Fans who attend the Rock the House gig, which will be staged at Harewood House, Leeds on Friday August 31, will be invited to text the word IGGY followed by their name and email to 88222.
The text will cost £3, which is donated directly to the Children's Society, and a prize draw will be held to find the winner. Runner-up prizes include backstage passes and signed merchandise from some of the bands playing at the event.
Lisa Quinlan-Rahmen, e-communications manager at The Children's Society, said: "The Rock the House audience can use their mobile phones to donate to The Children' Society instantly and easily to show their support.
"The text-to-win element, meeting Iggy Pop and other money-can't-buy prizes, is an added bonus that no other medium can offer so easily."
Robert Thurner, commercial director at Incentivated, said: "This is an imaginative use of mobile which harnesses the collective good will of concert-goers, and provides a shortcut for them to request and receive relevant information, and make instant donations in the heat of the moment."
Other artists appearing at Rock the House include Idlewild, The Young Knives, Sons and Daughters, The Sunshine Underground, The Horrors and The Dirty.