Power Of Premiums
I’ve expressed reservations about premiums. But I basically conclude … let testing and rigorous analysis of the net long term value of premium-acquired donors decide the proper course for your organization.
With that proviso, I’m happy to forward this entertaining discussion of premiums — The Power of Premiums — from fundraising maven Denny Hatch. Get past what he doesn’t like about Obama’s fundraising premiums … the best advice comes at the end, in his ‘Takeaways to Consider’.
Tom
One response to “Power Of Premiums”
Behavioral Science Q & A
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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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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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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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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I take issue with the statement in the article that suggests premiums are almost a necessity because “many nonprofit organizations do not have the pulling power to succeed in their fund raising effort through a straight appeal solicitation.” My question would be, if a nonprofit is not able to raise money based on their cause alone, can that nonprofit really justify their existence?