Fundraising Incentives - What works?

Fundraising Incentive Programs – The Carrot and its Many Forms Throughout the years, I’ve watched organizations struggle repeatedly with the question of what incentives to offer their participants in order to get them to fundraise (or fundraise more). At this point, I feel like I’ve seen it all, from water bottles to jewelry to salad spinners to flat-screen TVs. And I’ve observed how participants respond (good and bad) to what was offered to them — through surveys, focus groups, and simply watching their reactions as they pick up their “rewards.” If the hats and toasters you’ve been offering to participants haven’t quite moved the fundraising needle as far as you would have liked, or if you haven’t offered incentives but know that it’s a good next step in your fundraising strategy, this is the blog post for you!  So, without further ado, here are three insights to help you determine which “carrot” is best to dangle in front of your participants: 1. Don’t underestimate the power of recognition.  The military uses a very effective incentive model that features the awarding of medals. And similarly, the Girl Scouts use patches. It’s not that the medals or patches have anymonetary value — but the recognition that comes along with it is perceived to be priceless. In the world of fundraising, we’ve seen this kind of incentive system work better than any other — hands down. For one client, we developed a recognition program that awards tiny 1” buttons to participants who reach certain fundraising milestones. We found participants were thrilled when they received their $3K button and were even more excited if they were able to claim a $5K or $10K pin (which have identical actualvalue as the $3K pins, but have an even higher perceived value). This recognition approach is attractive for a number of reasons. Compare it to giving away a high actual-value flat-screen TV (which we see offered a lot). The pin costs you close to nothing, it can be easily topped as further goals are achieved ($3K becomes $5K becomes $10K) and, most important, it’s a badge of honor that gives fundraisers a way to brag about their commitment to your mission. It is for this last reason that we’ve seen people literally wait in lines to get such a reward. So, before you jump into an expensive prize program know that recognition program methods work and are usually more cost-effective. 2. The more unique, the more desirable. If you’re already implementing a recognition program and/or your participants tend to be more motivated by “stuff,” there are several things you can do to pack the mostperceived value into the stuff you are offering. The following will increase the uniqueness of your incentive, thus making it more valuable and desirable: Brand it. Adding your logo to an item makes it unique. Just make sure it can’t be purchased at your event or online store. (If a participant has to fundraise $200 to get it, but they can buy it for $20, guess what they’ll do?) Make it commemorative. Making anything in limited quantities or for a limited time only increases the value. Adding the event year to the item instantly makes it a commemorative item and sends a message that says, “come back again and collect them all.” Offer special access/opportunity. Leverage your relationships with sponsors and board members to offer unique experiences that only you can offer! Does one of your board members own a restaurant where you could host a top fundraiser dinner? Could your media sponsor offer a behind-the-scenes tour of the studio? 3. Be sensitive to relevancy. This concept of relevancy is pretty straightforward. I think it’s fair to guess that iPods and flat-screen TVs, while cool, are most likely unrelated to your event activity, let alone your mission. Instead, think water bottles for endurance athletes, branded picture frames for team events, and fine-dining gift certificates for gala goers. It’s really up to your own creativity (and perhaps your relationships with prize donors and third-party incentive companies like Turnkey and Summit) to decide what might make the most sense. It’s important to keep in mind that while products can’t embody your mission, they can do damage by reflecting poorly upon your organization. For example, consider that giving away unhealthy food to runners raising money for a health-related issue might make you seem out of out touch. A fully-paid trip to an ultra-luxury resort when you’re raising money to combat poverty might be perceived as insensitive to the people your organization is trying to help. Giving away electronics that aren’t donated by a sponsor may upset participants when they realize that the organization is covering the cost. In the end, a little awareness and sensitivity goes a long way. Keep in mind that you can’t please, or motivate, everyone with incentives — no matter how big or flavorful the carrot. So, that said, be sure to always give participants the ability to opt-out of receiving an incentive. And, to help you deal with those participants who do want their incentive, tune in for part three of this series where we’ll discuss efficient reward distribution. (Part one examined what you should consider before implementing fundraising incentive programs.) Jill Stewart is a Fundraising Consultant at Event 360. With 12 years of event fundraising experience, she has developed, executed, and managed robust, award-winning fundraising and communications programs for major non-profit organizations across the country. Jill holds a Bachelor of Science in Management from Purdue University and a Certificate in Fundraising Management from The Center on Philanthropy at Indiana University.