There’s definitely real money being spent in this emerging technology, but is their real success to be found?

Of course there is. But probably not yet if you’re a small- to mid-size nonprofit.

For Nonprofit Fundraising

One of the most prolific examples of the sky-is-the-limit mobile campaigns came on the heels of the Haiti earthquake crisis. Passing the unbelievable $31 million mark on the Red Cross’ #90999 texting campaign shows just how phenomenal a powerful fundraising effort can be over basic texting.

On the other hand, not every organization (or, arguably, any other organization) will match this success. At the present time, fundraising via texting is out of reach for almost all nonprofits.

The current state of texting-based fundraising includes some major barriers for small to mid-size 501c3s. Unfortunately, it’s not as simple as calling one of the big four US carriers and setting up a short code. Some of the (significant) road blocks:

• Use of mandatory foundations and ASPs (application service providers) to interact with carriers
• Organization must be a 501c3 with revenues of at least $500,000
• Stringent vetting process to become accepted
• Limited donation amounts of $5-$10 (the average for 2009 on Network for Good was $92)
• Limited short codes
• Expensive – monthly fees with the service mGive start at $400 with a $500 set up fee, and
• Shared costs with partners (in some cases, the wireless carriers) – Up to 5-10% of the amount raised goes back to the Foundation and the ASPs for the short code, reporting and messaging costs associated with campaigns
• Limited function integration

And after that hullabaloo, organizations must then market their appeal. Essentially, with required revenues set at half a million dollars, these campaigns require a major event – celebrity request, concert,, or catastrophe – to compel large numbers of donations. And, in the end, organizations get a check from the carrier, with no ability to interact with texters or collect contact information.

For most organizations, the future is literally where fundraising by texting awaits, as much in the way of technology, service, requirements and usability must change before it becomes realistic.