Text-to-donate campaigns are becoming popular fundraising methods these days as they offer people an option to donate in just a few seconds and from anywhere.
Nonprofits have also found that text-to-donate campaigns are more profitable than their other donation channels but they are still facing many challenges while doing text-to-donate campaigns that they need to overcome to reap maximum benefit from this campaign type.
Many nonprofit organizations faced these challenges while doing text-to-donate campaigns. The steps are easy and simple; anyone can use their mobile phone number to donate to any of their favorite charity organizations.
However, as easy as it looks, nonprofits encounter lots of challenges while they are conducting these campaigns and one must know about them before they start conducting these campaigns.
1) Low conversion rates
One of the major challenges nonprofits face while doing text-to-donate campaigns is low conversion rates. The average text-to-donate campaign has a conversion rate of only 1-2%. That means for every 100 people who see your text to donate campaign, only one or two will donate. There are several reasons why conversion rates are so low.
First, people are generally not very interested in giving money to charities.
Second, even if they are interested, they may not have the money to spare.
Third, they may not be sure that their donation will go to the cause they care about.
Fourth, they may not trust the organization enough to give them their credit card information.
Fifth, they may be worried about spam or fraud.
2) An influx of other text campaigns
The number of nonprofits using text-to-donate campaigns has increased exponentially in recent years. This is great news for nonprofits, as this type of campaign can be extremely effective in raising funds. However, with the increase in competition, it can be difficult for your nonprofit to stand out.
3) Subpar donation amount per transaction
Low average donation amount per transaction is one of the most common issues nonprofit organizations face when conducting text-to-donate campaigns. Several factors can contribute to this problem, including:
(1) donors not understanding how their donation will be used;
(2) donors not feeling a sense of urgency to give;
(3) donors not being aware of the campaign or how to participate. To combat these issues, nonprofits need to make sure they are clear about their mission and what donations will be used for, create a sense of urgency by setting deadlines or using limited-time offers, and make it easy for potential donors to find out about the campaign and how to donate.
4) Slow payments from carriers
One of the most common issues nonprofits face when doing text-to-donate campaigns is slow payments from carriers. This can be a major problem because it can cause a delay in receiving the funds that have been raised.
In some cases, it can even cause the nonprofit to miss out on important deadlines. There are a few things that can be done to try and mitigate this issue, such as working with a reputable carrier and having a backup plan in place.
5) Costly customer acquisition costs (CAC)
The major challenge nonprofits face is the high customer acquisition costs (CAC). To reach new donors, nonprofits must invest in marketing and advertising. This can be costly, and many nonprofits don’t have the budget for it.
Additionally, CAC can be difficult to track because there are many variables involved. As a result, it’s hard to know how much to spend on marketing and advertising to reach new donors.
6) Varying donation amounts
One challenge that nonprofits face when doing text-to-donate campaigns is that the donation amounts can vary greatly. This can be a problem because it can be difficult to budget for and manage these donations. Additionally, it can be difficult to track where the donations are coming from and how they are being used.
7) A lower-than-expected average donation amount
One challenge that nonprofits face when doing text-to-donate campaigns is that the average donation amount tends to be lower than expected. This can be due to several factors, such as donor fatigue or a lack of awareness of the campaign.
Additionally, some donors may not have the means to give more than a small amount. Whatever the reason, it can be difficult to reach fundraising goals when average donations are lower than anticipated.
8) Higher response time leads to lost donations
The average response time for a text message is 45 seconds, while the average response time for an email is 90 minutes. That means that if a donor tries to donate to a nonprofit through a text-to-donate campaign and doesn’t receive an immediate response, they’re likely to give up and move on.
9) The campaign seems spammy and opportunistic
Many people are turned off by text to donate campaigns because they seem spammy and opportunistic. The campaign comes across as though the organization is more interested in making money than helping people. This can be a major turnoff for potential donors.
Another challenge is that the message is often unclear. (five sentences): People want to know exactly what their donation will go towards and how it will help the cause. With a text-to-donate campaign, the message is often unclear. This can leave potential donors feeling frustrated and uninspired to give.
Another common challenge is that people don’t want to be bombarded with texts.
10) Not enough education about mobile giving
A lack of education is one of the main issues nonprofits face when trying to do a text-to-donate campaign. It can be difficult to convince people to donate via text if they don’t understand how it works or why it’s important. Make sure you take the time to educate your donors about mobile giving before you launch your campaign.
Text to donate campaign has been gaining popularity among Nonprofits and charity organizations in recent years. This type of campaign allows the Charity organization to collect donations via text message without asking people to donate through traditional methods like PayPal, credit card, or check donation.