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Behavioral Science Posts

(Lack of) Speed Kills

When Amazon started, people were nervous about providing  a credit card number in hope that their books would arrive. (Don’t @ me, 25-and-unders, this was a real thing.)  Will my book arrive?  Will it be what I intended?  Is this whole Internet thing a scam? So a large part of Amazon’s infrastructure works to convince […]

Learn More April 5, 2018

The Value of “Random Amazement”

This week Nick and I deal with the critically important function of “Donor Service.” Let’s start with this fundamental question:  Do you really know what good donor service looks like? I sure hope so, because as we’ve reported before, nearly 20% of all donors who drop out quit because of lousy donor service. Consequently, any […]

Learn More April 3, 2018

WANTED: Fundraisers With Merger, Acquisition and Investment Banking Experience

New thinking and new approaches are fundamental necessities for survival and growth. Not because all “old” ways are bad.  Not all are.  And surely not because the next, shiny new thing is likely to be better.  It’s not. In a sector desperate for growth new solutions and approaches to financing must be explored.  Incremental change […]

Learn More March 26, 2018

Segmenting “Cost To Acquire” Using Identity

A couple months ago, I argued that cost to acquire (CTA) was one of only two metrics that matter in a deep, comprehensive way. (The other one, for those who like spoilers, was donor lifetime value.) And yet, CTA can lie.  If one acquisition mail package has a response rate of 1.1% and an average […]

Learn More March 22, 2018

Low Risk Approach to High Reward Discovery

Yesterday Roger outlined the failings of alleged-segmentation systems that aren’t customized to your organization. Today, I’d like to suggest a proven, low-risk approach to dramatic improvement through better segmentation. It’s hard to get away from the significant advantages that come with being a mature nonprofit brand: you can get very good at delivery, incremental efficiency, […]

Learn More March 20, 2018

The Taxman Cometh, Part 3: A Way Forward

We’ve discussed the nonprofit tax debate over the past two days; now it’s time to talk implications.  There are a few roads that lead from here, all with their pluses and minuses. Ignore the new rules.  Do what you’ve been doing.  Maybe people will still think their gift helps them on their taxes, even if […]

Learn More March 16, 2018

The Taxman Cometh, Part 2: Maybe the 2017 Tax Bill Won’t Kill Us All

Since I ended my piece yesterday the doom and gloom note of the existential threat to all philanthropy, this is an odd, or at least paradoxical,  piece to write.  But there’s some counterbalancing evidence that we may not be peering into the abyss created by the new tax cut law. Hope #1 is that donors […]

Learn More March 15, 2018

The Taxman Cometh, Part 1: The Downside of the 2017 Tax Bill for Nonprofits

We’ve had a few reader requests to talk about the nonprofit implications of the new tax bill. The trick in meeting this request is that 1) smart people on this issue disagree and 2) I’m not one of the people in #1.  So I’ll try to lay out the gloom and doom case today, the […]

Learn More March 14, 2018

Level Two Feedback: Using Feedback to Fix Your Systems

The YMCA thought they knew what their members wanted.  Then they asked their members.  The results, from The Power of Habit: “[T]he accepted wisdom among YMCA executives was the people wanted fancy exercise equipment and sparkling, modern facilities.  The YMCA had spent millions of dollars building weight rooms and yoga studios.  When the surveys were […]

Learn More March 8, 2018

Donor-Centric or Faux Donor-Centric? Check the Plumbing.

When it comes to donor-centricity/obsession/love/devotion/passion I fear many fundraisers talk a good game while ignoring the fundamental and routine practices that should exist in any organization that truly cares about its donors. Tom’s and my mentor John Gardner,  in his book Excellence defined the issue perfectly: “An excellent plumber is infinitely more admirable than an […]

Learn More March 6, 2018

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Ask A Behavioral Scientist

    Behavioral Science Q & A

    Q: As a designer who works with non-profits on fundraising strategy, I see the language like the following: “Our supporters help empower every girl, ensuring she has the resources she needs.” I do not think the word “help” is useful–I think “Our supporters empower every girl, ensuring she has the resources she needs. ” is much more engaging. Thoughts?

    Whether “help” is more engaging or not really depends on the framing and context. The word help can sometimes weaken the perceived agency of the supporter, making their role feel secondary rather than central (your point). On the other hand, help can also signal collaboration rather than implying full ownership of the outcome, which might […]

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    Q: We started offering a donor cover option last april 1. The data to date suggests this may be dampening giving.eg. those who say yes to donor cover have a lower average gift (based on analysis of 6000+ gifts). I’m wondering if those who give lower gifts feel more guilt and therefore say yes to donor cover or if the presence of donor cover is making people adjust (lower) their gift size to accommodate the extra 3%. Would love any insights you have.

    Great question! Here’s how behavioral science can help unpack what might be happening: Pain of Paying: Even a small extra charge can make giving feel more transactional than emotional, potentially reducing generosity. Fairness Concerns: Some donors might perceive donor cover as a surcharge rather than a contribution to the cause. If they feel the charity […]

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    Q: When writing an appeal, I waffle back and forth between writing “Your gift CAN…” or “Your gift WILL…” Any studies of which of these two words is best for an appeal?

    The choice between “Your gift CAN…” and “Your gift WILL…” taps into the psychological framing of certainty vs. possibility. Currently, there is no academic research directly comparing these two framings in charitable appeals. However, I suspect no framing is universally better—the outcome likely depends on your target audience and the campaign’s goal. Here are some thoughts: Certainty Framing – […]

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    Q: Do you have any insight on whether integrating an individual giving appeal with other comms from the charity in both appearance and messaging can uplift results? Or does the actual appeal become ‘lost’ for lack of stand-out?

    Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]

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    Q: Is there any research on response rate impact in direct mail when referring to a sustainer gift as ongoing or recurring (catching all frequencies) v. monthly or annual?

    I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]

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    Q: A major conservation nonprofit sends me lots of mail, many of which have on the envelope “time to renew” or “2nd notice.” I find this practice deceptive, especially as I haven’t given to said organization since 1997. It must be effective or they wouldn’t do it. But is it ethical?

    Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]

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