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Carriers Delay Paying Japan's Texting Donations

Julie188 writes "As the fallout from the Japanese earthquake/tsunami/nuclear meltdown tragedy continues to unfold, Americans want to help. We learned from the Haiti disaster that the easiest thing to do is to text a donation to our favorite relief organization. But, unlike Haiti, Japan's text-to-give donations will take as long as three months to get to the relief agency. And the company handling these donations, mGive.com, has not waived the transaction fees it charges relief agencies."

35 of 235 comments (clear)

  1. Surprised? by Nimloth · · Score: 4, Interesting

    And the company handling these donations, mGive.com, has not waived the transaction fees it charges relief agencies.

    These companies profit from situations like this. This is their business case. What did you expect?

    1. Re:Surprised? by cpu6502 · · Score: 3, Informative

      Just because you profit when you help someone, does not mean you have to be an ass about it, and delay the contributions by three months. [edit] Just noticed mGive is a NON-profit.

      I see Microsoft had to apologize too:
      "Microsoft apologizes for using Japan disaster to market Bing"
      http://www.networkworld.com/community/blog/microsoft-apologizes-using-japan-disaster-mar

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    2. Re:Surprised? by ProppaT · · Score: 4, Informative

      This is one of the reasons all the news outlets told people to wait until the smoke settled to donate to the relief effort. Profiteers sit around waiting for these types of disasters. Even if this isn't necessarily profiteer related, you should always know where your money is going when you donate and you never will with these "txt xxxxx to donate $10" numbers, unless they're spearheaded by someone like the Red Cross or another charity that has a plan outlined.

      --
      Wise men say, "Forgiveness is divine, but never pay full price for late pizza."
    3. Re:Surprised? by nomadic · · Score: 3, Interesting

      Right, so the accusation that they're unduly delaying the donations is a valid one. However, the accusation that they're following their business model, is not. Now you can criticize the business model as a whole on moral grounds if you wish, but arguing that they should waive the charge in this specific case makes no sense.

    4. Re:Surprised? by demonlapin · · Score: 3, Informative

      The delay is from the carrier, not mGive. Hardly surprising that mGive isn't going to process transactions for free (they have bills too), nor that they're going to wait until they actually get the money to send it on to the charities. Just because you service not-for-profit corporations (and mind you, "not for profit" just means that there aren't shareholders to get a share of the coin, not that nobody makes any money) doesn't mean you don't have to make money to stay alive.

    5. Re:Surprised? by _0xd0ad · · Score: 2

      You don't seem to understand how non-profit organizations work.

      A non-profit organization can still accept payment. It can still pay its employees. Its employees can even make a profit! The only thing that can't make a profit is the corporation itself. That means, if they're in the black at the end of the year, the money simply rolls into the next year. It isn't profit. It's just surplus. There are very tight restrictions on what they can do with the money. But paying their employees and buying equipment are certainly permitted uses of it, which is why it stinks of corruption when the people they're buying their technology from are simply themselves under the name of a different corporation, a for-profit corporation... mGive.com is a for-profit corp.

    6. Re:Surprised? by Intron · · Score: 4, Informative

      There are three parties involved here:

      charity like RedCross, etc - have not requested expedited funds according to mGive.

      mGive - is just the conduit from the wireless company to the charity. They are non-profit but supported by a transaction fee. Its unlikely they have enough cash sitting around to give expedited payments.

      Wireless company - Verizon, etc. They don't send the payment to mGive until you pay your wireless bill. Otherwise they are making a loan to the charity with no collateral. They DO have the cash, tho.

      With the money having to take 3 steps to get from you to the charity, 30-90 days is still quick.

      --
      Intron: the portion of DNA which expresses nothing useful.
    7. Re:Surprised? by characterZer0 · · Score: 5, Insightful

      With the money having to take 3 steps to get from you to the charity, 30-90 days is still quick.

      90 days was quick in the days of the Pony Express.

      In the days of 500ms ping times around the world, 90 days in incredibly slow. I understand that the money is not there until you pay your wireless bill, but that is 45 days or less, so anything over 50 days is very slow.

      --
      Go green: turn off your refrigerator.
    8. Re:Surprised? by Dahamma · · Score: 2

      As far as I can tell mGive itself isn't non-profit. Here's what I found (though information is sparse, so I could be wrong):

      1. Mobile Accord is the parent for-profit corporation.
      2. mGive is a for-profit subsidiary of Mobile Accord.
      3. The mGive Foundation is a non-profit 501(c)(3) corporation created to certify other non-profit corporations to use the mGive platform.

      I'm not saying that mGive isn't a great idea even as a for-profit company (most mobile marketing companies are disgusting IMO), but it would be nice for them to be more clear about their status. Just gleaning the above information took a lot more effort than it should have...

    9. Re:Surprised? by GooberToo · · Score: 5, Insightful

      Exactly.

      People are also suffering from massive ignorance about how things work here too. Firstly, texting DOES NOT donate money. Period. End of discussion. Texting actually PLEDGES to donate. Your carrier will never release uncollected funds based on a pledge, to which they legally could hope to recover transaction fees (which is far less than the pledge).

      So, once you pledge, via texting, that's all you've done. You've not actually donated any money. When you pay your billing, at the end of the billing cycle in which you pledged money, you actually have the option to fulfill your pledge. After the money is collected, your carrier will likely pay their collections at the end of their billing cycle. So right there, you're very reasonably out 30-60-days out.

      Once your carrier releases their funds, you're now looking at roughly another thirty days before that party actually gets organized, commits, and releases the funds to the cause.

      Also, what appears to be part of the confusion is traditionally, when you donate to a cause, you are not actually donating to a cause. Traditionally, you are donating to an organization in the name of a cause; whereby, the organization is free to do what it likes with the money it receives. So long as they donate something to the cause, they have fulfilled their legal obligation. This is true even with major non-profits like Red Cross.

      What also seems like a likely source of confusion is non-profit does not mean what most people believe it means. For whatever reason people tend to associate non-profit as being the preferred form of company for these types of things because all of their money goes toward the underlying cause. Realistically, nothing could be father from the truth. A non-profit only requires their profits to be re-invested into the corporation. That doesn't mean employees work cheaply or even for fair market prices. That doesn't mean executives are not paid huge salaries and receive massive bonuses and benefits. In fact, many non-profits donate exceptionally little to their causes, frequently as little as 10%-20% of their income. IIRC, with Red Cross, as much as 60-70% (I'm pretty fuzzy on that number but the point is, a good chunk does help others) of what is donated actually helps people outside of the Red Cross organization.

      Really this article should be called, "Damn you Net-30!"

    10. Re:Surprised? by nprz · · Score: 2

      The data is old, but according to forbes charities

      American Red Cross operates at 91% efficiency.
      And this site: http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=3277
      Puts it at almost 92%.

      Of course that doesn't mean they don't pay their CEO a lot. It says he makes $446k a year.

  2. So ... by WrongSizeGlass · · Score: 2

    So we should text F' You! to mGive.com?

    1. Re:So ... by eln · · Score: 3, Funny

      Good point. We should start an online petition instead.

    2. Re:So ... by ginbot462 · · Score: 5, Informative
      My advice:

      Charity Navigator or something similar. Reward efficiency (i.e. high % of dollar goes to actual cause). Sometimes though if you're trying to support a certain cause, it's hard to find a charity that ranks high.

      Really quickly I see:
      AmeriCares
      International Relief Teams
      Direct Relief International

      --
      Atlas Shrugged : Thematic Story :: Battlefield Earth : Organized Religion
  3. Why would any true geek text a donation? by xxxJonBoyxxx · · Score: 3, Insightful

    the easiest thing to do is to text a donation to our favorite relief organization

    Why would any true geek text a donation? We're geeks. We want what's most EFFECTIVE, not what's easiest.

  4. As someone who works in mobile payments... by Itesh · · Score: 5, Informative

    I wish there would be greater disclosure about this and many other things. It can take up to 3 months for the US, but some other countries such as Latin America and Asian countries not called China and Japan it can take up to 6 months. In the EU, some people don't have to pay their bill monthly, there are quarterly and bi-annual billing cycles. It's a shame, because if there was full disclosure many people would have donated via another method. Hopefully all this exposure will get them to declare this a "crisis" and get the funds moving immediately.

    P.S. Please be careful when giving your child a cell phone, it's as easy to buy virtual goods with it as a credit card and companies like mine have no way of knowing that you have given it to your child. If you would like to block these types of purchases, contact your local wireless company and have them remove "Premium SMS" from your child's phone. I wish all wireless carriers were forced to disclose this whenever anyone purchases a "Family Plan".

  5. Not only the carriers, also the NGO's by elrous0 · · Score: 4, Informative

    I've had a problem in the past with the Red Cross because they do not segregate donations to specific causes (or, at least, they haven't in the past). That means that if you make a donation to the Red Cross for the Japanese disaster, that doesn't mean that your money necessarily even goes to Japanese relief. And if there is any left over after their (often very limited) efforts, it goes back into their coffers--irrespective of how it was supposed to be earmarked.

    My grandfather always used to tell me that he would die before he ever gave to the Red Cross. When he was in Korea, the Red Cross used to show up and sell soldiers coffee and donuts (at a profit, no less). No money meant no coffee and donuts for you, G.I.

    I'm not disparaging their work (I don't know enough to comment on that). I'm just saying that they need to be much more upfront with people about where their money is actually going.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:Not only the carriers, also the NGO's by joelsherrill · · Score: 4, Interesting

      My grandfather always used to tell me that he would die before he ever gave to the Red Cross. When he was in Korea, the Red Cross used to show up and sell soldiers coffee and donuts (at a profit, no less). No money meant no coffee and donuts for you, G.I.

      My grandfather was in WWII and had the same feelings for the Red Cross for the reason. Never heard anyone else mention it.

    2. Re:Not only the carriers, also the NGO's by similar_name · · Score: 4, Funny

      My grandfather complains about everything.

    3. Re:Not only the carriers, also the NGO's by _0xd0ad · · Score: 2

      I'm pretty sure the "help" they were giving was more in the line of providing medical necessities. Selling coffee and donuts to the soldiers was probably considered fund-raising to help offset their real costs.

    4. Re:Not only the carriers, also the NGO's by mr_jrt · · Score: 5, Informative
      Good 'ol Snopes. http://www.snopes.com/medical/emergent/redcross.asp

      "There is truth to one of the rumors, however. During WWII the American Red Cross did indeed charge American servicemen for coffee, doughnuts, and lodging. However, it did so because the U.S. Army asked it to, not because it was determined to make a profit off homesick dogfaces.

      The request was made in a March 1942 letter from Secretary of War Henry L. Stimson to Norman H. Davis, chairman of the American Red Cross. Because American soldiers were fighting as part of the Allied Forces, matters had to be considered on a Force-wide rather than solely American basis. The Red Cross was asked to establish club facilities for U.S. servicemen overseas where Allied troops would be welcome. Because English and Australian soldiers were being charged for the use of such facilities, it was deemed unfair that Americans were to get similar benefits for free, especially in light of their pay already being higher than that of their Allied counterparts. For the good of the alliance, the American Red Cross was persuaded to exact nominal charges from American GIs for off-base food and lodging."

      ...so they don't seem to deserve the bad rap.

      --
      Boo.
  6. My favorite part... by Overzeetop · · Score: 4, Informative

    "Note, too, that when you typically text a donation, the organization receiving it has to pay a transaction fee which may or may not be passed along to you on your bill. The mGive Foundation is a non-profit, that charges nothing to certify a charity to the carriers. The carriers forward 100% of the donation amount to the charitable organization. But both the carrier and the similarly named "mGive.com" may still charge a transaction fee. mGive.com is a for-profit arm of the company Mobile Accord. It runs the technology involved in taking text donations (and performing other mobile fundraising campaigns for non-profits). In addition to setup fees and monthly fees it charges a per transaction fee of $0.35 + 3.5 %."

    So mGive Foundation - the one you'll probably find if you do an internet search, is a non-profit who will certify the charity and tell you that 100% of the donation goes to the cause, but mGive.com - a separate entity - is for profit and takes their cut off of the top, then forwarding the remaining "donation" to be sent along. Nice. I wonder which MBA thought that one up. Whoever he is, he's probably sitting on a beach somewhere safe, sipping a Mai Tai right now.

    --
    Is it just my observation, or are there way too many stupid people in the world?
    1. Re:My favorite part... by arf_barf · · Score: 5, Funny

      > Whoever he is, he's probably sitting on a beach somewhere safe, sipping a Mai Tai right now.

      Where is a Tsunami when you need one ;-) ?

  7. Could be worse, could be eBay Giving by ackthpt · · Score: 5, Interesting

    The day the Tsunami hit I scampered out the door to give a pint of blood. Later that day I thought of putting a item on an eBay auction to raise some fundage for American Red Cross. Ebay listing page allowed me to pick a charity and a percentage to go there. Wonderful. The listing was published and had a big banner about the Red Cross added to it.

    After the auction ended the trouble began. The buyer paid and I found the money sitting in my PayPal account, with their customary cut removed from it. WTF?!? I drop a note to PayPal that this must be some sort of error, the money should have gone straight to American Red Cross. No reply, typical.

    Then I get on the online support with someone and tell them about it and ask them to send the answer to my email (the one I provided) and again I get nothing. Bother.

    Finally over the weekend I spend 2.5 hours waiting through the queue for help by apparently the only on-line customer support person they had working (this smells like the business model: we have few complaints to our customer support so satisfaction must be nearly 100%, but I digress) It is finally explained to me that I had to set up a Mission Fish account first so the payment would have been routed to them. Excuse me? You let me list an item where 100% was to go to a registered charity, but didn't establish a precondition of publishing the listing that the Mission Fish account be set up first, while the charity logo and mission are splashed all over a listing - yet the payment for it can completely bypass the charity? Hello, this looks like enabling Donor Fraud.

    I finally have had enough of their stupidity and go over to American Red Cross website and donate directly, including the sum I received for the auctioned item. I'm beside myself with the stupidity of corporations, but with eBay this is nothing new. Since 1999 they've gone from good to bad to worse.

    Be wary of donating via eBay. No guarantee the funds you pay do go where you think.

    --

    A feeling of having made the same mistake before: Deja Foobar
  8. Re:Immediate donation processing at philanthroper. by DocSavage64109 · · Score: 3, Insightful

    I like the typo in the link. That's exactly how profiteers work -- by praying on the unwary. By the way, you can also paypal donations to Docsavage64109@gmail.com

  9. Japan by Anonymous Coward · · Score: 2, Insightful

    Japan is a rich, technologically advanced, first-world country. I feel very bad for the people who have been affected by the recent events there, it's truly awful... but there are so many poor countries with horrible conditions, lack of food, basic human rights... who need money much more than Japan. ALL THE TIME.

    If you really want to help Japan, go there and start digging through the mess and help them rebuild. If you want to donate money, donate to someone who actually needs money. Or donate in general to the Red Cross or other groups, without earmarking your money for Japan where it will sit for months or more, while thousands of people die of starvation in other parts of the world, maybe even in your own damn country.

  10. Re:Vultures by Kral_Blbec · · Score: 2

    like doctors, policemen, morticians, gravediggers, plumbers and lawyers?
    oh wait...

  11. doing a father ted? by DMoylan · · Score: 2

    the money was just resting in my account.

  12. Coffee and Donuts by StikyPad · · Score: 5, Interesting

    The Red Cross sold coffee and donuts instead of giving them away to military personnel during World War II.
    This unfortunate policy came into being because service agencies in Britain helping British military personnel were less well-financed than the American Red Cross. Thus, these agencies were forced to charge British military members for the same items that American service members were getting free from the American Red Cross.

    To avoid further embarrassment to the British, who were playing host to thousands of U.S. troops, the U.S. Secretary of War requested that the American Red Cross begin charging American service members for such items as coffee and donuts in its canteens. The Red Cross interpreted this request as a wartime demand and complied so that it could continue aiding U.S. troops. However, the Red Cross sold items at or below cost and never profited a penny from these sales.

    Since the end of World War II, the American Red Cross has not charged military personnel -- not in the Korean, Vietnam, or Persian Gulf conflicts, for example.
    -- http://www.redcross.org

    1. Re:Coffee and Donuts by elrous0 · · Score: 2

      As I indicated in another post, I think if was their dual nature as a charitable organization and (perceived) for-profit vendor that really irked him.

      And, yes, he could have been mistaken. But he seemed pretty adamant that it was actually the Red Cross running those trucks (and by "adamant" I mean don't get him started unless you wanted to hear him yelling for several minutes about where the Red Cross could stick their goddamn bloodmobile).

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
  13. Re:Internet! I Choose You! by LurkerXXX · · Score: 2

    No, what the internet excels at is spreading of myths and FUD by people who can't be bothered to get the basic facts straight before 'going viral on some punks'. This is a nice example of that. Read the post above yours.

  14. Re:Corporations by bws111 · · Score: 2

    The 'delay' seems to be the time between someone texting a donation, and the time the carriers give the money to mGive. The guy from mGive says that is 30 days. Are you suggesting that the carriers are earning interest on a text message? Until you pay your bill the carrier does not have the money, so they are not earning interest. It seems like what you really expect is the carriers to make an interest-free loan to mGive on your behalf, until such time as you get around to paying your bill. If you want to send money to someone in a hurry, texting is a pretty dumb way to do it. Fortunately, Japan does not need the money in a hurry (they need lots of help, but lack of immediate funds are not the problem).

  15. Re:This is why I never donate by mcmonkey · · Score: 4, Funny

    That's rather unfair. I'm a volunteer myself and often give. I usually do it directly, which is the best way to see it gets where it's needed.

    Whenever I donate to the local single mothers and young women working their way through college, I always do so directly. I usually place the dollar right in her g-string, which is the best way to see it gets where it's needed.

  16. Re:This is why I never donate by iceaxe · · Score: 2

    Cynicism, like optimism, is rarely completely correct. The reality almost always lies somewhere between the extremes.

    There are certainly scammers, opportunists, and fraudsters in the world, and always will be. However, this is a minority in the 'emergency relief' field of endeavor, as well as most other forms of charitable organization. The people who create and operate the vast majority of these orgs are doing their imperfect best to help people under often very difficult and never simple circumstances.

    It's also impossible to take donations and convert them into goods and services in the needed locations without any overhead. There are costs and delays involved in organizing, transporting, an distributing things, and that doesn't magically disappear when you are doing it for charitable causes.

    If you still think that most charities are wasteful and are just scams, I'd invite you to experiment to validate that hypothesis. Find a handful of local charities, and go see what they do - or even better, donate a bit of your time and energy. In almost every case, you'll find that the organization is squeezing every bit of good that it can from every centavo donated, doing it with the cheapest possible equipment and facilities, paying as little as they can for the labor required, and always falling short of what they would like to accomplish. All while being jeered by the lazy, selfish cretins on the sidelines. If you know of a more efficient, lower cost way of accomplishing the mission, they'll be overjoyed to hear about it.

    The fraud artists and opportunists should be exposed and eliminated whenever possible. They are not only diverting resources away from the need, they are also causing a reduction in the willingness of the general public to fund legitimate organizations. Don't let anecdotal evidence persuade you that the exceptions are really the rule, though.

    And last of all, don't use cynicism as a smokescreen for your own laziness and selfishness.

    --
    WALSTIB!
  17. Mobile donations, "Shakey" by curado · · Score: 2

    Donations sent to the Twitter user "ReallyNotAScam" are taking forever to get to their intended recipient, Japanese aid victims. Hmm, go figure. www.redcross.org didn't seem like a safe place to send my donation so I texted it to a 900 #.