Recently, we had a chance to chat with Jim Manis, the Chairman and CEO of the Mobile Giving Foundation.  Mobile Commons has been working with the Mobile Giving Foundation (MGF) to bring mobile donations to our 501(c)3 customers. Mobile Fundraising is new, and has tremendous potential to change the way that microdonations are collected and we’re excited to share the following interview with Jim Manis, the man who made it happen.

Jim, can you tell us a little bit about your background and how you came to start the Mobile Giving Foundation?

Sure, my background is inclusive of being a co-founder of a company called m-Qube. We were one of the first to develop the direct to consumer mobile content market in North America. We really helped pioneer the notion that it’s all about consumer control where the consumer—not the carrier—is deciding what they want, where, when and how they access information, content and entertainment. m-Qube was sold to VeriSign a few years ago who in turn has been a significant contributor to the Mobile Giving Foundation.

I have also been very active across the wireless industry, including serving as the Global Chairman of the Mobile Marketing Association from 2003 to 2006. We worked with application providers, media companies, ad agencies, content providers and the wireless carriers to establish standards for mobile application behavior and consumer protection.

While at m-Qube, I led an effort in partnership with the US wireless carriers and the CTIA, when both Katrina and the Asian Pacific Tsunami occurred to enable emergency relief donations with a 100% pass through using a premium SMS transaction on your mobile device. People’s response to the relief donations was amazing and underscored an empowerment that came with the ability for people to respond immediately – or by impulse – to such an overwhelming need. After m-Qube was acquired by VeriSign, I wanted to take what we’d done for those special events and make it available for all charitable organizations as part of my commitment to give back.

And what did you see as the main barrier to opening up mobile fundraising?

Well, what was missing was the operational layer between carriers and nonprofit organizations so that both parties could have confidence in the system and that the process itself enabled an acceptable rate of pass through to the recipient foundation. We also wanted to do it in such a way that donors and potential donors saw their phone as a viable and trusted way to make micro-donations. The Mobile Giving Foundation, as a 501(c)3, provides this operational layer.

Can you speak a little more about the operational layer and what that entails?

The operational layer facilitates the ability for nonprofits to interact with their donors through the mobile channel, regardless of what phone service donors use. The MGF provides the technical connectivity layer and the business agreements that transmit messages and billing events, and frames the standards and best practices by which money can be raised where a billing event occurs on the carrier bill. The Mobile Giving Foundation extends this operational layer to a broader ecosystem that includes application providers like you [Mobile Commons], the wireless carriers, and the nonprofit organizations. Fundamentally, it’s a way for nonprofits to reach their donors. Those donors are also customers of the wireless carriers.

We also make sure that all federal and state laws are complied with and donors get receipted. A big part of the operational responsibility is message delivery and the billing that allows the donor to make a $5 or $10 contribution that appears on the carrier phone bill. That donation gets remitted to the Mobile Giving Foundation and then we settle with the partner charity. When you look at the billing process and the messaging systems of each carrier, they’re very different. When you look at it from an operational perspective, we remove those complexities for nonprofits and application providers. We then provide a receipt to the donor for their contribution.

Why did you use the term micro-donations?

By definition, it’s a micro-donation because of the price point ($5 and $10) and means of conveyance on the carrier bill. When you start something new, it’s important to keep it simple. The Mobile Giving Foundation elected to go with a price point that is acceptable to all wireless carriers and try to keep some commonality around those price points as new giving programs go to market. As consumers become more educated, they’ll realize this is a mechanism to make donations and as those consumers become more comfortable, you’ll see more innovation around price points—but, there will always be a cap. This is one of many cost elements that show up on a consumer’s carrier bill.

Why did you decide to make the Mobile Giving Foundation a nonprofit?

There are several reasons. First, my goal is to help the wireless industry apply resources that support worthy causes. Second, I want to help establish a new level of efficiency using wireless resources and try to keep the overhead costs to nonprofits at 10% or less than the amount they raise using the channel. Third, I want this channel to be trusted by donors, charities and carriers. It seemed to me like the best way to provide end-to-end protection and accomplish these goals was to make the Mobile Giving Foundation a 501(c)3 with the MGF serving as an umbrella for the donation, collection, remittance and advisement process.

Can you speak to the direct responsibilities of the Mobile Giving Foundation in the approval process for fundraising programs?

The MGF certifies that a nonprofit meets the established criteria for mobile giving, and reviews and approves that a specific mobile giving campaign meets our standards and those established by other industry organizations such as the MMA. The processes used to create these standards and criteria include representatives from interests across the spectrum. It is important to us that the MGF helps ensure the integrity of mobile giving by focusing on clarity to donors when they are asked to give and transparency for donors when a gift has been made.

What’s the timing like in the approval process?

For the foreseeable future, it’s a manual process with heavy overhead. We are working within a system and with processes developed to support commercial premium transactions. NPO qualifications, campaign approvals, short code provisioning, billing system updates, application testing all currently translate to approximately an 8 week time frame. This will eventually get shorter as our own capabilities improve and our processes are streamlined.

Any Closing Thoughts?

I’m very pleased that we can make available a whole new fundraising channel to nonprofits, and just as importantly, help provide a channel for a new, younger demographic to explore, learn and give to causes of interest to them. I’m particularly delighted that the wireless carriers see the value of supporting this effort, and doing so on a no cost basis. They have been generous in helping pioneer this new channel. Of course, we love the fact that companies like Mobile Commons and others have stepped up and leveraged their technology in the giving space. Our collective efforts will literally help change to face of giving today.

There’s been good coverage of Obama’s Vice Presidential announcement all over the web (particularly GigaOM and the NY Times). While there has been some grumbling about the announcement coming a little late because CNN got the scoop, overall the Obama campaign is being lauded for their marketing savvy. At Mobile Commons, we think they are not being lauded highly enough for what they managed to pull off. Here’s why: the Obama campaign may have just pulled off the most cost-effective Get Out the Vote (GOTV) program in history!

In 2006, Mobile Commons’ platform was used in a study conducted by the New Voter’s Project, Princeton, and the University of Michigan. The results of the study were a wonderful surprise to us. In the table below, you can see cost per vote compared between various media:

Elections pivot on turnout and voter engagement. The main conclusion to be drawn from the table above: the more personal the communication, the more effective. The most personal form of communication, face to face interaction, has the highest mobilization effect. Text messaging is something mainly done with friends and—terse as it is—highly personal. For campaigns, mobile messaging provides one the most cost effective ways of engaging constituents with highly personal and interactive messaging. The Obama Campaign realized this and constructed the VP announcement to help them build critical mass with their mobile list.

Most elections are won by narrow margins and the game is finding the right population to help you swing the election. Mobile messaging has shown its ability to activate large numbers of people and populations that are often unreachable. The Obama Campaign has shown great ability to reach and excite younger voters. If you’ve ever watched young people text message, you know the possibilities for engagement and interaction are very high. Although all ages send mobile messages, the Obama Campaign may be aiming at the youth vote as its swing contingent.

What the Obama Campaign has done is secure a massive Get Out the Vote list that will be a more cost effective solution than anything else. Thus far, I’ve received a few broadcast messages and requests for my zipcode, which they’ve already collected. I’m anticipating locally targeted messages. The unknown is if the Obama Campaign will use their enlarged mobile list to also reach out more personally for increased voter engagement. As more and more campaigns embrace mobile, it will be thrilling to see the effect of even more personal correspondence and conversation that really take advantage of the usage patterns of mobile messaging.

Michael Bassik of MSHC Partners has been a pioneer in the use of mobile with his clients, notably the Human Rights Campaign. He’s been using Mobile Commons’ software to win Pollie Awards and is the recipient of this year’s Big Idea Chair Award from Yahoo! Recently, we had a brief conversation with Michael asking him about some of the highlights he’s had using Mobile Commons to build lists and achieve superlative response rates.

Q: Just to get started, how long have you been using mobile technology with your clients?

Michael Bassik: We began experimenting with mobile in 2005. We teamed up with a handful of local candidates to test the use of text messages to register voters in urban neighborhoods and university campuses. We recognized early on that mobile technology would one day have a tremendous impact on the electorate.

And what prompted you to make the jump and try mobile in the first place?

MB: Without sounding cheesy, we really believe in innovation. MSHC was the nation’s first microtargeting firm serving Democratic candidates and progressive causes. And in 2004, MSHC Partners became the first traditional political communications firm to open an interactive marketing practice. When we saw commercial marketers embracing mobile, we knew we had to try it out.

When you’re working with your clients on their media strategy, what are the best indicators that a mobile component would be a good fit?

MB: A strong, loyal activist base is a must. You bring your phone into bed with you. It’s with you in the bathroom. You take it on your vacations. As such, those signing up for mobile alerts are likely to be your most ardent supporters. You don’t need a ton of people to have a successful mobile program, but you most certainly need an enthusiastic following.

Second, there has to be a need for immediate or on-the-go communication. If your organization is dependent on happenings in the news cycle, mobile is likely a good solution. Or if your supporters aren’t the type to be in front of their computers all day, we’d consider mobile ahead of other interactive strategies.

Any great mobile success stories?

MB: We helped prove that text messages before Election Day can increase voter turnout. The power of this new medium to increase civic participation is really thrilling.

Ed. Note: Michael is talking about a study done by New Voters Project, Working Assets (now CREDO Wireless), University of Michigan, and Princeton to measure the cost of getting out the vote. SMS alerts proved the most cost effective.

Mobile Commons and Convio just completed a data-sharing integration, you were one of the first to take advantage of it with your client, HRC. Has the integration made a difference in your mobile programs and list size?

MB: Database integration between mCommons and Convio has given a tremendous boost to the HRC Mobile Action Network. We literally doubled the size of our list in under a month.

What about using mobile with other media such as outdoor advertising, print, and live events? What are some of the benefits?

MB: The best ways to generate mobile subscribers are with sign-up sheets at live events and on your organization’s website. Outdoor advertising, print advertising and announcements at live events have proven fairly ineffective acquisition tools.

But we expect this will soon change. As more and more people know what to do when we tell them to “Text HRC to 30644,” the more we expect live event announcements and advertisements to help drive sign-ups.

Other than sending out alerts, what other kinds of other mobile programs have you done with your clients?

MB: I think we’ve tried it all. We’ve sent alerts, petitions, patch-through calls, coupons and fundraising appeals. We even worked with mCommons to project incoming text messages on the screen at U2 concerns.

As a consultant, what are some of the benefits of using an on-demand software platform like Mobile Commons?

MB: The platform is very easy to use. The ability to send breaking news alerts in a matter of seconds sets it apart from any other mobile platform we’ve tried.

Any closing thoughts on mobile?

MB: We’re starting to see organizations use mobile to communicate with supporters during natural disasters. And we’re seeing candidates using their cell phones to send updates while on the road. The non-profit and political arenas have yet to experience a breakthrough mobile moment, but we know it’s coming soon and we’re happy to be along for the ride.

Hats off to the Democratic Congressional Campaign Committee for their fantastic use of mobile surrounding President Bush’s State of the Union address!   The DCCC ran a number of mobile programs around the event, but the award for Most Innovative has to go to their “George Bush Lie Detector” text messaging initiative.

Each time President Bush said something in his speech that the DCCC felt was untrue, the Dems sent their subscribers a “Lie Detector” text message that challenged the president’s assertions and provided their own perspective on the issue at hand.  Incredible – even while the president of the United States spoke uninterrupted to the Congress and the nation, his opponents were able to respond and get their own message out in real time.  The Democrats didn’t have to wait until the president was finished speaking in order to offer their rebuttal – they could do so point-by-point, in exact parallel with the president’s speech, and without even having to ask viewers to step away from their televisions!