SMS charity donations worth £100m per year in 2013

Research: Thurs 4th June 2009

Research published in the Charity Magazine estimates that text message donations will account for £100 million annually in five years time.

Fund raising via mobile phone is increasingly popular, although 41% of charities are not yet embracing SMS. Apart from the cost-barrier, which is likely to become less significant, the research also reveals how these charities are somewhat ignorant to the potential of SMS donations.

It is advisable to incorporated mobile donations to the wider fundraising strategy, because SMS is very convenient for supporters, and the report also predict that it will exceed the amount generate via payroll giving.

SMS donations are likely to become cheaper in the future, which will remove the cost-barrier. The Uk's main operators; 3, O2, Orange, T-mobile, Virgin and Vodaphone, recently agreed to waive charges for donations to Comic relief, and the HM Treasury responded by exempting VAT (sales tax) on these donations.

Stephen Timms, Financial Secretary to the Treasury, said: "The Government is fully behind the very important work of Comic Relief. That's why I'm delighted to confirm that no VAT will be charged on donations, so every penny donated will go straight to Comic Relief."

What will this mean? With the growing popularity of SMS donations, it is likely that the operators will be increasingly pressured to support donations in general, and that the charity can reach its potential of £100 million donated annually via SMS.

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