Offer a Choice in Charity?

Article by: Katya Andresen, Katya's Nonprofit Marketing Blog

In the last of this week’s three-part series on research into consumer attitudes toward cause-related marketing, I want to focus on the increasing number of cause-related marketing campaigns that are designed to let consumers actively choose which charities a company supports.  Does choice in charity make campaigns more effective?  Do consumers like being in the social good driver’s seat?  And when can consumer choice hurt or help a company?

A new series of studies by Stefanie Rosen Robinson, Caglar Irmak and Satish Jayachandran of North Carolina State tackles those very questions.  And the findings, just published in the Journal of Marketing and covered by Cause Marketing Forum, include some interesting answers:

1. Consumer choice has a big positive impact on consumer donations.
In a field experiment that took place at a roller rink, popular sour chews were sold and adults were asked to pay whatever price they wished for the candy.  Half were told the skating rink was contributing proceeds of the candy money to a set of causes, with the rink deciding how much money would go where.  The other half were told they could choose which charity benefited from their purchase.  The four causes were chosen based on earlier research showing what types of organizations the parents would be inclined to care about moderately.  On average parents (and they were all parents – their kids were there skating) paid far more for the candy—$2.17—when they were able to choose from four causes.  They paid an average of only $0.72 when the roller rink determined how the money would be divvied up.

2. When the company chooses among charities, the fact there is more than one cause doesn’t matter much to the consumer.
In a lab study, university students were asked to choose if they were more inclined to buy a calculator from a company that “is giving a percentage of the proceeds from the sales of the calculator back to the community.” Participants got three versions of how that worked – that they got to choose from among four charities benefiting, that the company chose among four charities benefiting, or that the company supported just one charity.  In all cases 5% of the sales were donated.  Interestingly, people were more likely to buy the calculator when they got to choose the charity.  The interest level in buying the product when the company chose among charities or supported one charity was negligible.  In an interview with Cause Marketing Forum, study author Stefanie Robinson said this was her most surprising finding.  Whether a company donates to many charities vs. one charity may not matter.

3. Not all consumers are the same.
Another study covered in the paper found that some people are more collectivist, especially in Asian cultures, while others are more individualistic.  Collectivist people tend to put community needs above personal ones.  While you might think individualistic people are more inclined to like choice in charity, that wasn’t true in the research.  The most individualistic people don’t care as much about choice in giving.  Collectivists definitely do, though, because the choice makes them feel they have a greater role in helping and that involvement fulfills their caring about community.  Choice in charity is therefore more likely to influence their purchase decisions positively.

4. If there’s a strong fit between company and cause, choice matters less.
In a lab study, university students were told about a notebook for sale that benefited charity.  In this study, several variables were studied: consumer vs. company choosing among four charities – as well as a set of charities with a close fit to the product (four educational causes) vs. less of a fit (four environmental causes).  The researchers looked at how the variables influenced people’s intent to purchase the notebook.  Interestingly, when there was a strong fit between the company and cause, the consumer being able to choose the charities mattered less.  The students said they were less likely to purchase when it was up to them to choose than when the decision was left to the company.  Apparently, when there wasn’t a strong fit, study participants felt the company had a weaker CSR strategy and therefore wanted to influence the charity chosen.

5. If the social good goal is far off, choice matters less.
In most of the fundraising research I have reviewed, it’s clear that donors are more motivated to give when a campaign is close to its goal – and discouraged from giving if the goal seems far off or not achievable.  Turns out the same may be true with cause-marketing campaigns.  Consumers who were told that a campaign was only 20% to its goal were less likely to make a purchase when asked to decide which charity should be the beneficiary.  When they were told a campaign was 80% to its goal and they could choose the charity, they were more likely to purchase because they felt their behavior would have an important effect on the campaign.

Helping Your Participants Overcome Fear of Donor Fatigue

Article by Meghan Dankovich, Event360 Blog

Donor fatigue. If you're an event fundraising professional, chances are you've come across this problem a time or two (or a thousand). I have some suggestions on how to deal with it.

The fact is, donor fatigue is a legitimate concern for participants — especially those who have been doing your event for awhile. Some participants may feel uncomfortable asking a supporter to give for the sixth year running. Others may be squeamish about approaching someone who is unemployed or underemployed and perhaps struggling financially.

How should you handle participants with worries like these?

First of all, teach them how to "ace the ask," as I covered in a March blog post, "Preparing Your Participants This Event Season." Among the tips I shared then:

In order to get a donation, you first have to ask.

While it's an understandable fear, you can't be afraid of rejection.

When making an ask, be clear about your connection to the cause and why you support the organization.

Never assume you know whether someone will give or how much he/she will give.

To the above points, I'd add this: Be gently persistent. When someone says "No," "You caught me too late" or "I already gave somewhere else," reframe the ask and try again. For instance, a logical follow-up might be, "Would you consider giving up Starbucks for the week? That's $25 right there."

The fact is, there are all sorts of ways to deal with objections. Educate yourself on how — and then share what you know with participants who seem overly concerned about donor fatigue.

Sitting It Out This Year
A personal story about donor fatigue: I had done one fundraising event a few years in a row before deciding to sit out this year. Much to my surprise, many of my past supporters were disappointed.

What I learned — and what you should share with participants — is that long-time supporters come to anticipate an event each year. They value the cause and respect the participant's commitment, so they look out for the ask and even budget for it.

In my case, the cause means a lot to my supporters. In years past, I walked the event wearing a hat covered with the names of those who lost their battle with the disease. Many times, I've gotten requests for a photo of the hat.

I plan to wear that same hat in next year's event.

So when participants say they don't want to go back to their donor base this year, remind them that many supporters really will want to give again. Donor fatigue, as it turns out, isn't as scary as its reputation implies.

What are you afraid of?

Show Donors Results!

Donors would give more if you showed them…

... Results.

This, according to a study written up in the Chronicle of Philanthropy yesterday.  The Cygnus Donor Survey found in a survey of 15,000 donors that just crying need won’t do it in 2012.  Fundraisers need to “do something wonderful” that will carry a message to donors that the charity is fulfilling its mission, says the study’s author, Penelope Burk.

I always look at surveys of donors with a dose of skepticism.  What people say they feel and do with respect to giving doesn’t necessarily reflect their true actions.  But these results ring true to me.  It’s not enough to say times are tough and you need money:

Middle-age donors are demanding results from nonprofits in exchange for their gifts, the study found. They want to be offered a clear idea of where the money is going, and they want to know that the charity is the best of all organizations working on that mission. Donors under age 35, while also concerned about results, are interested in building a community of like-minded givers: They want to get their friends and family to support a cause they believe in. They are also more apt to give to new causes.

The bottom line: The same thing I always say on this blog.  Saying you need money is not fundraising.  Fundraising recognizes that giving is a person, emotion and social act.  Tell people about the exact change they can effect—and how they can rally support for it.  That’s fundraising.

Among the other findings:

-Donors hate being asked for money over and over.  That doesn’t mean you shouldn’t stop asking.  But be sure you’re thanking - and reporting on impact - at least twice as much.

-Young donors say they plan to give more this year. But you need to reach them digitally.  “They often don’t read fundraising mailings—because they’re the least likely of all adults to get mail. They also don’t get many telemarketing calls, because they use their cellphones rather than landline phones.”

-The number one source for checking out a charity?  The charity’s website.  This backs up the Money for Good research.  Make sure your website is fantastic.  It’s the single most important thing you do online.

-People plan their giving - but still give impulsively when something moves them.  That could mean you!

-Recurring giving gets dissed in the study, but I disagree.  The study said recurring givers are less likely to become major donors.  But is that because of the nature of recurring giving or because charities don’t do a good job heaping praise and reports on impact to those donors?  I’m a recurring giver to a great charity - but I don’t get thanked every month.

The full study is here.

Blog post by Katya Andresen

A Perfect Thank You

By: Katya Andresen, Katya's Non-profit Marketing Blog

My favorite nonprofit, A Wider Circle, set me a thank-you letter this weekend.  It started with the following quote.

“I truly appreciate everything you have given my family.  The household items aside, it’s the hope, the faith, the trust, and the reassurance that kind, caring and loving people still do exist.  I used to be the one that donated the clothes, the canned goods, and volunteered my time.  But here I was having to rely on the same from others.  It’s going to be a struggle for a while but we’re keeping our faith and staying strong.”  It was from Raeleen, mother of two, whose home was fully furnished by A Wider Circle.

This has all the hallmarks of a wonderful acknowledgement:
It’s heartfelt, it’s original, it’s emotional and it’s tangible.  And better, yet, it’s got the right messenger.

The inclusion of the words of someone helped by my donation is powerful, authentic and moving.  Not to mention relatable.  How many of us have had moments where we are reluctant to ask for help and understand the vulnerability that accepting it entails?  I not only understand the difference I made, I think I understand something of the person I helped.

I hope this inspires you, because there is no greater gift to a donor than a story of how they helped.

And if you’re stuck, here’s my template for a great thank-you.

Dear _________________   (use donor’s name, spelled correctly)

First: Don’t start with the typical “thank you for your donation!” Start with a vivid image or mini story of what the donor made possible, like the example in this post!

Second: Say thank you and give the donor credit for the impact of the donation and/or the specific program(s) supported.

Third: Express gratitude for the specific gift amount, noting the date and including any language on tax deductibility.

Fourth: Tell the donor when and how you’ll be in touch to let them know more about what their gift is accomplishing.  Include contact information – your email, phone and website – so they can stay in touch or reach out if they wish.

Closing: Thank them again and sign a real person’s name. If this is a mailed letter, include a PS with a nice added detail about a resource where they can find out more about the difference you are making because of their gift.

Do You Make These 4 Big Fundraising Mistakes?

By: Tri-Point Fundraising

Even intelligent, hardworking, well-intentioned fundraisers make mistakes from time to time.

We all do.

Here are four big ones to watch out for:

Mistake #1: Treating All Donors the Same

Do you wish that donors would treat your organization like the most important charity? If so, you should be treating them like your most important donor. That doesn’t mean sending generic form letters (either appeals or thank yous).

How can you treat your donors as individuals?

• Segment and personalize as much as possible. Have different letters for first time donors, for board members, for repeat donors, and for lapsed donors. Write personal notes whenever possible.
• Have a VIP, red-carpet plan for your best donors. Contact them (by email, phone, hand-written note, and in-person) with updates throughout the year. Invite them to your events and on tours.
• Find out why your best donors give to your organization. Try to understand their motivations for giving to your specific cause.

Mistake #2: Ignoring Lapsed Donors

Lapsed donors are former donors. They might have lapsed by one, two, or three years. It’s important to try to renew them as soon as possible. The longer they lapse, the more difficult it will be to get them to give again.

Once a donor lapses for a year or two, many organizations write them off. If you can, contact them to try to find out why they lapsed. If they moved out of the area or are no longer interested in your cause, you can take them off your list.

Often, reaching out to lapsed donors will result in another gift. Securing donations from lapsed donors is much easier than starting from scratch with non-donors. This is because lapsed donors have a history with your organization and already have a familiarity with your programs and services.

If you have a huge number of lapsed donors to deal with, select the ones who have lapsed for the least amount of time (two years or less), and/or those who have given several times in the past (not just one-time donors).

Mistake #3: Not Knowing Key Fundraising Stats

Specifically, this means not knowing your donor acquisition, donor attrition and donor retention rates.

Donor acquisition is the number of new donors you attract. Donor attrition measures the number of donors you lose each year (become lapsed). And donor retention is the number of donors you keep from year-to-year.

There are many fundraising statistics to keep track of. However, donor acquisition, attrition and retention are three of the most important stats. It’s crucial to know how many new donors you attract, how many donors you lost, and how many you kept on an annual basis. Without knowing these three things, you won’t know if your fundraising program is growing or shrinking.

So if you haven’t been tracking these things, today is a perfect day to start.

Mistake #4: Relying Too Heavily on Your Board

Do you rely on your board members to bring in most of your new donors?

You may wish for board members to constantly funnel names of wealthy, prospective donors your way, but too often it doesn’t happen that way. Don’t mope about it — instead, spend your time doing your part to attract new donors.

How do you attract new donors?

There are many simple things you personally can do to bring in new donors.

I (along with eleven other leading fundraising experts) was recently asked for several out-of-the-box ways you could get 100 new donors in just three months. All twelve of these recorded conversations have been combined with detailed action guides into a program called 100 Donors in 90 Days.

To give you an idea of how helpful thes simple strategies can be, Tom Ahern (one of the fundraising experts) presented a case study based on a letter written by a volunteer for a small town library. She was a novice fundraiser who had never written a direct mail appeal before in her life. But she had taken one of Tom’s workshops — one very similar to the first week’s session of 100 Donors in 90 Days.


She raised $56,000 in a matter of weeks with that one letter.


Tom’s teleseminar and action guide alone are worth the price of 100 Donors in 90 Days. Take a few minutes to check it out and see what it’s all about. I think you’ll be very impressed!

The five words that made women give 20% more

By: Katya Andresen

The philanthropic psychologist Jen Shang has a new fundraising study out with the public radio station WFIU in Bloomington, and it shows that five words tied to moral qualities prompt higher giving levels.

Here’s how the study worked.  During the station’s pledge drive, the people answering phones thanked people for calling and randomly picked two of five words associated with moral identity to describe the caller: caring, friendly, kind, compassionate and helpful.  For example: People said, “Thanks for calling and becoming a kind and caring WFIU donor” right before they asked the amount the caller wanted to give. Female donors gave significantly more—21% more—when they heard those adjectives.  Interestingly, with male donors, it made no difference.

I think most best practices are not gender specific, like telling a compelling story, making your cause relatable or appealing to emotion.  But moral identity is apparently another matter.

According to Shang, most charities find their donors are two-thirds female, so the implications are the technique could increasing the gift sizes of two-thirds of donors.  She is now testing this effect in direct mail, and she said in a Chronicle of Philanthropy interview that she believes she will obtain the same result.

The researchers also surveyed donors and found the more that women give, the smaller the gap between their ideal and actual moral identity.  In other words, donating money helps them achieve their moral ideals, said Shang.  Doing good feels good.

Shang believes the results of this study are reliable and transferable to other causes, so this may be worth testing in your nonprofit’s marketing and fundraising outreach.

Turning a No into a Yes

Asking for Donations: When Does “No” Mean “No”?

March 29, 2012 by Tri Point Fundraising

You’ve prepared. You’ve practiced. You’ve overcome your fear of asking for a donation. So you make the ask and they say “no.” But how do you know when “no” really means “no”? I tell my kids “no” all the time. Yet, it doesn’t stop them from asking again, and again, and again. They do this for a variety of reasons, but mostly becasue they’ve learned that sometimes “no” turns into “yes” if they ask frequently and persistently enough. So how come as adults, we’re much more likely to take an initial no as a final no? Turning a “No” into a “Yes” In fundraising, some of the best development directors are those who can take a “no” and turn it into a “yes.” When you get a “no” for whatever reason, your job is to ask why? That’s the most important question you can ask. Get to the core reason, and explore if there’s a way to turn the “no” into “yes.” Before asking a prospective donor for a contribution, you’ll want to consider all of their possible responses, so you’re prepared to respond appropriately. In general, there are three types of response:       1. yes       2. no       3. maybe In fundraising, “yes” and “maybe” are great answers, but “no” can be good too. “No” is an opportunity to explore, build the relationship, ask more questions, and encourage engagement. It’s up to you to find out why the person is saying no, and how you can turn their no into a yes. 4 Reasons Why Prospective Donors Say “No” There are many reasons why people say no. Four of the most common include: 1. Wrong time. Money is tight at the moment for whatever reason. Six months or a year from now might be better. Or, they could need more information before making a decision. 2. Wrong project. They love your organization. They’re really interested in the after school program — but you asked for the preschool program. 3. Wrong amount. You asked for too much or too little. Once you ask some good follow-up questions, you may be delighted to receive a gift of another amount. 4. Wrong asker. This is often the most difficult issue to identify, but it’s possible that your donor just doesn’t click with the board member you brought along. Keep your intuition tuned for issues like this, because they will often go unspoken. I’ll be discussing how you can turn those no’s into yeses and a whole lot more in my upcoming session at the International Association of Fundraising Professionals’ conference. Going Further There are some great posts around the web pertaining to this topic. Here are two of my favorites: When a foundation declines to fund you, the story isn’t really over Overcoming the 9 Fundraising No’s

A Receipt is Not a Thank You

By Joanne Fritz, About.com Guide
Last week, Blackbaud released a report about online giving for 2011. It continues to grow...up 13%.

Frank Barry, in a follow-up to the report, pointed out new donor acquisition through online channels is hotter than any other for charities; that online donors give more, on average, than off line donors; and that they represent higher household income than other donors.

So, why do nonprofits not worry about their online thank yous as much as their mailed thank yous? Why do thank you letters seem to warrant time and attention while the attitude toward online thank yous seems so nonchalant? This seems especially odd given that we also know that attrition for first time donors, especially online, is extremely high. Those donors are worth a lot, but only if we keep them.

Why do I even think that there is less concern about thanking online donors? Well, when I look at the stats for my content, I find that my articles about writing thank you letters (as in mailed ones) are some of the most popular content on my site. My material about online thanking barely registers on the meter. I also accumulate a lot of online thank yous because that is my preferred way of donating. They are not very good.

I'm going to guess the reasons:

• Many people in nonprofits don't think getting a thank you after making an online donation is all that important. Possibly they never learned the art of writing thank you notes. I hang out with a lot of folks who have grown children and grandchildren. A big complaint among this set is that their children and grand kids don't write, call, or even send a thank you for a birthday or holiday gift. Sure, the little kids are usually enthusiastic, getting on the phone or Skype and gushing their enthusiasm, but after about 13 or so....nothing.
• Many young people at nonprofits think that an online donor doesn't care much about a thank you. The donors are probably young, like them, and it just doesn't matter that much. After all, we don't expect IKEA to gush over us every time we buy a DIY bookshelf, do we? So...sending a brief, receipt-like online thank you is just fine. Who has time to read a thank you anyway when your email box is so crammed?
• But, many fundraisers do assume that a check in the mail means that the donor is probably from an earlier generation and is going to get mad if a thank you letter doesn't arrive in the mailbox. How do we write those again? God, will we be glad when everyone is online.
  Actually, it's a multichannel world for all generations. Older donors might respond with an online donation even when they got a mailed appeal; and online donors may switch to sending a check in response to direct mail after that first online gift.

That's why I was so happy to see Simon Norris and Juliet Richardson's article, Why thanking donors online is powerful, which is part of a white paper from the very smart consulting firm,Nomensa.

Simon and Juliet, I think, get to the heart of the matter: we confuse an online donation with a commercial online transaction when they are nothing alike. Simon and Juliet point out:

"The psychology of online giving is definitely not the same as online shopping and should be treated very differently. Thanking the donor appropriately is a key part of the donation process--donors need and expect more than a 'receipt' for their consideration and their money. In fact, there is a rule of thumb that donors should be thanked seven times before you ask for their next donation."

Simon and Juliet go on to cite powerful psychological research that shows just how motivating a good thank you is: donors who are thanked well are more than twice as likely to give again.

I'm pretty darn sure that these psychological effects happen to anyone at any age. Young people...the ones who might be sitting at the social media controls in your nonprofit...might THINK they don't care if they are thanked, but, in fact, they do. They just might not know it yet.

Thanking is a reward and a validation of a genorous act, as Simon and Juliet point out in their article. Donating is so different from buying that it is only that the two seem so alike online that the two transactions confuse people. Donating is altruistic, emotional, personal and expectant of engagement; while buying is calculated, narcissistic, and a one-off exchange. Really, the only resemblance between an online donation and an online purchase is the exchange of information and provision of a credit card number.

I love looking at a thank you letter as a 'reward.' When you buy a hot pink teddy from Victoria's Secret, the teddy in your hand is the reward. But, when donating online, the reward is the knowledge that you're helping, the thank you that lets you know you've done a good thing and are thus valued, and the promise of future engagement with this cause. Your post-donation actions are not an after thought...they are a bridge to the future.

Simon and Juliet connect thanking with the psychology of reward and point out that it involves three factors:

• Reciprocity. Donors are giving a gift, so telling them how valued that gift is completes the reciprocity loop.
• Expectation (and prediction). Donors have expectations about how they want to be treated; they will predict how they will be treated; and when expectation, prediction, and reward (the thank you) match, they feel valued.
• Reinforcement. A social relationship is set up when a donor is asked to give, he or she makes the gift, and when the gift is acknowledged. A good thank you reinforces this particular giving choice and motivates future giving.

Simon and Juliet have some very specific ways to make your thank you landing page and your thank you email reward your donors in a way that will engage, motivate, and fulfill their expectations.

Post donation landing pages can be designed to make an immediate impact, followed up by a thank you email that looks as little like a commercial transaction as possible. Follow Simon and Juliet's instructions, and you'll be a long way toward seeing and creating the differences that make saying thank you for a donation something special and that will get donors to come back for more.

Pay for Shipping?

Operation Smile continues to impress me.  Today's email campaign is trying to get donors to donate specifically to pay for shipping costs.  Shipping costs!?!?  Obviously, shipping costs are not usually something that is very glamorous or a campaign that donors typically gravitate to, but let's face it, it's a necessity in order to do what they do.  I love the way they worded things... simple and straight to the point.  Seems silly not to help them out, right?

Tell a friend

Katie, Help Ship 8X the Medical Supplies Every $1 that you give today helps ship $8 worth of life changing medical supplies.  Our volunteer surgeons are ready. Our corporate partners have already donated essential medical equipment and supplies. But, we need YOUR help to ship them, so we can forever transform the lives of children like Junior. Help other children like Junior from Honduras.

The Power of Social Media

Over the past five years peer-to-peer fundraising (aka social fundraising, event fundraising or friendraising) revenue has more than doubled online – reaching close to the billion-dollar mark.

It’s been amazing to watch.

With the continued growth of Internet usage, the rise of social media, and the smart phone revolution it’s likely that social fundraising will continue to play a significant roll for non-profit organizations (or start to play a growing roll for those organizations who don’t already participate in this type of fundraising).

Check out the below social fundraising INFOGRAPHIC. You’ll learn a bit about the industry’s growth, what drives the fundraising success and the power of Friends Asking Friends.

Tell Their Story

Continuing on with the importance of telling a story...

Here is a story put together by ABC about a 14 year old girl named Carly.  It's incredibly powerful.  Why don't nonprofits share the stories of their constituents like this?

I think it is crucial for all nonprofits to "interview" their constituents and help them tell their stories.  It is not only beneficial for the constituent and their family, but it enables them to potentially help many more people going through the same struggles they are.

If a nonprofit can take a constituent like Carly and communicate how your nonprofit organization is helping her and others like her, I can't imagine there is a better way to A - get out the mission of your organization and B - gather up more support and donations.

So make sure you are getting out there and gathering up the individual stories of your and how you are making a difference in their lives.  I can't think of any better marketing material.

See Carly's story - 10 minutes long but definitely worth it!

Where and Why People Donate

Such great data to share with your fellow fundraisers!  I can't get enough of these infographics.  Thanks to YourCause for putting this one together on the Top 5 of Where and Why People Donate their Time and Money.

52x52

I like to draw attention to fundraisers that catch my eyes.

This time of year, the fundraising campaigns are out full force.  Rightfully so, December is the highest giving month of them all.

But what about the other 11 months of the year?

Check out this new campaign that strives to get donors to donate year round... not just at the end of the year.

http://52x52.org/

How to appeal to all 6 types of donors

This week, Hope Consulting and GuideStar released the second part of the Money for Good research.

In their research, they have identified six common types of donor motivation:

What do all of these have in common?  Two things: Emotion and impact. If nothing else, remember this: Speak to the heart and show how you make a difference.  You’ll appeal to just about everyone. Katya's Non-Profit Marketing Blog By: Katya Andresen