; Canadian FundRaiser Farm-Aid raised $500,000 with it in just 12 hours. A New York radio station said that its programming donations increased by 40 per cent with it. It’s the telephone companies’ new Advantage 900 service, quickly positioning itself to become a major player in the fundraising game. A convenient “exchange-of-payment-for-information” medium, 900 offers a host of applications from entertainment, polling, promotions and business services through to fundraising programs.
Available in Canada since April, 1994, the service boasts over 800 programs, 50 per cent more than originally projected. Ontario already has 140 programs running, and a backlog of more tha 200 applications waiting to receive approval. According to Nancy Major, associate director of Advantage 900, “We expect our service to grow by 400 per cent in 1995.” Given the effects of the massive image cleanup, stringent program regulations (sex lines are not allowed) and generally favourable press, the system is taking the Canadian marketplace by storm.
System can be activated quickly
The 900 service has enormous potential for charitable fundraising. Designed to immediately capture spontaneous donations, a real strength of the system is its ability to be activated quickly to provide emergency response. That was certainly the case at Oxfam Canada with their successful Rwanda Emergency Appeal.
The system is an effective addition, or an alternative, to conventional fundraising methods. Current system customer Dr. Wally Stonehouse of Care-Tel International sees the use of the 900 product “as a more gentle fundraising method than traditional telemarketing.” With 900, busy donors don’t have to take the time to write and mail cheques, and they don’t have the worries associated with disclosure of confidential credit card information over the phone.
An impressive mechanism for capturing the emotional response of Canadians, the service can be easily incorporated into existing systems and staff, and is a useful database building tool. Costs for the program vary depending upon the service options selected. Network-based programs have all calls terminating on equipment provided by Bell, while premises-based programs terminate calls on equipment located at the service provider’s. Charities may elect to use passive, interactive, or live programs — each have a different cost, in addition to usage charges and an application/approval fee.
How the cash flows
If a caller makes a flat-rated call for a $25 donation, and the call is three minutes long (premises-based), the caller is billed $25. Bell Canada bills and collects the $25 from the caller, and charges the charity 10 per cent of the billing — in this example, $2.50 plus $1.05 usage (at 35 cents per minute) — so the charity receives $21.45, remitted by Bell at month-end.
There are also some interesting service parameters, such as a maximum $50 call (charities set the amounts), and there must be an 18-second preamble to provide the caller with charitable and call information, as well as the opportunity to hang up and avoid charges. Access is restricted to collect, calling card, hotel/motel, cellular, coin telephone and WATS line callers. Nonetheless, 900 does provide another fundraising option that can increase donations, lower administration costs, decrease labour costs, and simplify collections. To find out more about Bell Advantage 900, call (800) 387-4441.
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