Q: Question about premiums. I read Kiki’s article from May 8 about rewards, and my primary take-away is that I should thank my donors verbally with sincere appreciation and gratitude. And make sure they see the impact of their gifts. But my organization has been giving a premium to donors of $1,000 and up for quite a few years. I want to stop the practice because I think it’s expensive and shallow. But the founders feel strongly about it, and a few of their good friends that are in that group realllly love the cookies we send them. How can I convince the founders that we can do something different that is more meaningful, and transition away from this meaningless gift in a gentle way?
First of all, it makes a difference if a premium is contingent to the donation or not. Sending an item after a donation has been made without having mentioned it to the supporters beforehand is different to telling them they’ll receive an item if they make a donation. The first is a thank-you gift, which, in all fairness, still might not have a positive effect on subsequent giving but at least it doesn’t seem to have a negative one. The latter is quid pro quo and where the issue lies; people give money to get something which resembles more of a market exchange than a donation. From your description below, I’m not sure whether the cookies were contingent on giving or were sent as a surprise thank-you gift.
The type of gift is also important. If it’s something that relates to the cause, or that can be used as a symbol of their support, or it feels personal (like the cookies you mention), then the thank-you gift might just have a positive impact.
What now? Unfortunately, there’s no black and white answer for all organizations, all types of gifts, nor all supporters. So I’d recommend running some tests. Here are a couple of options:
- Test offering the choice to opt-out from receiving the cookies. This way you can monitor how many do want to receive them and satisfy their desire. You could actually introduce this opt-out choice in acquisition as well as for existing supporters.
- Run an A/B test were after the initial acquisition some supporters receive cookies, and some receive a personal letter expressing gratitude and showing them the impact their gift made. Then track repeat donations and see if there’s a difference between the two groups.
Once you have data in your hands, it’ll be easier to convince the founders that this practice isn’t helpful. Or, you might discover that it is and some really appreciate it. Everything is possible!
Behavioral Science Q & A
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