Psychology Of Giving Hacks To Hit The Fundraising Jackpot

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The psychology of giving hacks dictates that you must go beyond just asking for a donation at random. How you ask for that donation, when and where, can make all the difference. Psychology is crucial in nonprofit fundraising, as understanding human behavior, emotions, and decision-making can significantly impact donor engagement and contributions

Nonprofits that leverage psychological insights can create campaigns that not only resonate emotionally but also drive measurable results, ensuring their missions are better funded and more impactful.

Here’s a simple example of how psychology can change your donation rates. When HelpAge India asked for donations in every thank you note they sent, they got fewer donations.

But when they only asked for donations in thank you notes to those who had donated over a year ago, donations jumped 10%.

Why? People need time to ‘forget’ the warm glow they got when they donated to charity. Those with less glow donated more.

We will discuss such donor mentalities and how you can overcome them, in the article below.

Why do people donate?

Why people donate goes far beyond “wealthy people willing to help those in need.”

Internal factors such as the individual’s values, a higher degree of empathy, and altruistic motivations are associated with increased charitable giving. Social psychologists have used altruism to mean concern for others, such as the presence of prosocial values. Economists have defined ‘pure altruism’ as concern for a given public good or outcome, often complemented by a ‘warm glow,’ a psychological benefit from the act of giving in and of itself.

Psychology_Of_Giving_Hacks_statistics — *Image: A survey about why people donate. Source:* *NPOInfo*

Things like a person’s identity also affect how they make decisions about donating to charity. For example, one large study found that family (e.g., parent, sibling), geographic identity (e.g., national, regional, state), organizational identity (i.e., the organization they are giving to is part of their identity), religious identity, and friend-related identities (e.g., friendship groups) are among some of the most mentioned identities among individuals when describing why they give to a charity.

The influence of any particular identity can vary over time depending on several factors. So instead of trying to focus the nonprofit’s appeals on a single identity, more success is achieved if you focus on ‘how’ the appeal is made, thereby attracting all those who enter your target group at various times and for various reasons.

This will increase donations but in a scattered manner. You have to add the following hacks for a more targeted approach.

Psychology of giving hacks: What do the studies say?

Before you begin applying the psychology of giving hacks to specific kinds of donors and situations, you must first make sure your messaging is optimized overall – in language, style, and even in the background technology used to send it across. Make sure you are following these suggestions in all your messages:

Emotional Appeals: Studies reveal that emotional storytelling can increase donations by up to 55% compared to fact-heavy appeals. A nonprofit appeal letter should be more literature than statistics.
Social Proof: When donors see that others around them are contributing, they are more likely to do the same. Campaigns that display donor lists or progress bars experience a 12% to 25% boost in participation.
The Reciprocity Effect: Offering small tokens of appreciation (e.g., thank-you cards or gifts) can boost donation rates by 20%. It abides by the age-old adage “Givers Gain.”
Loss Aversion: Framing a request in terms of potential loss (e.g., “Without your help, this program might end”) can be more motivating than highlighting gains.
The Power of Personalization: Emails and appeals that address donors by name and reference past contributions yield a 57% higher response rate than generic messages.

For a more rigorous and methodical approach, consider adding the hacks below to your donation requests (which are already personalized for the donors).

Psychology of giving hacks you can use

Beyond the basics, as you target specific kinds of people, you will have to try different ideas from the psychology of giving hacks. They won’t all work together. Depending on whom and when you are making your appeal, ensure one or two of these hacks enhance the message.

Psychology_Of_Giving_Hacks_donations_giving — Image by StockSnap from Pixabay

Let the beneficiary speak

Research shows that donors are more likely to give when they see the tangible impact of their contributions. For instance, providing clear information about how donations will be used or showing a thank-you note from the recipient increases donor engagement and repeat giving. Presenting a single, relatable story about someone helped by the nonprofit elicits more empathy and giving compared to large-scale, impersonal data.

This aligns with findings that emphasize the emotional reward donors feel when their contributions seem meaningful and impactful.

The martyrdom effect

A study by Olivola and Shafir revealed that people are often more inclined to donate when they need to put in effort or sacrifice for a cause, such as participating in a charity race or volunteering at a soup kitchen. This psychological effect suggests that effortful giving enhances the perceived value of the act, motivating higher contributions. So, hold events that require people to do something – a marathon, cleaning, helping out in a food kitchen, etc. Even if fewer people show up, the donations will be higher.

Stress on peer pressure

Experimental studies have found that public recognition and the potential to enhance one’s reputation encourage donations. For example, donors are more inclined to give when they know their generosity will be acknowledged publicly.

This also applies to their peer groups—something we here at Callhub have seen through our Peer-to-Peer texting and Relational Organizing. When volunteers ask for donations within their contact lists and networks, donations tend to be higher.

There is a lot of value in enhancing your reputation among your peers.

Social proof and influence

When celebrities endorse a nonprofit, it acts as a form of social proof—followers are more likely to donate because they trust a friend, family member, influencer, or celebrity’s judgment and feel inspired by their actions.

A great real-life example of the difference a celebrity can make is the case of Magic Johnson, the legendary basketball player. In his day, it was assumed AIDS was something that only ‘happened’ to those following a homosexual lifestyle. He broke that myth by speaking about his case openly, leading to a dramatic increase in awareness and donations to combat AIDS-related deaths.

I think sometimes we think, “Well, only gay people can get it; it’s not going to happen to me”, and here I am saying that it can happen to anybody. — Magic Johnson (November 7, 1991)

Of course, a nonprofit cannot be expected to wait until a celebrity comes along. However, all nonprofits should not underestimate the power of social influence. Use micro-influencers from TikTok and Instagram to make your point.

Warning: Make sure the celebrity is dedicated to the cause. A mid-campaign “skeletons in the closet” by the celebrity or influencer will cause immense damage.

Use the language of love

Gary Chapman’s concept of the ‘Five Love Languages’ identifies five primary ways people express and receive love in relationships. Each person tends to have one or two dominant languages that resonate most deeply.

Nonprofits can use similar concepts for their appeals and to show donor appreciation. Here’s how:

Words of affirmation: Expressing thanks through spoken or written words of appreciation, encouragement, and praise.

Acts of service: Demonstrating your thanks through helpful actions, such as cooking your donors a meal, promoting them on social media, or holding a ceremony to thank them.

Receiving gifts: Showing gratitude through thoughtful and personalized gifts, whether big or small, that demonstrate the nonprofit does acknowledge their help.

Quality time: Having meaningful conversations or sharing activities about the work the nonprofit is doing and the impact the donation is having. These should be in-depth and transparent.

Physical activities: Communicating gratitude through physical activities, like inviting donors to the field, or for activities like planting trees or digging wells. Letting them be hands-on with the impact they wish to contribute to.

Psychology of giving hacks: What comes next?

Nonprofits that understand and apply this psychology of giving insights can foster stronger connections with donors, increase retention, and maximize funding for their causes. Integrating psychology into fundraising is not just about asking for donations—it’s about creating meaningful, impactful relationships with supporters.

You can understand more about how to ask for donations through these resources:

Feature Image by Markus Winkler from Pixabay