Is Mobile Fundraising the Next Frontier for Charities?

The other drawback is the limit that carriers will let a donor give via premium SMS, currently capped at $10. Carriers also hold the money for premium SMS donations up to two months before releasing the funds — once the customer’s bill is paid.

Last, the carriers take a substantial cut of the donation — as much as 40 percent to 50 percent. There are several mobile vendors who have been trying to allow for much reduced charges for legitimate charitable purposes, but so far to no avail. It is worth noting that the carriers waived their fees for the Red Cross relief campaigns.