FAQ: SMS Charity Donations

How does Premium SMS Work?
Premium SMS works through a shortcode number (4,5 or 6 digits). The mobile user must first send an SMS as a request to receive the premium message, they then receive the reverse charge message which makes a deduction from their phone bill.

Do I need a keyword with my shortcode?
If you don't own your own shortcode, then yes you do. As shortcodes are expensive to maintain, a convention has grown up where they are shared by a number of users. In order to differentiate between campaigns and users, a convention has arisen which uses keywords at the start of the message.

How do shortcodes cost?
Dedicated shortcodes cost £750 set up and £750 per month to maintain. Keywords are charged at £250 per keyword per year.

Can I use the shortcode/keyword to run a competition?
Yes you can, but there are some strict regulations on how they work. If you are charging a user to enter a competition then you will need a lottery licence. Alternatively you can offer a free method of entry (such as postal) as well as PSMS donation route. You will need to close the competition at the correct time, and draw/announce the winners in the correct way. We can advise you on how to set this up and the correct copy to use.

What kind of response can I expect?
That's always difficult to say, but the response is often lower than expected. On the whole the largest numbers of text donations come from major publicity events such as TV, radio and sports events such as football matches. In our experience just putting the shortcode on a website, or general publicity does not generate a good level of response. If this is your only means of promotion we would recommend that you consider mobile as a marketing medium and a way of getting a call to action, rather than as a way to make donations.

How much can I charge for a premium SMS?
They are fixed in set amounts based on the value assigned to the shortcode: 25p, 50p, 75p, £1, £1.50, £3 and £5. You cannot mix and match different message prices, but you can charge multiples of messages within the regulation limits.

How much will I get back from a premium SMS donation?
Considering that there is VAT deducted and network charges, the payment is around 55% of the value of the SMS, although it increases with higher value sums.

But what about charity shortcodes? Isn't it possible to get 100% of the donation back?
Shortcodes numbered from 70000-70999 were recently introduced for charities, for which there is no VAT element (currently 17.5%). At the moment we can only make these shortcodes available on a dedicated basis at £750 per month. We are working to get the shared codes, but as yet we do not have them. With the donation outpayment, most of the mobile networks have issued statements to say that they are offering higher rates for charities. Unfortunately we do not have access to these higher rates as yet. We are regularly reviewing the situation.