Best
Ways to Donate - Quickly
If
you're like me, you've been glued to the TV, newspapers,
and websites that are covering the horrific tragedy
in Haiti I feel so fortunate to have food, water
and shelter, and like so many others around the
world, we want to do something to help those in
need.
In
today's eCommerce tip, I'll discuss the different
options for online giving, including the pros
and cons for each.
Text
Messaging:
In
one day, the Red Cross raised more than $5 million
using text messaging (CNN).
Spread virally by Twitter, Facebook and other
social networking sites, site:
From
your cell phone, text "Haiti" to 90999
to donate $10 to the International Response
Fund. The money will go directly to relief efforts
in Haiti, and is billed directly to your bill.
Or,
text "YELE" to 501501 to donate $5
to Yele Haiti.
How
it Works:
When you send a message to a 'short code' like
90999, your cell phone transmits a message to
a system set up by the Red Cross that confirms
your transaction. Before your phone is charged,
you have to confirm by replying "YES"
back via text. Many of the cellphone companies
are waiving the text messaging charge; mGive that
handles the mobile text giving system is waiving
many of their usual charges as well.
Advantages:
Quick.
Fast. Easy. Wildly Successful. Allows the 96.2
million text messaging users in the United States
to easily donate. You don't have to visit a website,
find your credit card. For many people, a $10
donation won't impact their bank account or force
them to skip a meal. But $10 can buy 200 doses
of antibiotics (at 5 cents each).
Disadvantages:
The
biggest drawback to text messaging donations is
that it can take up to three months for the money
to be distributed to a charity like the Red Cross
or Yele. This is because these systems rely on
you to first pay your wireless bill at the end
of the month, and then it can take more time for
the wireless carriers to process the charges.
That said, I expect many of the wireless carriers
will try to speed up this process.
Online
Donation (Via Credit Card):
The
traditional way of donating online works by visiting
a secure page on a site like the Red
Cross:
How
it Works:
When you visit the secure donation page, you enter
in your information, including the amount you
want to give, your name and credit card information.
When you hit "Submit," the Red Cross
donation page connects to a payment gateway that
checks to see if your credit card is valid, that
your name and address match properly. The payment
gateway then gives a success message if the charge
is approved, or a decline message if the person
typed in their credit card number incorrectly.
The
funds are taken from your credit card immediately
(although today, the Red Cross is reporting that
due to high volume, it make take up to 12 hours
for the charge to appear on your statement).
Money
is then deposited into the bank account for the
Red Cross, usually within 1-2 days. You receive
a confirmation email that confirms your transaction.
You will also receive a tax-deductible statement
that you can use to subtract your donation from
your taxable income, too.
Advantages:
Easy
to give more than $10, and do so in a secure way.
There are 227.7 million Internet users in the
United States - more than double the number of
people who text message.
The
money arrives quickly into the bank accounts of
charitable organizations, where it can be distributed
rapidly.
Disadvantages:
It's
takes more steps to donate than using a text message.
It's tough to use your credit card to donate with
an online form from your mobile device. Part of
your donation is eaten up by credit card transaction
feeds (often 2-3% of the transaction).
Donate
Via Check:
Believe
it not you can also still donate via check:
How
it Works:
This is for those folks under the age of 25 who
don't seem to know what a postage stamp is or
how they can pay a bill that's not online. When
you write a check, put it into an envelope, and
add a stamp, the post office delivers your check
to the organization, where they deposit it into
their account.
You
receive a confirmation letter via postal mail
that confirms your donation. You will also receive
a tax-deductible statement that you can use to
subtract your donation from your taxable income,
too.
Advantages:
No
transaction fees. Ideal for larger donations.
Many organizations cannot make a sizable donation
on a credit card as well. Money is available very
quickly.
Disadvantages:
You
need stamps, an envelope and a checkbook. It can
take more time for the money to arrive. Someone
at the organization must physically deposit the
check, type in your address and information, and
mail you a confirmation letter.
Summary:
Making
it quick, fast and easy to donate in small amounts
is breaking all former fundraising records. But
there are pros and cons to each approach -- and
at this point, mobile giving can take longer for
your donation to have an impact. |
