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Apple Maintains Ban on Donation Apps

February 26, 2011

Apple is not giving non-profits much choice in the direction they choose in the great “App vs. Mobile-Optimized” debate. The New York Times has recently run a scathing article criticizing Apple’s ban on mobile donations via apps, Donation Ban on iPhone Apps Irritates Nonprofits. The author writes:

“No one, including Apple, has data on how many nonprofits have created apps for the iPhone. Organizations like the Monterey Bay Aquarium and American Cancer Society have them, but none can be used to make gifts. Prospective donors instead are directed out of a nonprofit’s app and to its Web site, which the organizations say makes the process of contributing more cumbersome.”

According to Apple, having to jump through multiple hoops to send a donation is just fine:

“We are proud to have many applications on our App Store which accept charitable donations via their Web sites.”

Apple’s defense is simple: if an app is able to accept donations, who is in charge of managing and distributing these funds? Since Apple currently manages all App Store earnings, this would most likely fall into Apple’s lap. Yet, would this be so difficult? After all, they certainly were able to handle it when collecting Haiti donations through iTunes for the American Red Cross.

According to The New York Times, the real issue is Apple’s bottom line: they currently take a 30% cut of all App profits, but could not do the same with donations.

Regardless of the reason, charitable organizations are forced to either move to another mobile platform or send their app user’s to their mobile site. Neither could be considered a “win-win” scenario. The answer for most organizations lies in creating a mobile site that reaches a broad audience and can simply and effectively take mobile donations.