FREE 'DONATION BY TEXT' SERVICE, txt4giving

txt4giving a new text messaging and donations system for charities, is being offered free by London-based innovation company Formation.

The system is accessed through the web - so there's no need to install any software - and no charge is made for setting up the keywords and shortcodes for taking donations by SMS. Mobile phone users can donate to any charity set up on the system by texting to a premium rate number.

The donations by text will attract Gift Aid, because a clear audit trail is automatically stored.

This flexible system allows campaigns to be set up quickly, including the choice of sending an automated reply message to thank donors, provide more information about the charity, send relevant weblinks, as well as providing unique, numbered receipts to users.

The charity advertises a shortcode number for donations.

The donor texts a keyword to the shortcode number 60300. The texts cost the donor ��1.50 plus the standard network charge*, taken automatically from the existing credits on their mobile.

The donor receives an acknowledgement which is composed by the charity - for example: 'Thankyou for your donation, please visit our website to see how your money is being put to good use.'

Of the 150 pence donated, 17.5% (26.25p) is paid in VAT, the mobile phone networks take 39p This leaves 84.75p Formation take 4p, and 80.75p is received by the charity GiftAid of 28% (22.61p) is claimable. So each text donation is worth 103.36p

'Charities should be freely given the benefit of systems which have been developed for business. Text messaging is a powerful tool, ideal for generating charity donations. These donations can qualify for GiftAid as there's a clear audit trail. It's important that there's a system that both charities and donors can trust, which follows good practice. Transparency is vital as charities need to know exactly what happens with every penny donated, and we are completely open about the costs.'

*This procedure conforms to ICSTIS regulations

Note to editors
Formation has been developing web and mobile applications since 1994. The company provides messaging systems for business and the education and health sectors.