What Science Says About Fundraising

WHY PEOPLE GIVE

‘Martydom’ can lead to generosity.

As the ALS Association learned from last year’s ice-bucket challenge, donors often give more when they are asked to sacrifice: It’s called the “martyrdom effect.” But “martyrdom” campaigns aren’t best for charities that could raise money more efficiently in another way or if the drive is misaligned with the nonprofit’s mission. “It ultimately would be better for a group like Habitat for Humanity to have a house-building-athon than host a marathon,” says Chris Olivola, an assistant professor of marketing at Carnegie Mellon.

Donors crave prestige.

Giving is a social phenomenon, as researchers at the University of Oregon and elsewhere have noted. Donors who are publicly recognized for their gifts, even small ones, are more likely to give in the future, researchers at Yale have found.

Young donors bring their friends.

Researchers at the University of California at Berkeley and George Mason University say that even if young people make up less than 10 percent of a charity’s donor base, they can rally several times that many.

Older people without kids are likeliest to leave money to charity.

Research conducted at Texas Tech University found that such couples and individuals are five times more likely to leave a bequest than are those with children.

ENTICING APPEALS

Show who the beneficiaries are.

Organizations like ChildFund International present pictures of the children they are helping to feed, while DonorsChoose lets teachers explain specific needs they would like support for. “Charities often forget that people need a clear idea of what their gift is doing,” says Danny Oppenheimer, a professor of marketing and psychology at UCLA who studies charitable giving.

Tell donors that overhead costs are covered.

Researchers at the University of California at San Diego found that donors are 80 percent more likely to give if a nonprofit’s administrative costs have already been paid for. Donors prefer to support a charity’s mission, not pay salaries.

Run lotteries and raffles.

Researchers at the University of Chicago and the UC-San Diego discovered that door-to-door campaigns offering a chance to win something raised more money.

PITFALLS TO AVOID

Emphasizing the magnitude of a problem.

Donors respond better to the needs of one person or a small group, according to studies at the Universities of Chicago and Oregon. People feel less compassionate when confronted with big, hard-to-comprehend numbers that describe a problem.

Expecting people to be altruistic.

Most people give for selfish reasons — that “warm glow” they get from giving or the social rewards that flow from being a philanthropist.

Focusing an appeal on money.

A University of Chicago study found that donors would rather be asked to help solve problems, not contribute financially.

Counting on donors to give again.

“Donors really sit close to the exit,” says Brian Mullaney a pioneer of in-house experimentation and co-founder of Smile Train and WonderWork. “They often want a one-night stand, not a relationship.”

Making donors feel guilty.

People like to experience a rush when giving; browbeating them to make a donation spoils the chance for that good feeling, according to UCLA research.

Offering ‘premium gifts.’

Coffee mugs, tote bags, and other trinkets can spark thoughts of selfishness, Yale research suggests, decreasing the chances that donors will give.

WINNING FUNDRAISING DRIVES

Trumpet a big-name matching donor.

Use that name to draw in other supporters. People trust that wealthy people have the resources to find information about charities and pick ones that are effective, according to research at Yale. But the size of the gift doesn’t have much impact on other donors’ giving, according to several university studies.

Stretch out matching gifts.

Make sure they cover more than one campaign. Researchers at Yale found that using a match for several purposes can increase what a charity takes in.

Set limits.

Keep the overall goal relatively low, announce minimum and maximum donation amounts, and limit the length of a campaign. Behavioral economists at University of California at Berkeley found that donors will be up to four times more likely to donate if, say, they realize they have only 10 days to help a cause that matters to them. People give more readily if they feel that their money can help a charity reach its goal or successfully kick off a campaign.

Encourage donors to spread the word.

Offer incentives for people to share news of their gift online to entice their friends to contribute. A George Mason University study found that a donor whose gift was added to a small matching amount was more likely to share news of the gift, allowing the charity to reach more people.

Fall short? Give donations back.

For online campaigns that don’t reach the goal, return the money. Donors appreciate the transparency of such campaigns, University of California at Berkeley researchers discovered. It’s important for supporters to know that their money will be used in a specific way or else be returned to them instead of simply being poured into a charity’s general fund.

—Michael Anft