Mobile operators benefit from charity SMS trend

Sourc: Telecompaper

Mobile operators are earning large profits from texted charity donations, the Financial Times reports. Orange, O2, Vodafone and T-Mobile take seventeen to 25 percent of texted donations in charges, which means that charities receive only GBP 1 of a standard GBP 1.50 donation, after taxes, according to the newspaper. For example, SMS donations for Samaritans runners in the London Marathon cost GBP 3, of which the charity will only get GBP 1.80. Capital Radio’s Help a London Child campaign, which included the warning that only GBP 1 of each GBP 1.50 donation would reach the appeal, raises GBP 120,000, including GBP 60,000 by text. The benefit to operators was GBP 10,000 plus an estimated GBP 2,400 in standard text fees.

The Institute of Fundraising’s chief executive, Lindsay Boswell, said that it would upset people to learn that operators are charging so much. O2 media relations manager Dave Massey said that the company received GBP 0.26 for every GBP 1.50 donated, in addition to an up to GBP 0.12 standard SMS charge during the Help a London Child campaign. He insisted that this was not profit, much of it going to cover costs. The other three major mobile operators said they charged a similar amount.