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Charity donations sent via text message will be free from VAT, under a new framework announced this week. Now when you donate to charity via text you will be helping your favourite charity.

In the past, only text donations to big charitable events such as Comic Relief had VAT waived. However, the Mobile Data Association (MDA), a not-for-profit trade association, has introduced new guidelines that will see charities receive an additional 15% on donations sent from a mobile phone.

The new framework allows mobile phone users to donate up to £10 by either sending a text message to their charity of choice (via a number know as a short code), or by using Payforit, a mobile payment service.

The framework has already been adopted by many of the main mobile network operators in the UK, including 3, Orange, T-Mobile, O2 and Vodafone. These operators will now pass the VAT they normally charge on text messages directly on to the charitable organisation.

However, in order for the VAT to be waived, donations must be sent to a charity’s short code – this is a dedicated number used for charity donations only. A short code will contain five digits beginning with the numbers 70.

Martin Ballard, operations director of the MDA, says: “Mobile is a powerful way for people to support and donate to charities and this development makes the whole process clearer for all parties.”

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