Marketing and Fundraising through Mobile Phones
New Strategies for Non Profit Organizations and Charities
Elena Bellio
1
, Luca Buccoliero
1
and Giorgio Fiorentini
2
1
CERMES, Department of Marketing, Bocconi University, Via Roentgen 1, 20136 Milano, Italy
2
CERGAS, Bocconi University Via Roentgen 1, 20136 Milano, Italy
Keywords: Non Profit, Fundraising, Mobile, Internet, Charity, Italy.
Abstract: This position paper highlights new scenarios for mobile communication technologies in fundraising
activities of non profit organizations. Over the past two decades, ICT and the Internet have dramatically
changed individuals’ behaviours, including their approach to donation. New expectations arose on the
possibility of “online” fundraising activities and not only computers are determining this change but also the
potential of (smart) phones must be acknowledged. Mobile fundraising projects have been implemented
both at global and local level to support various causes such as: natural disasters, poverty, diseases (cancer,
HIV, sclerosis), wildlife, human rights. This is a positioning paper whose objectives are the following: (a) to
define the mobile technological scenarios and their trends of diffusion for fundraising by identifying some
best practices at an international level; (b) to assess the mobile fundraising initiatives in the Italian non
profit sector.
1 INTRODUCTION
This position paper highlights new scenarios for
mobile communication technologies in fundraising
activities of non profit organizations. We strongly
believe that innovative tools and services, based on
mobile, are shaping new trends and opportunities for
raising money for charities.
The main objectives of this paper are the
following:
1) to define the mobile technological scenarios and
their trends of diffusion for fundraising by
identifying some best practices at an
international level;
2) to assess the mobile fundraising initiatives in the
Italian non profit sector.
Our framework of analysis is built on the following
meaning of the term non profit: “any form of activity
associated with a restriction on what an
organization may do with any surplus (“profit”) it
generates. The essence of this form of institution is
that a non-profit organisation may not lawfully pay
its profit to owners or, indeed, to anyone associated
with the organisation. Along with this restriction,
however, come a variety of tax, subsidy benefits and
external donation opportunities that influence non
profit actions (Weisbrod, 1988).
This wide definition allows us to discuss innovation
opportunities without specific link to the variety of
national regulatory frames and legal systems.
2 CONTEXT ANALYSIS
The concept of fundraising cannot be reduced to the
mere collection of funds: it is an activity that must
indeed be understood as a set of permanent strategic
actions, and not as a simple set of techniques to be
used in case of financial need .
A shared “technical” definition considers
fundraising as "the set of all spurs that non profit
organizations implement to raise money, collect
material goods and time of volunteers". Beside this
aseptic definition which considers only the operative
dynamics, Hank Rosso (Rosso, 2010), one of the
most important exponents of this discipline, provides
an "emotional” definition describing it as "the gentle
art of teaching people the joy of giving". This
implies that fundraising has to do with people and
not with asking them money, but rather by creating
durable relationships.
We can therefore agree on the following
209
Bellio E., Buccoliero L. and Fiorentini G..
Marketing and Fundraising through Mobile Phones - New Strategies for Non Profit Organizations and Charities.
DOI: 10.5220/0004527102090216
In Proceedings of the 4th International Conference on Data Communication Networking, 10th International Conference on e-Business and 4th
International Conference on Optical Communication Systems (ICE-B-2013), pages 209-216
ISBN: 978-989-8565-72-3
Copyright
c
2013 SCITEPRESS (Science and Technology Publications, Lda.)
definition: "fundraising is what the organization
does to create relations of interest between those
seeking economic, material and human resources
and those who are potentially available to give
them" (Melandri, 2011).
It is important for non profit organizations to
understand when it is actually worth investing in
fundraising campaigns. Bradley (Bradley, Jansen et
al. 2003 ) argues that charities spend at least 18% of
their profits in fundraising but that most of these
investments turn out to be quite inefficient.
According to the latest approaches, fundraising,
rather than simply being tied to the culture of charity
or philanthropy and patronage, is based on social
responsibility that drives the community to invest
resources to achieve common social benefits. The
term "fundraising" itself includes all the theories and
techniques required to ensure the sustainability of a
social cause and of the organization that supports it
and to promote the constant development towards a
multiplicity of public and private actors.
The advent of ICT has provided new
opportunities for fundraising. Not only Internet
represents a great challenge but also mobile phones
(becoming increasingly smart and multifunctional)
are excellent tools that, if wisely used by non profit
organizations as part of the fundraising mix, are able
to support fundraising strategies. Cell phones can
then become an exercise of brand-building for large
private business and of fiduciary pursuit for non
profit organizations (Dumlao 2005).
Currently it is estimated that only 14% of the
charities are already using mobile phones as a
communication tool while 30% say they are
interested in adopting such a tool. In both cases we
consider large organizations only.
In February 2010 Kaptivate (Vassallo, 2010) has
worked with many partners to assess the level of
adoption of mobile phone in non profit and to
understand what is their attitude towards this
technology. The sample was made of 162
organizations, heterogeneous as for size, category
and life cycle. Results showed a general interest in
the potential of mobile with 22% of respondents
expressing "very strong interest”, 27%" strong
interest", 43% "interest" and only 8% "no interest ".
In addition, 36% of respondents stated that they
already use the mobile or want to start using it
within 12 months, while over 50% said that their
organizations will adopt forms of fundraising
through mobiles over the next two years.
At the same time, a kind of frustration has
emerged because organizations feel they do not
possess information regarding the implementation of
fundraising campaigns. There is a lack of awareness
on the potential and on best practices. This means
that more than 45% of the fundraising campaigns via
mobile is not fully understood and therefore is not
perceived as a real opportunity within the
organization. This lack of information brings
resistance by organizations: 40% of them considers
mobile fundraising simply a cause of additional
expenses to already limited resources, 34% think it
is a very expensive channel and 28% think it can’t
be integrate with the existing system of donations.
Despite this, over 30% of respondents want to
explore the mobile world, but the biggest fear lies in
the belief that being small precludes participation in
such projects.
The study also allowed to capture those who are
perceived as the main advantages of using the
mobile phone to raise funds and also the main
disadvantages.
On one hand, the phone for the donor is a useful
tool (82%), which offers one more way to
demonstrate participation (74%); on the other hand,
it allows organizations to attract new donors (69%)
in a way that is perfectly integrated with the
activities of social media. At the same time it is
difficult for a non profit to communicate its mission
with a short text via mobile furthermore 32% of
respondents know that normally through phone just
very small amounts of money are allowed.
The three following aspects were emphasized in
order to improve the experience of donors: greater
participation thanks to integration with social media,
a better service through easy, quick and transparent
solutions and increased affordability.
It was also confirmed that better trading
conditions, lower dependence on wireless devices
and the availability of data on the behaviour of users
would help the adoption of mobile solutions
(Vassallo, 2010).
Any discussion on ICT and fundraising must
explore not only the use of specific devices, but also
the databases that enable organizations to build and
maintain long-time relationships with their
supporters. These databases provide data about the
interaction between the donor and the organization
itself in order to understand the power of the
different systems of fundraising to develop an offer
increasingly aligned with the needs and the values of
donors. But unfortunately their full potential is often
unexploited and the organization still finds difficult
to understand the donors’ motivations and
behaviours and to build strong relationships by
customizing specific strategies for the different
targets. To this extent, two cost items have
ICE-B2013-InternationalConferenceone-Business
210
decreased significantly: the cost of communication
and the cost of customization (Gilbert 2003).
An interesting study in this regard was
conducted by Milan Politecnico (Osservatorio
Mobile Internet, 2012) that estimates 800 million
euro as the value of the Mobile Broadband in Italy:
mobile broadband connectivity from
smartphones/tablets and PC account respectively
26% and 17%. The mobile world is an incredible
place of digital innovation where interesting new
business models are being experimented (Moroni,
2010). The new slogan is "Mobilize the Mobile”,
which means being a non profit organization able to
develop a fundraising campaign that takes advantage
of available systems, minimizing costs, but
increasing revenues as much as possible.
People are now accustomed to use the phone to
interact with organizations (CAF); it is therefore
important that organizations understand which
instruments to choose and how to integrate them
together.
3 INTERNATIONAL BEST
PRACTICES AND AVAILABLE
TECHNOLOGIES
In this section a sample of innovative experiences in
mobile fundraising is presented.
Our efforts are focused on countries that are
considered “state of the art” in terms of mobile
service diffusion. In addition to desk research
activity aimed to a benchmark of best practices, an
expert group in the field of fundraising was set up to
highlight and quantify benefits and limitations of the
different tools and to identify any obstacle in the
Italian context.
Table 1: Tools to implement mobile fundraising
campaigns.
Payment services through
mobile phones
Other contact tools with
“moving” donors
Text messages to authorize
donations charged on mobile
bills;
The potential of 4G
Mobile networks used for
the exchange of
multimedia content;
Text messages to authorize
donations through other kinds
of charge (pay-pal, credit card,
etc);
The use of GPS tools that
allow location based
messages and contents;
Airtime donations; QR codes;
Use of mobile phones with
Near Field Communication
(NFC) technology.
Celebrities’ voice
messages stimulating
donations
Apps for smartphones
In this respect the main available tools are
presented in the following Table 1 and then each
technology will be described and enriched with
examples that allow a better understanding of its
potential.
3.1 Payment Services through Mobile
Phones
3.1.1 Text Messages to Authorize Donations
Charged on Mobile Bills
This is the most used instrument adopted by a wide
and heterogeneous group of people for age, gender
and scholarship. Furthermore, this tool is often used
by donors because it does not need a stable relation
with the organization and it is an anonymous way of
giving money which does not necessary bring to
planned and regular donations.
The most relevant experiences are connected to
campaigns launched after natural disasters. The Red
Cross had planned a campaign which allowed to
support the Japan Earthquake and Pacific Tsunami
relief efforts and later the victims of Hurricane
Sandy. The way to make a donation is really simple.
In the Unites States you just need to send a text
message with the world "GIVE" at a specific
number; you then receive a message in which you
are asked to confirm the donation of 5.00 $ to the
Red Cross Disaster Relief Fund , the amount is
directly charged on the mobile bill.
Remarkable is the case of ASPCA, the America
Society for the Prevention of Cruelty to Animals
which was able to convert standard mobile users into
donors by the use of text messages. People can send
a text message with the word “cat” or “dog” and will
receive free authoritative tips on those two species
of animals. On the end of these information it is
asked to answer with the word “give” to offer 5 $.
There are also experiences where, in order to
encourage fundraising activities, the use of mobile
phones is combined with the use of the web. This is
the case of Meir Panim, an Israeli charity that offers
a range of food and social services and has launched
an interactive fundraising campaign called "TEXT
MESSAGES for lunch". The institutional web site
with the image of a child with an empty dish invites
people to donate through text message the price of
one lunch. When the system received the sent
message, the banner changes: the plate is now full
and the child smiles.
Mobile fundraising project is also often linked to
social networks (Facebook and Twitter).
The use of text messages for fundraising was
MarketingandFundraisingthroughMobilePhones-NewStrategiesforNonProfitOrganizationsandCharities
211
successfully first adopted in 2005 at the Live 8 UK:
during a concert at Hide Park in London a lottery
was launched and every ticket had to be bought
through mobile. This generated 2.1 millions of
messages which brought to 3 millions of pounds
donated to the Great Britain Live 8 project.
3.1.2 Text Messages to Authorize Donations
through other Kinds of Charge
(Pay-Pal, Credit Card, etc)
This fundraising tool does not charge the donated
money directly on mobile’s bill but on a pay-pal or
credit card account. From the organization’s point of
view this way of making donations has a great
advantage since it allows to obtain data from the
donors’ accounts.
For example, Amnesty International and
UNICEF have both experimented a pay-pal mobile
initiative: donors simply had to send a text message
with the word "AMNESTY" or "WATER" and they
received a link that allowed to donate 10 $ to the
chosen organization.
An interesting initiative was promoted in Los
Angeles during an event for HIV prevention in
which donations were raised through text messages
(the links that connected to the PayPal account were
spread around the city).
3.1.3 “Airtime” Donations
Donation of “airtime” is a “de facto” currency in an
increasing number of countries, especially in African
Countries, and therefore it is a potential source of
revenue for local non profit organizations. Before
leaving a country, tourists could, for example, be
encouraged to donate their left airtime to a local
cause.
M-Pesa, for istance, is one of the most known m-
payment services which allow pre-paid mobile
clients to transfer “airtime” between mobiles. Kenia
was the first country in the world offering this
service through a partnership with Safaricom and
Vodafone.
3.1.4 Near Field Communication
Technology – NFC
Mobile phones equipped with NFC connectivity
(RFID operating at 13.56 MHz and capable of
transferring data up to 424 Kbits per second) are
allowed to manage safe payment authorizations
(without signature but for mere proximity to
readers). Therefore, a payment/donation can be
directly charged to credit cards or mobile bills.
This tool has a great diffusion in Japan, where an
agreement between mobile operators, the banking
system and credit card operators makes this simple
and effective. Many Countries (Australia, France,
Ireland, Korea, Malaysia, Norway, Philippines,
Singapore, Taiwan, Turkey and United States) are
ready to join this revolution.
In Italy these new mobile payment scenarios are
now discussed but the situation is critical because of
two major constraints:
• the first obstacle has a bureaucratic nature related
with the structure of the financial system;
• the second obstacle has a behavioural nature:
people are still very tied to traditional models of
payment.
3.2 Other Contact Tools with Moving
Donors
3.2.1 The Potential of 4G Mobile Networks,
used for the Exchange of Multimedia
Content
4G development is already fully operational in some
countries and provides a huge amount of mobile
broadband which allows the offering of a wide range
of services.
Amnesty UK for example is experimenting a
new concept of mobile websites in order to allow
interaction between donors’smartphones, also
through downloading of ringtones, games, screen
savers and other special contents to be sent to
mobiles are a useful way to sensitize people and to
raise money in fundraising campaigns. Also New
York Philharmonic sells mobile ring tones on its
web sites; Leap Wireless International Inc. often
proposes to his clients the possibility to help people
involved in natural disasters by buying and
downloading screen savers. Boost Mobile has
offered a playlist of ringtones for UNICEF to
encourage fundraising among young Americans.
The Australian Sudden Infant Death Syndrome
Organization through an agreement with the
Telecommunication company Telstra, offers at its
clients the possibility to order a logo with “a red
nose” which is sent directly to the smartphones. For
each “red nose” Telstra donates at the organization
micro founds for helping research.
3.2.2 The Use of GPS Tools that allow
Location based Messages and Contents
Location-based mobile applications also called
"check-in service" are very popular today, ranging
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from applications as Foursquare and Mytown, on
one side, to shopping experiences as Shopkick, on
the other. The evolution of these systems has also
produced creative solutions for fundraising: with the
increased competition between services such as
Foursquare, non-profit organizations are undergoing
a significant boost to innovation. The choice to
exploit the power of geo-location for a social reason
becomes a form of creative adaptation of cause
marketing.
Despite this sudden development in multimedia
applications, some analysts suggest caution to those
who decide to embark on this form of innovation, in
fact Forrester Research Inc. has estimated that only
4% of U.S. adults have used location-based
applications and only 1% of those who use them did
so more than once a week. In addition, 84% of the
considered sample has said that in general these
applications are considered unfamiliar. Another
figure that can dampen the enthusiasm is that 70% of
location-based systems’ users are aged between 19
and 35 years. Despite this, a study conducted by ABI
Research has calculated that in 2015, companies
will be willing to spend up to 1.8 billion U.S. dollars
for ads based on location based systems (ABI).
We can already find interesting location based
systems used by non profit organizations. For
example, Earth Justice has launched a campaign
against dangerous exploitations of oil through an
application. When an individual checks in, 10 $ are
donated for this cause.
“VolunteerMatch” , is an app for iPhone
launched in March 2010, which puts together good
people with good causes. It allows to find over
60.000 fundraising opportunities close to where you
live, work or study to be able to choose the perfect
one. Furthermore there’s the chance to read
comments of other people and to share experiences
with others who have the same interests.
Cause World allows users to gain “karma point”
when they walk into shops and make their check-in
through the mobile even without having to purchase.
Karma points are like real dollars and can be
donated to 9 good causes.
3.2.3 QR Codes
QR code were born in Japan and today represent an
interesting way to be in contact and involve users
through a rapid access to web contents through
smartphones. WWF Germany in its campaign to
protect tigers provide a QR code to allow an
immediate access to the online resources.
3.2.4 Celebrities’ Voice Messages
Stimulating Donations
A voice message is often recorded and/or
broadcasted in live sessions by celebrities in order to
capture attention on a social cause and to eventually
makepromote a donation.
3.2.5 Apps for Smartphones
Apps are developed for improving the relationship
with potential or actual donors exploiting the
features of the latest smartphones.
This tool, from the non profit organization’s
perspective, has some limitations: developing an
application embodies substantial expenses that by
now have not been shown to be covered by the flow
of donations. It is not predictable how many will be
encouraged to make donations. It’s obvious that in
this way the system becomes more complex to the
donor because it requires first to download the
application and then to search for a specific
organization, but once this is done it becomes fast
and easy to give money.
The International Committee of the Red Cross,
through an app, allows people to receive the latest
news on its activities and to access a section of
photos, videos and publications.
Mazon, an Israeli non profit organization, since
1985 has been allocating donations from the Jewish
community to prevent and alleviate hunger among
people of all faiths and backgrounds. In 2009 it had
implemented a free apps that allowed people to
donate and to find different voluntary opportunities.
CharityFinder works like a search engine which
gives the chance to donate at more than 1800 non
profit organizations. The application includes simple
profiles of organizations which through the
“support” button directs to the specific web site to
make a donation.
Some apps allow a real interaction between
donors and the organization. “The Extraordinaries”
for example allows people to do micro-actions in
favor of non profit organizations. Furthermore users
can, through the use of their mobile, upload material
on animals or on the environment and record
messages for children who live in poverty.
4 THE ITALIAN CONTEXT
The Italian context of non profits and fundraising is
a multifaceted reality that is characterized by three
critical aspects:
MarketingandFundraisingthroughMobilePhones-NewStrategiesforNonProfitOrganizationsandCharities
213
1. the presence of "many small budgets”: 54.9% of
organizations have less than 15,000 euro per
year, while 30.7% have between 15,000 and
500,000 euro per year;
2. there are few organizations that hold the largest
share of resources: 9% of organizations have the
88.8% of revenues, while 91% of organizations
have the 12% of revenues;
3. fundraising does not support all causes in the
same way.
The world in which organizations operate is
undergoing deep social changes that have a
determining influence on the meaning and on the
operational side of fundraising.
The main factors of change recorded in the
Italian market in recent years are:
• a gap between the social, economic and
organizational challenges that non-profit have to
face and their capacity in terms of management,
communication, marketing, design, quality
control etc.
• rapid obsolescence and low margins of
affordability of the systems used in recent years
to collect funds (direct mail, events,
sponsorships);
• increasing need for cooperation with public and
private entities. Furthermore, more public actors
(Department of Culture, hospitals, schools,
theaters, libraries) turn to fundraising since they
can no longer sustain themselves only with
public finances.
This context has shown that over the past 30 years
the social and cultural meaning of fundraising has
profoundly changed.
Through the opinion of the group of experts we
were able to identify the main elements of mobile
fundraising in Italy.
The text message is simple, popular and
affordable and it is still the main system used today
in Italy.
There are two main reasons for this
phenomenon: first, the existing legislation which is
really strict on this matter and therefore discourages
non profit organizations to use mobile fundraising
systems, second based on local culture.
An element that must be considered when
implementing a text message campaign in Italy is
the limited amount of money that can be donated:
maximum 2 euro.
In general, the mobile operator selects the cause
to be sustained considering some main elements:
• the brand awareness: well known non profits are
the favourite;
• the cause: support is given first of all to research,
then childhood and developing countries;
• the communication campaign: it must be
multichannel
Another key element in mobile fundraising is the
way emergencies are managed. It is important to
consider the impact a certain event has on media.
Normally the elements which more influence people
and as a consequence the amount of money collected
are:
• the place of the disaster: if in our country people
feel more involved;
• if some Italians are involved;
• if children are involved.
A small step forward in the Italian initiatives was
made by Vodafone with its recent initiative in
support of AIRC (Cancer Research Italian
Association). RicaricAIRC is in fact a new and
simple way to offer support through a periodic
donation service: you can give small contributions
continuously in time using mobile bills.
This small sum is deducted from the monthly
rechargeable SIM or in the case of subscription,
from the phone bill. Vodafone will donate the entire
revenue at no additional cost.
This system becomes a middle way between the
sending of a single text message to support a
charitable cause and the possibility of creating a
relationship between a donor and the non profit
organization.
Two of the biggest limits linked to the use of text
messages by non profits are: the absence of long-
term relationships and the lack of control on the
donor by the organization (because they are usually
customers of the telephone company).
5 DISCUSSION
AND CONCLUSIONS
As explained above, the adoption of the mobile
device in the area of fundraising is a relatively
young phenomenon which has been widely adopted
just in its simplest forms (such as sending text
messages), while it appears almost completely
unexplored in relation to the use of wireless
connectivity which would allow the donor a rich and
integrated experience.
The qualitative description of the above
mentioned experiences leads to conceive two
different opinions on the adoption of mobile tool in
fundraising:
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214
• mobile considered as an ideal instrument
because, if wisely used, it allows to collect huge
sums of money. Thanks to its ability to reach a
wide target it is considered a key tool with a
glorious future;
• mobile considered as a tool that by itself is not
capable of producing large returns. The general
idea is that it is not worth using it if not in
combination with other more traditional (and
now widespread) fundraising instruments.
Main strengths in the use of mobile phones in
fundraising are the following:
• mobiles are an “everyday tool”: on one hand, this
allows non profit organizations to reach a
potential donor at any time and, on the other
hand, it allows an individual to become a donor
wherever he is and when it is more convenient to
him;
• mobiles do not have a specific target: it is used
by a group of extremely heterogeneous people
(for age, gender, scholarship, geographic area);
• mobile allows real time interaction and
potentially may develop long-time relationships
Main weaknesses in the use of mobile phones in
fundraising are the following:
• the large number of players involved in a mobile
fundraising campaign;
• the limited amount of money that can be donated
through text messages: for the Italian law no
more than 2 euro;
• “cross-selling” and “up-selling” opportunities do
not exist (Christopher, Payne et al. 1996). Loyal
donors will increase their donations and will
donate in different ways as buying through
catalogue, working as volunteers or by endowing
(Sargeant and Jay 2009). It is expected that loyal
donors exchange information and opinions on
organizations in person or through the internet.
Loyal donors will talk with their friends about
the organization, its programs, the services
offered and will ask others to support a cause
(Smith and Chaffey ; Palmer 1994);
• loyal donors are the best potential endowers. The
bigger is trust, the bigger will be the performance
in the fundraising program.
• the non profit organization has no "control" on
the donor except if exploiting fourth-generation
technologies: the individual does not become a
donor of the non profit organization. This makes
it difficult for the organization to obtain data on
individuals, information that would be extremely
useful to understand the target and implement
additional fundraising campaigns.
• slowness in the process: the period of time
between the moment when an individual gives
and the time when the non profit organization
collects the money is extremely dilated, for
example very often, in case of donations via text
messages, even 90 days elapse between the two
phases (Raley 2010).
Considering that more and more people have access
to the Internet from their mobile phone, it's time for
non profit organizations to clearly understand the
strategies and technologies that are behind donations
via a mobile phone, not only in times of disaster and
emergency but even within their normal fundraising
strategies which is where the real opportunity
strands.
The primary limitation of this study is the
exploratory objective. Since this is a positioning
paper it is made to define the mobile technological
scenarios and their trends of diffusion for
fundraising in the Italian non profit sector. A cost-
effect analysis is still missing.
Because of this main limitation two future
research projects are possible. It may be interesting
to determine the impact of the adopted fundraising
tools on donors’ expectactions and behaviour.
It may also be useful to outline a decision tree to
support non profit organizations in selecting the
proper mobile fundraising strategy. The decision tree
should include elements linked to the legal context
and to the non profit organization nature.
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