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Obopay and Benevity leverage mobile payments to speed donations to Japan

UPDATED: Mobile payment provider Obopay Inc. and Benevity Social Ventures Inc., a software provider specializing in mobile and online donation software, announced a text-to-donate effort supporting areas in northern Japan affected by last week’s massive earthquake and tsunami. The effort combines Obopay's instant mobile payment technology with donation management, tax receipting and corporate matching functionality provided through Benevity. 

Donors can make charitable contributions from mobile devices by texting the keyword "Japan" to shortcode 48510. Users are then directed to a mobile payment site to complete the donation and receive an electronic receipt.

According to David Schwartz, vice president of product and corporate marketing, small charges covering administrative costs are added to each donation. The fees are 1.5 percent of the donation amount, plus 25 cents for donations under $10 or 50 cents for donations of more than $10. Schwartz said these charges are all clearly presented to donors when they complete their donations.

Additionally, 7 percent of donated funds will be used to cover costs for the organization distributing donations on behalf of Obopay and Benevity. The remaining 93 percent of donations will go directly to organizations helping with relief efforts.

In an e-mail, Benevity CEO Bryan de Lottinville said his company has partnered with the American Endowment Foundation (AEF), a registered charity and donor advised fund, to process and distribute donations.

Funds donated to the effort will be distributed to Doctors Without Borders, Save the Children and Americares.

"There is so much devastation there, and we recognize the need to get funds to Japan and in the hands of charities that can put them to work as fast as possible to save lives, as well as start the recovery and rebuilding process," said Carol Realini, executive chairman for Obopay. "Normal means of donating take too long to get funds on the ground."

Update: The information from Benevity's CEO was provided after the story was first posted.