Thursday, January 14, 2010

Donations By Text Message

In the wake of the devastating earthquake in Haiti, donations through Mobile Text Messages (see related news: Haiti Earthquake: Donations to Haiti Relief Efforts By Text Message - ABC News) has gone up significantly. They are indeed legitimate(though there might be some scams here & there) and the donations are reaching the right organization. It seems in the last few days millions of dollars has already been pledged for Haiti through Mobile Text Messages. Why are aid organizations like the RED CROSS going this route for donations now?

One of the primary reasons being stated is that donations through texting captures the "Impulsive Donors" segment, similar to the "Impulsive Buyers".

e.g., If you go grocery shopping while you are hungry you tend to buy more. The same logic applies here. When people are emotional, they tend to donate immediately. In the traditional way of Donation (through check), if one does not have the check book handy, then they put off donating for a few days. And by that time, such tragedies are not in the news headlines anymore. So, there is a chance that this person might not donate.

Infact according to a study done, it was observed that the donations to the charities are at the highest for the first 6 days after such tragedy/disaster occurs. So, donations through Mobile Text messages is an example of how technology is helping those in need.

Do you think Donations by Texting is here to stay or will it go away in few years?

BTW...did you know that Britain is planning to phase out the usage of check ("Cheque"---as spelled in some countries) books?

2 comments:

  1. Nice article. How does one donate using txt msg? Maybe I could also do my part.

    ReplyDelete
  2. Prahal,

    Thanks for reading.
    Regarding your question on how does one donate via text msg...here is how it works typically.

    You text to a particular number using your cellphone service provider's text message service. Each text msg that you send to that particular number would translate to $5 or $10, usually i.e., by sending that txt msg you pledge to make the donation in that denomination. This amount will be added to your billing statement by your cell phone service provider. And that's how the amount is collected from you. The cellphone service provider will then send your donation and that of others like you to the charity organizations.

    Hope this clarifies.

    ReplyDelete

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