We’re In It For The Money
In a wonderfully refreshing, if somewhat immodest manner, Bank of America is touting what it calls “the initial reults of the most comprehensive survey to-date of the philanthropic behavior of of weathy Americans.”
The survey, conducted by the Center on Philanthropy at Indiana University and paid for by Bank of America, reflects the opinions of nearly 1,000 respondents with household income greater than $200,000 and/or net-worth of at least $1 million.
No surprises in this study that confirms most of the serious wealth and major donor research over the past decade. Nonetheless, the sheer scope of the effort makes it a 'must read' for strategically-minded fundraisers.
Before getting to the bottom line of the study, a kudo or two to Bank of America in the candor and openess department. Rather than try to camouflage this study as some charitably inspired, “aw-shucks-we're-just-trying-to-help” effort, the Bank makes absolutely clear that they're into this for all the right reasons: money!
And clearly they are. For example, Bank of America Family Wealth Advisors, part of the private banking division, focuses on the nation's wealthiest familes; and its Philanthropic Management division manages $30 billion in funds for more than 9,000 non-profits, foundations, donors and other philanthropic clients. They make no bones about their interest in philanthropy.
It's long amazed us that too many financial institutions and most non-profits want to pussyfoot around the issue of making money out of effective philanthropic management — especially given the immense size of the global market for good works and the money involved. Afterall, don't charities deserve the same or even greater skill when it comes to investing and money management and why shouldn't they pay for it handsomely.
So, our hats are off to Bank of America, both for their candor and for this study.
Below is a brief take away of the top line findings. But, don't take our word for it. Read their press release and the details in it.
Continue reading “We're In It For The Money”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 […]
Read Full Answer
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 […]
Read Full Answer
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 […]
Read Full Answer
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 […]
Read Full Answer
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 […]
Read Full Answer
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 […]
Read Full Answer