Raging All The Way To The Bank

April 23, 2018      Roger Craver

“I’m not a rageful person. But things going on right now have elicited rage. I’m very upset at situations people are being put in.”

That statement is from a respondent in a study released last week by Edge Research titled Reactive Giving: Understanding the Surge in Cause- Related Giving. Download the full study here.

The study explores the phenomenon of reactive giving, who reactive givers are, and why they are giving across different generations and political affiliations, and suggests how to hold on to them.

There’s no question that today’s political and social climate are helping drive younger and first- time donors to give to nonprofit, particularly to cause -related organizations.  The March For Our Lives is a recent and powerful  example.

While rage or anger triggers some reactive giving, the study indicates that  “hope and empowerment” are often the underlying cause for a donation. Among the two emotions “hope” accounted for 63% of the respondents’ motivation and “anger” fueled only 26% of reactive givers.

This is why the authors believe that the term “rage donating” or “rage philanthropy”are terms that are too limited for describing this phenonmenon . “While rage may have fueled the initial desire to give, it’s really a broader range of emotions that captures the true essence of this type of giving –sadness, hope, joy, empowerment, etc. We’ve decided the more appropriate term is ‘reactive giving.’

Key Findings Include:

  • “Reactive giving is real: Two-in-ten (21 percent) U.S. donors who contributed to causes in 2017 did so at least once because they believed current political events threatened causes or beliefs near and dear to their hearts.
  • “Reactive giving brought in new donors: Reactive donors were twice as likely to be first- time donors. Most reactive donors gave to issues, causes or organizations they had neversupported financially.
  • “Reactive giving crosses party lines:Those surveyed who donated as a reaction to current social and political events are disproportionately Democrats (53 percent), but still a third (32 percent) identify as Independents and more than one-in-ten (16 percent) as Republicans.
  • “Reactive giving brought in young donors:While every generation has reactive givers, younger donors were much more likely to have given this way. Nearly a third (31 percent) reported such a donation, compared to fewer than twenty percent among other generations.
  • “Hope and empowerment are strong emotions: While anger propelled some donors to take notice of an issue, the main reasonreactive donors cited for ultimately making a charitable contribution is two other emotions: hope (63 percent) and empowerment (58 percent). Anger fueled only 26 percent of reactive givers.
  • “Reactive giving benefitted progressive organizations the most: The main causes donors gave to revolved around anti-poverty, anti-hate, racial justice, LGBTQ equality, and environmental issues.”

Infographic Tells All

The study is accompanied by a dynamite infographic you’ll want to study and paste on the office wall.

Click to enlarge infographic.

Who Are These Reactive Givers?

Not surprisingly,  from a political persuasion standpoint the reasons for giving reactively differed between Democrat, Republican and Independent donors.

Democrats (48%) and Independence (53%) cited reactions to statements from Pres. Trump is the primary reason. Republicans cited an increase in attic attitudes contrary to their beliefs and values (45%) as the main reason for reactive giving.

Viewing the results from an ideological perspective progressive organizations and non- partisan organizations benefited the most from reactive giving.  In total, 62% of reactive givers gave to liberal causes and 30% gave to conservative causes.

But, as the study notes, “that said, 66% of all reactive givers also gave to non-partisan causes like poverty and homelessness. The main causes that drive reactive giving include poverty (24%) LGBT issues (19%) environmental conservation (19%),  and racial justice (18%)

Here are some additional findings from the study that may surprise you or at least alert you to opportunities:

  • More than half (54% of reactive givers have given to organizations/causes they have not supported before.
  • 31% of the new reactive donors come from Generation Z/Y (born 1981 – 2000). As the study’s authors note: “this is a huge opportunity for nonprofit organizations as they look to attract new donors and engage those donors over the long-term.”
  • Non-– white reactive donors were twice as likely as white reactive donors to respond to a direct request from a person or organization – – showing the power of direct outreach to this community. 20% of reactive givers are African – American, versus 14% of donors overall.
  • The area of the country with the highest percentage of reactive donors is the South with 40 of reactor percent reactive givers coming from the area that extends from Florida to Texas and as far north as Maryland. The Midwest comes in second with 22%, the West in third place at 20%, and the Northeast with 18%.
  • The study shows that oftentimes the “cause” is more important than the “organization.” Nonprofits need to prove their value to these donors to build loyalty over time, and keep them involved beyond the first gift.

Hanging On To Reactive Donors

Pam Loeb, Principal at Edge Research offers this advice: “it’s incumbent upon nonprofit organizations to engage these younger and first – time donors to show their investments are making an impact.”

Here’s some sound advice from the study’s authors on actions organizations should take to get the most out of their “reactive givers”:

“Reactive giving is an entryway for first-time donors to engage with an organization. It represented a significant growth spurt for many nonprofits. However, it’s essential not to lose the momentum of the donors’ initial reason for donating. Quickly nurturing a relationship with these donors will be essential.

“While reactive giving is real, it won’t be a sustainable strategy unless organizations are clear about how donors’ dollars are advancing the cause. We’ve seen this in multiple reports. Donors, especially younger donors, are not simply content to give dollars – they want to know how and where their dollars are being spent, and they want to know what impact their dollars are having. Create communications that share the successes and accomplishments of your organization – especially for these new donors.

“In being “donor centric,” organizations need to be strategic about channel preferences and targeted messaging. These data suggest that organizations should also be alert to the emotional triggers and real-life trajectory of donors.

“Going forward, the most successful organizations will offer the right combination of urgency with hope and progress to keep these donors invested and feel as if their efforts make a difference.

“With so many of these donations made to the cause not the organization, nonprofits need to be more deliberate about what their brand stands for, clear about their mission, and build a connection that doesn’t assume familiarity, but works to earn donors’ trust. “

Again, you can download the study, review the methodology and see all the graphics here.

What’s your experience with “reactive givers”?   AND… what are you doing to make sure they stick around?

Roger

4 responses to “Raging All The Way To The Bank”

  1. Alex Cooper says:

    Fulsome breakdown of the paper (that I admittedly won’t have a chance to read).

    Seems to me that the new trend in “rage giving” “reactive giving” whatever one chooses to call it, is really just a modernized term that highlights the larger issue of a communication problem that our sector has (which some suffer from more than others)

    Isn’t 99% of giving reactive giving? And always has been? We give to cancer charities when cancer affects a close loved one, we give to disaster charity when disaster strikes and we put ourselves in their shoes, we give to a duck charity because we grew up going to the lake feeding the ducks, we support our nieces fundraiser because we want her to grow to be a caring, empathetic thoughtful youngster, and on…

    Whether intrinsic or extrinsic motivating factors, we only tend to give in reaction to something meeting our past, current, values or ideal future self (ie. I’m the type of person who cares about this kind of thing and takes action). It’s all about that magical word you guys are always harping on: identity! We react when something affects or potentially could affect our identity and world view.

    Organizations need to take a step back and realize that reactive giving is the giving that has existed since time immemorial, and sort out their communications to really engage their donors about what their DONORS care about, not what the organization does. Then amplify those narratives for long term commitment to the cause when the donors have engaged.

    Great post.

    Alex

  2. Matthew Bregman says:

    Interesting post — and I love the infographic. Thanks.

    But I’m curious about the methodology. I downloaded the paper for closer examination but am still unsure of what was and wasn’t included. Are contributions to “right wing” (for lack of a better term) organizations included, such as the NRA, American Family Association, etc. — or whatever Fox pundits are pushing their viewers towards? In other words, I wonder if conservatives are as reactive/more reactive than progressives, but contributing to a set of organizations [perhaps not 501(c)(3)s] not encompassed in this study.

  3. Lisa Dropkin says:

    Great question Matthew. To answer on methodology, we used a national sample that was balanced to be census representative and balanced for party identification according to the most recent Pew Center data. Our overall donor sample was 26% Republican, 32% Democrat and 42% Independent/Neither party. But when it came to whether donors gave in reaction to the current political and social climate, our “reactive givers” look more Dem — only 16% Republican, 53% Democrat. Reactive givers who are Republican reported the most donations to faith-based and family values organizations. We hypothesize that if we had run the study a couple years ago we might a seen a larger cohort of conservative reactive givers than we did in 2017.

  4. Roger Craver says:

    Matthew, The methodology is described in the study. Here’s the verbatim description from Edge Research:” Edge Research conducted an online survey of 895 U.S. donors. A non-probability sample of adults aged 18+ was drawn from a national survey panel of over two million households. The sample was controlled to be U.S. Census representative, and qualifying participants reported that they had made a monetary donation to at least one nonprofit organization/charitable cause within the last 12 months (excluding children’s school, alma mater, and place of worship). Data were collected December 5-30, 2017.”