Monthly Sustainers vs. One-Time Donors? Finding Middle Ground

16-8-10_squareAHHHH, the sweet sounds of monthly sustainers. Committed and highly engaged monthly donors, whose gifts hit a nonprofit’s ledger with increasing regularity as more and more of them embrace autopay options.

No wonder nonprofits spend a lot of money and effort to acquire them; either directly from a prospect universe (often DRTV or face-to-face canvassing) or cultivated from qualified donor segments, which usually require a telemarketing component to close the deal.

In either case, it’s a labor-intensive, expensive exercise with a low conversion rate, but one that yields a high payoff.

Yet despite their potential, many monthly sustainer programs are intrinsically flawed: Continue reading

Creative Hack #2: Now vs Later

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It’s no secret we live in a society prone to instant gratification.

From a weekend binge-watch of Game of Thrones, to polishing off a whole pint of Rocky Road in one sitting, to impulsively tossing in that issue of People Magazine at the grocery store check-out, most folks naturally exhibit a preference toward short-term gain, even if they understand the pleasure experienced by delay might be greater. (Spreading one’s enjoyment of Game of Thrones over an entire season, for instance.)

Related to this phenomenon, losses are also experienced more strongly in the present. As a result, people tend to defer those losses into the future whenever possible, even if doing so might actually cost them more. One look at the credit card debt so many Americans carry confirm this fact. Pay for those noise-canceling headphones with plastic and start enjoying your music today, even though you’ll pay an exorbitant 22% annual interest rate for that pleasure.

How can this basic human behavior drive the act of giving in different ways?

One well-known international child relief organization tested this condition directly to their monthly donors in Sweden. As part of a routine fundraising campaign, the donors were contacted by telephone and asked to increase their donation.

A total of 1134 donors were contacted and were randomly split into two groups. The first group was asked whether they would like to increase their monthly donation today while the second group was asked whether they would agree now to increase their donation in two months. In both groups, credit card or EFT authorization was taken today.

The results were dramatic.

NowLaterGraphAnna Breman, 2009. Give more tomorrow: Two field experiments on altruism and intertemporal choice.

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The Great Fundraising Mandala

blog_pic_2-3-16_squareThe dynamics of successful direct response fundraising has been described as a three-legged stool: Strategy (analytics) drives Creative (tactics) drives Performance (data), from which Strategy generates analytics. That brings us back to the first leg of the stool.

Remove one leg from the relationship and the stool falls over. Simple.

But there is an inherent weakness in the simplicity of this construct. It leaves out the most integral component, namely the donor. More specific, his or her attitudinal and behavioral fabric.

After all, donors react emotionally and rationally — or not — to the strategically considered, tactically rendered communication sitting before them. That’s the reality behind “Performance,”  and it directly influences the direction of subsequent strategies and tactics.

Perhaps better to visualize the fundraising dynamics as a wheel, or, because of the cyclical, concentric, and interdependent nature of its components, a mandala (to borrow from Eastern philosophies.)

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