfortable giving. Smart charities communicate the giving amounts by linking them to what can be achieved with the money.

Some charities adopt a “decoy” pricing strategy. By offering, say, £5, £10 and £20 donation amounts most donors will opt for the £10 donation. The number giving £10 can double compared to offer £3, £5 and £10.

“It is a common belief that lowering the donation amount always increases response rates, but in our experience that is rarely the case below a minimum of, say, £5.” Says Roger Craven, Business Manager of Mobile Giving at RSM 2000. “Above all donors want to make a difference and feel good about themselves and what they’ve just achieved.”

The maximum limit for text donations rose from £20 to £30 in 2018 as more charities adopted the system. 

Store donor information

When a donor utilises a text donation service, they agree to terms and conditions that can allow the charity to access and store certain information from the donor, such as their phone number, in compliance with GDPR regulations.

Used wisely, a charity can utilise this direct channel of communication to give donors updates about developments in the charity, explain how their funds have been used or direct them to your charity’s website or social media feeds to encourage more engagement from these donors. 

Encourage repeat donations

Text donations can be executed as singular transactions or set up as a regular donation stream. Securing regular monthly, quarterly, annual or any other periodic donation is, of course, of benefit to charities. And for donors, the amount will come out of their accounts automatically, meaning minimal effort on their behalf. 

With the donor’s phone number on record, if it has been captured in a way that also captures the donor’s permission then charities can use it to drive repeat donations by sending direct messages to donors encouraging them to donate again and reminding them of your current donation campaign.

If donors don’t wish to be contacted in this way, GDPR regulations state that it’s essential they are able to opt-out of future communications, this is usually achieved by texting an opt-out keyword or STOP to a shortcode. 

RSM 2000’s text donations services

Our text donations and text payment services deliver a secure and reliable text payment system for organisations in the charity sector.

The RSM 2000 text donation does genuinely payout 100% of the donation to the charity. Meaning we don’t penalise successful fundraisers.

This service is managed and operated to the same high standards of technical design, security and customer service as delivered in all our RSM 2000 products and services.

Utilising the Vir2 text payments system allows us to offer a complete solution to meet all of your text payment needs; from charity text donations to competitions.

We help clients of any size, from large well-recognised names running TV charity campaigns to small independent organisations, to grow and maximise their funding streams with text donations.

Speak to RSM 2000 today to find out how we can help you begin to maximise your charity’s fundraising efforts with text donations. 

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