Are you following the research related to the psychology of money? It’s interesting to think about how we spend money, when we feel better or worse about it, how we save it (or not)… A couple of weeks ago I had the opportunity to hear Dan Ariely talk on this topic as part of the Power and Money series at Chautauqua. One of the most intriguing concepts to me was related to the pain of paying. If we want to do less of something, we’ll increase our chances of success by simply increasing the pain of paying. Conversely, if we want to encourage someone to do more of something (eat health, exercise more, save more, give more) we should find way to decrease the pain of paying.
As an example, several years ago I had a friend who was trying to take better control of his spending habits. He started keeping a log of every time he spent money. The goal was really to keep better track of where the money was going, but the simple act of writing it down (essentially increasing the pain pf paying) resulted in him spending less.
It’s interesting to mull over the implications for fundraising. Are there ways you can decrease the pain of paying for your donors?
The NonProfit Times had a great article about brain triggers and giving last week (see below).
Nonprofit News Roundup
I remember the day the towers came down. Going into work and trying to be a support to the homeless kids we were serving. Many of the kids had friends or family in New York City they were worried about, but being street kids didn’t want anyone to know it. Whether nonprofit or for profit, it’s not business as usual when something traumatic happens. This article explore ways to help manage the emotional culture people you’re responsible for.
Transforming Activism: Digital Era Advocacy Organizations | Stanford Social Innovation Review
Compared to traditional, single-issue advocacy organizations such as Amnesty International and Human Rights Watch, these groups are reactive, nimble, multi-issue, and membership-driven, They’ve used the Internet and mobile technology to mobilize thousands, both online and on the streets, like other digitally empowered social movements such as #BlackLivesMatter and the Arab Spring. But they differ in that they are establishing permanent structures of organizing and mobilizing. These digitally based activist organizations constitute a powerful new form of…
10 Ways to Build Donor Trust and Overcome Negative Views about Charities | Clairification
We’ve known for some time that whenever there’s a charity scandal, the bad behavior of one player can become detrimental to all. In the U.K what happened was a perfect storm of perceived over-solicitation and insufficient outcomes, exacerbated by a barrage of media that sounded an alarm about nefarious practices. Trust plummeted. A wake-up call, for sure. A recent debate about innovation and best practice has suggested that charities stop copying each other, leading to a host of “look-alike” strategies that begin to get donors ticked off. There are other ways to restore and build trust and loyalty. This author suggested 10…
Understanding Brain Triggers And Giving | The NonProfit Times
A test segment of 25,000 house file names (not high dollar names) had the dollar signs removed from the ask amounts on the reply form and in the letter. This small change increased response rate by 3 percent, gross income by 7 percent and net income by almost $5,000 on a mere 25,000 pieces. This is being retested in larger quantities to both low and high dollar names but it shows that some of the learning from neuromarketing can be applied to fundraising. So, let’s look at some other ideas based on commercial research…
Video packs a powerful SEO punch, has the ability to connect with people through multiple sensory input channels and is just about the best, most pure form of original storytelling. Websites are moving away from text and toward visual content and social media favors video content as well. It can be intimidating, but it’s also never been more possible for amateurs to create compelling videos — and most of us have a great camera with us at all times (iPhone anyone?). But where do you start? Dig into storytelling…
“…the word “you” is the most important word in fundraising. That’s fundamental to understanding the difference between organization-centric fundraising and donor-centric fundraising. In organization-centric communications, “we” is the favorite pronoun. It’s all about how great the organization is and all the things that we have done. “We did this. We did that. We were amazing. Oh, by the way, thanks.” This type of communication, which is far more common than you might think, shines the spotlight on the organization while leaving the donor in the dark.”
The 7 principles of #donorlove | Agents of Good
You can call it #donorlove, you can call it donor-centred, you can call it whatever you want. But Jen and I have discovered, as we travel around and speak with our fundraising friends, that very few of you (or them) are following these 7 very easy—but not simple—principles of #donorlove.
At its core, persuasion simply means getting somebody to understand where you’re coming from so well that they decide they want to believe it too. We need more of that in the nonprofit sector, especially when asking for donations. There are various instances where you’ll need to possess a persuasive quality. Basically, persuasion happens any time you’re trying to sell somebody on your organization. For example: Chatting with somebody at a fundraising…