One of the sectors hardest hit by lockdown has been charities – but mobile donations has provided a vital fillip, with digital donations continuing to rise through the pandemic.
And now one provider, Dynamic Mobile Billing (DMB), is waving all processing fees on charity short code donations until October. This is open to all UK charities, as an enabler to help the not for profit sector recover.
The charity sector has, like all retailers, been forced to close its stores. Unlike other retailers it has also had to stop raising money in the street and it has also seen its online services take a hit, as shoppers reduce their spending.
Cancer Research UK estimates the impact of Covid to be a 20-25% drop in its revenues – a shortfall of £120 million – and plans to re-open its shops on 29th June – subject to government guidance. The British Heart Foundation with 750 stores has lost £10 million a month during lockdown.
Oxfam has especially been under pressure it was generating £1.4 million per month through its shops and donation banks before COVID-19.
Smaller charities are under even more pressure.
However, mobile has provided some hope. Donations to charity by text grew from £37.9 million to £49.6 million in 2018/19, according to the PSA’s latest report, which estimates that more than 25% of all donations to major telethons are being made via text.
Mobile provides an easy mechanism for supporters to make donations and it appeals to a mobile aware younger demographic, which is so important to charities, says DMB’s CEO Kevin Dawson. 83% of 75+ make donations compared with 69% of 16-24, year olds.
Mobile payments make an ideal charity donation mechanism. It is open to anyone with a mobile, feature or smartphone. It’s a simple proposition for a consumer to understand and use, simply text a keyword to a 5-digit short code.
But what makes it so attractive to charities is that DMB is now offering it without any processing charges until October 2020, so that charities get 100% of the donations, zero setup and rental costs for the short code and zero payment processing fee costs. DMB have removed the commercial barriers of entry (to all charities) to help give back to the sector during this period of extraordinary uncertainty.
As well as this, DMB offer a Gift Aid recovery service to enable Charities to recoup Gift Aid on all donations. The mobile donation proposition has really shaped up to best assist charities and for them to maximise the enormous scope of potential for mobile donations services.
Furthermore, DMB is able to support charities in multi-channel engagement campaigns to personalise and best engage with their supporters. This uses leading technology platform capabilities that are already used by leading companies across Finance, Mobile Networks, Retail, Logistics, Utilities and Local Government.