September 6, 2017 | Read Time: 2 minutes
The Theory
A donor with a large bank account is a good find for any nonprofit. The challenge is figuring out how to maximize the gift potential from these prized supporters.
A request touting the benefits of uniting for a common cause might persuade some to give. But for the wealthy, highlighting a donor’s ability to make a difference as an individual may be more effective, two researchers found in a recent experiment.
“When you have more money, you tend to think about yourself in more independent terms,” says Ashley Whillans, a Harvard Business School professor and co-author of the study. “You tend to think about your own individual actions and prioritize the achievement of your own personal goals.”
The Test
During an unnamed university’s annual fundraising campaign, Ms. Whillans and Elizabeth Dunn of the University of British Columbia tested two messages on 12,000 alumni. One batch received an appeal that entreated potential donors to “join your community” and give. The other pitch said that “sometimes, one person needs to come forward and take individual action.”
Results
The researchers assessed the impact of both messages in two income categories — roughly, ZIP codes where median income was above or below $70,000.
The pitches were equally effective at attracting donations, drawing similar response rates across income categories. But in the wealthier ZIP codes, donors who received an “agentic” message — one that stressed the need for individual action — gave $161 more on average than those who received an appeal stressing communal activity.
Digging Deeper
There was little difference in response among test subjects who hadn’t given much to their alma mater before. But donors who had given at least $6,000 in the past — showing that they could make large gifts — responded better to pitches that emphasized the pursuit of personal goals.
Find It
“Agentic Appeals Increase Charitable Giving Among the Affluent” is a working paper by Ashley Whillans, an assistant professor of business administration at the Harvard Business School, and Elizabeth Dunn, a psychology professor at the University of British Columbia.
