Vodafone and JustGiving have shaken up the emerging text donation market by launching a free text-to-donate service which they say will open up the fundraising stream to charities of all sizes and income.

JustTextGiving, launched today, will provide capability for charities to receive donations via text message without any set-up or recurring fees, and without charging donors. Other similar services, many launched within the last year, charge monthly or annual fees and take a cut of donations of up to 3 per cent for processing the gifts. JustTextGiving will also process and pass on gift aid to the recipient charities.

Both registered charities and individual fundraisers will be able to set up free fundraising shortcodes from today.

Chief executive of Vodafone, which has invested £5m in this text giving service, Guy Laurence predicted that the service will transform the giving landscape. “Fundraising will never be the same again,” he said.

“Around 50 million people carry a mobile so the potential for charities and individuals to raise additional money is very real and exciting. Whether you’re watching a friend run a 5km or you’re at you kid’s school concert, you will now be able to give on the spot.”

Cancer Research UK and 20 other charities had signed up with JustTextGiving at launch, with the service receiving a ringing endorsement from the UK’s most successful fundraising charity.

“We are excited to see the impact this new service will have on growing the mobile donation market, not only in support of Cancer Research UK but also for all charities in the UK,” said CRUK’s director of supporter marketing Natasha Hill.

As part of its backing of JustTextGiving, Vodafone has also developed a free online pack containing material and advice on how charities can promote mobile donations to their existing and future supporters.