The 3 tests donors apply before they donate
At the heart of convincing or inspiring anyone to give to your cause, must be an understanding of why people part with their money for non-essentials.
The extensive psychology and neuroscience that has been applied to retail can be harnessed to help those of us who are selling ideas and ideals.
_____________________________________________________________________________Value exchange
Humans will part with something they value, in exchange for something they believe to be of the same, or greater, value.
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But what is value?
The tests we all apply to determine value (often unthinkingly) can be summarised like this:
Charitable donations fit squarely into non-essential, prompting the next 3 tests:
1. Desirable - do I want it; will it add positively to my life?
2. Affordable - do I have the money; what is the ‘opportunity cost’ of ‘buying’ this?
3. Reasonable - does the price match the value?
This thoughtful reluctance to part with something you value (money!) in exchange for non-essentials (a charitable donation) is the fundraiser’s most critical obstacle.
How do we harness the principles of value exchange to secure donors?
1. Desirable - I feel inspired/excited
When you’re buying something non-essential, you want it to make you feel good. A joyful purchase, with joy that lasts. Inspire people to want to be part of what you’re doing - to decide it’s important to them.
Example of Desire:
‘Desire’ could be falling in love with a neat idea that tackles more than one global problem that you care about.
For example, Ecosia plants fruit trees in developing countries, which is critical to the health of our planet AND creates jobs AND plentiful, fresh, affordable food.
2. Affordable - can I stretch to that?
Many charities are really good at setting a ‘shopping list’ of amounts so people can give according to their means. Context and making people feel fortunate/rich in comparison to others can change perception of affordability and encourage them to give more.
Example of Affordable:
‘Affordable’ could be realising that I used to spend £20 on coffee per week when I commuted and that it could pay for a homeless young person to have warmth and shelter for a week.
3. Reasonable - is this a good ‘bang for my buck’?
Does it past the ‘sense’ test - i.e. do I think it would cost about that much? Does that level of impact feel worth doing for me - i.e. will it make enough difference?
Example of Reasonable:
Coming together with neighbours to buy food wholesale for a local food bank, rather than everyone individually paying supermarket prices.
OR
Knowing that a generous donor is matching my donation, meaning my impact is doubled.
Conclusion
People are willing to spend money on something they want. Many people want positive change, so our job is to connect the dots for them; to showcase how our work is desirable, affordable and reasonable.
I hope this short guide helps you to harness some retail psychology to inspire even more people to support your work.
Add to the chat below to share how you are using these principles in your work and/or examples you think would inspire.
Ilana Jackman is a fundraising coach & consultant, helping charities to raise even more money to do even more good. Throughout the pandemic, she is offering free 1:1 clinic sessions. Email ilana@ilanajackman.com to book yours: