TEST RESULTS: You Raise More Money When You Listen to Donors’ Preferences

August 23, 2018      Kevin Schulman, Founder, DonorVoice and DVCanvass

We know that, given the options, many donors would give more if they could direct where their gift went (see, for example, here and here).

Yet restricted giving is a giant pain for most fundraisers.  You could end up in your finance department explaining yourself for the rest of your natural life (and some of your unnatural life, rattling the chains you forged in life as a warning for the marketers who would follow).

What if you could get most of the advantages of restricted giving without the disadvantages?

In fact, this technique was about as important as the trust validators we discussed yesterday.  So, by putting today’s post to workyou can compensate for your lack of a four-star Charity Navigator rating.

We looked at five conditions.  In order of preference:

#1 (tie) restricted giving and restricted giving + where needed most

No surprise here.  What surprised us was how close #2 was:

#2: preference in giving:

Note the slight change in copy.  Instead of saying your gift will go to X, you are simply saying what your highest priority is.  How close were these?  On a 100-point scale, restricting your gift was an 80; expressing preference was a 72.  Close enough, as they say, for government work.

#3: Allowing someone to choose their channels of communication:

We were surprised this only came in third.  Previous DonorVoice research has shown that giving someone control of communications is the most powerful tool you can use for getting people to opt in.  For more details on this research, check out this video:

(And you can subscribe to the DonorVoice YouTube channel here for videos like this)

So the fact that donor preferences, even non-binding ones, got a better result than channel control means that they are a powerful tool that can help lift response.

#4: Do nothing.  Not surprising that this comes in last place.

But Wait...

I hear you saying, “But wait. People may prefer to give their preference, but does it really make a difference in the real world?”

The American Diabetes Association tested this in acquisition.  Their control package had no ability to express a preference and their test version allowed someone to share their highest priority among:

  • Finding a cure
  • Helping patients and families
  • Providing access to care for diabetes
  • Supporting medical professionals

This test version had a $3.40 increase in average gift and a 11.6% increase in overall revenue.

That’s exactly how we how these test results from the DonorVoice / DMA Nonprofit Federation test will be used – as the seeds from which your own testing may grow.

Please let us know any results from your own testing on preferences so we can share with the Agitator Global Family.

Thanks,

Nick

5 responses to “TEST RESULTS: You Raise More Money When You Listen to Donors’ Preferences”

  1. Another great post! The past couple weeks have been Agitator solid gold.

    The channel preference option is one that I know is best left to the thank-you page and not on the giving page. Also, it’s important to identify the types of communication by channel because donors don’t trust you’re going NOT to use the billing information entered.

    Asking the donor on the giving page where the donor just gave their email and mailing address gives them pause because they may not want you to contact them using that information. The best option is to allow them to choose the channel, types of communication, and to enter in new information – like a different email or mailing address.

    I think the main reason why most organizations don’t do this is because of the limitations of the systems they use. It’s easy to setup the form to capture the options but using those options throughout campaign execution proves to be nearly impossible.

  2. Bethany says:

    Just to clarify: When they state their priority, do you try to send their gift to that thing? Or are you just surveying them on their priorities and then using it where needed most?

  3. For the #1s (restricted giving), you have to send their gift to that thing. For #2, where you are asking their preference/priority, you don’t have to. They are unrestricted funds and you can use them as such. That said, it would be best to acknowledge them for having the impact they wanted to have.

  4. Bethany says:

    Interesting. And that would pass muster with an organization like Charity Navigator?

  5. It should – there is no implication in the statement that you are restricting their gift in the preference scenario. Don’t know that CN measures this, but BBB I know does look at if restrictions are followed and this should pass their muster. Definitely have your own legal counsel look at it, though, for your comfort. My legal training has been largely Law and Order reruns…