Mobile based donations

In the past we have seen Not-for-profit and NGO’s facing problems in receiving payments from donors. It was due to several issues including but not limited to carrying sufficient cash at the time of donation

Therefore both the donor and charity are benefiting from the mobile payment revolution taking place. The charity sees instant money transfer in their bank accounts whereas the donors get a donation receipt emailed to them after every transaction for tax write off purposes.

Charities are taking a note of this new way of receiving donations and have started accepting mobile payments. Through mobile card readers, QR codes, SMS etc. charities are seeing an increase in average number of donations made.

Mobile based donations are not limited to proximity based transactions. There are also alternative ways of mobile based donations; Haiti earthquake in 2010 saw a rise in donations through Mobile, which asked donors to text or SMS donations to the Red Cross.

QR codes are used by charities while advertising in news papers and magazines. A donor scans the QR code from the smartphone which pops up the website of the charity and pays an undisclosed amount through Paypal and gets an electronic receipt to claim taxes.

LTP View: Mobile based donations are catching up quickly. It’s a good problem to solve. Some of the companies in this space who are offering mobile based donations are Obopay, Benevity, Qgiv, Cellum, etc.

Mobile based donations are in practice in the developed nations but are yet to be introduced in the developing nations. Using QR codes, mobile card readers, and texting to donate are innovations which are benefiting the charities and the donors. A detailed report on the increase on donor dollars pre-mobile based donations era and post-mobile based donations era would be quite an interesting read.