Mobile fundraising predicted to leapfrog direct mail

by Alex Donohue, Brand Republic 27-Feb-07, 08:30

LONDON - Mobile phone SMS is being tipped to become the main acquisition tool for fundraising organisations worldwide over the next few years, according to a report published by voluntary sector consultancy Think Consulting Solutions.

According to the Think World Fundraising Markets Report 2007 a "mobile phone revolution" is contributing to a sea change in countries which do not have highly developed traditional fundraising infrastructure such as mail-based communications.

Think Consulting Solutions said the 2004 Boxing Day tsunami contributed to a major increase in people making donations by SMS, particularly in Asian countries such as Pakistan, Singapore and Malaysia.

Margaret Bennett, co-author of the report, said: "Traditional direct marketing fundraising needs a strong infrastructure -- factors such as good banking systems, a reliable postal system and the availability of lists."

Bennett added that the absence of a strong direct marketing infrastructure was a "huge barrier" for organisations relying on mass communication to get their message across.

Jason Potts, director of digital activities at Think Consulting Solutions, said: "The Asian tsunami put SMS giving on the global map. It went from nothing to 21% of the total money donated globally via new media channels to one large emergency organisation.

"Countries such as Greece, Slovenia, Pakistan, Singapore, South Africa and Malaysia all raised comparatively significant funds via SMS."

The report added that lack of or inefficient fundraising infrastructure was often the biggest barrier to growing fundraising revenues, and it could also "stop fundraising in its tracks" unless stringent measures to prevent illegal, unsolicited transfers and the selling of personal data were adopted.

Think concluded that mobile phone donations could become the "key new media acquisition tool" over the next few years, providing operators address service fees and cross-network compatibility.

A full copy of the report can be obtained from Think Consulting Solutions.