Presentation Transcript

1. Unraveling the Mystery of Why People Give!

   Melissa Morriss-Olson, Ph.D.
2. Many of us approach fundraising with a tin-cup mentality!
3. Stereotypes When you hear the word philanthropist, what images or words come to mind?
4. Stereotypes How would you complete this sentence? People I know who give are…..
5. Stereotypes How would you complete this sentence? As a giver, I am…..
6. FundraisingLessons from Miss N.
7. Who is a philanthropist? All people (and organizations) who exert themselves for the well-being of others; who engage in practical and heartfelt benevolence; who donate money and time to causes they believe in so that the world may become a better place.”
8. Some General Observations There is no “one size fits all” definition of a philanthropist Philanthropic impulse is innate and plays out differently over time and within specific cultural context—every engagement with a donor is unique. Fundraising process is more art than science. It’s all about people!
9. Why Do We Care? The survival and health of most nonprofits and service organizations depends upon finding enough givers (individual and other) who can be motivated and influenced to give, who are capable of giving the requisite funds, and who can be interested in the purposes and needs to be served.
10. Good News Total giving across the country was up last year by 4.0 percent to $298.42 billion, according to Giving USA 2012. Individuals and families account for 88 percent of all charitable giving, when you combine their gifts and bequests. Corporations account for 5 percent.
11. Where do the dollars go? 32% to religious causes 13% to education
12. Getting your share of the pool starts with understanding why people do and don’t give to particular causes.
13. Mixer’s Framework Stimulus to give influenced by both internal needs and desires as well as external influences. Key questions for fundraisers: “What can I do to satisfy or enhance these factors within donor prospects? How can these motivations and influences be used to activate volunteers and staff? --Principles of Professional Fundraising, Joseph Mixer (1993)
14. Mixer’s Framework Internal Motivations Personal or “I” Factors: Acceptance of self or self-esteem Achievement Cognitive interest Growth Guilt reduction Meaning or purpose in life Personal gain or benefit Spirituality Immorality Survival
15. Mixer’s Framework Internal Motivations Social or “We” Factors: Status Affiliation Group Endeavor Interdependence Altruism Family and Progeny Power
16. Mixer’s Framework Internal Motivations Negative or “They” Factors: Frustration Unknown Situations Insecurity Fear and Anxiety Complexity
17. Mixer’s Framework External Influences Rewards: Recognition Personal Social
18. Mixer’s Framework External Influences Stimulations: Human Needs Personal Request Vision Private Initiative Efficiency and Effectiveness Tax Deductions
19. Mixer’s Framework External Influences Situations: Personal Involvement Planning and Decision Making Peer Pressure Networks Family Involvement Culture Tradition Role Identity Disposable Income
20. Mixer’s Framework Determining Why People Do Not Give Personal Characteristics and Situation Problems Communication Problems Reactions to Solicitations Organizational Image and Shadow Problems
21. Mixer’s Framework Why People Don’t Give Personal Characteristics and Situation Problems: Personal preferences Higher Priorities* Not Concerned Not Interested* Not Involved Stinginess *most common
22. Mixer’s Framework Why People Don’t Give Personal Characteristics and Situation Problems: Contrary Beliefs Disagree with Mission Don’t Agree on Policies* Don’t Believe in Cause* Don’t Like Programs Different Work Ethic *most common
23. Mixer’s Framework Why People Don’t Give Personal Characteristics and Situation Problems: Finances Can’t Afford to give* Fear of Reciprocity Economic Conditions Tax Rates *most common
24. Mixer’s Framework Why People Don’t Give Personal Characteristics and Situation Problems: Situations Complexity of Life Competition Changing Environment Outside Local Area
25. Mixer’s Framework Why People Don’t Give Communication Problems: Lack of Information Mission Not Known Organization Not Known Others Not Supporting Need Not Shown* No Record of Service No Real Case No Results Seen* *most common
26. Mixer’s Framework Why People Don’t Give Communication Problems: Ineffective Communication Negative Publicity Publications Too Slick Unclear Need Promotion Too Costly
27. Mixer’s Framework Why People Don’t Give Reactions to Solicitations: Manner of Asking Asked Too Often* Asked Wrong Way* Asked for Too Little Manipulation Too Many Mailings or Contacts* *most common
28. Mixer’s Framework Why People Don’t Give Reactions to Solicitations: Solicitor Don’t Like or Connect with Asker* No Obligation to Asker Used Paid Solicitors Wrong Person Asking* *most common
29. Mixer’s Framework Why People Don’t Give Reactions to Solicitations: Relationship with Prospect No Personal Contact No Recognition Not Appreciated Not Asked* No Tradition to Give *most common
30. Mixer’s Framework Why People Don’t Give Reactions to Solicitations: Timing Already Gave Asked Too Late or Too Early Wrong Time *most common
31. Mixer’s Framework Why People Don’t Give Organizational Image or Shadow Problems: Perceptions of Poor Organizational Behavior Active Mistrust High Administrative Costs Agency Too Rich Bad Experience Poor Reputation Services Cost Too Much Duplication of Services Government Involvement Taxes Pay for Services
32. Mixer’s Framework Why People Don’t Give Organizational Image or Shadow Problems: Management Misuse of Gifts Poor Policies and Rules High Fundraising Costs Poor or Ineffective Management
33. Social Exchange Model for Giving “Philanthropy is a social relation of giving and getting between donors and recipients in which donors have needs to be fulfilled as well as resources to grant, and recipients have resources to give as well as needs to be met.” -"Giving and Getting: Philanthropy as Social Relation,” S. Ostrander and P.G. Schervish, in Critical Issues in American Philanthropy, ed. Jon Van Til, Jossey Bass, 1990
34. Social Exchange Model for Giving Need Resources: dollars and time Agency Prospect Satisfactions Psychological and social: Self-esteem, achievement Purpose, status Group endeavor, power Source: Pacific Bell
35. Reflection Why do people give to your organization? What are your donors getting back in exchange for their involvement with you, for their commitment of time, talent and treasure?
36. Important Caveats! Multi-generational family philanthropists give differently than first-generation philanthropists. Religious motivations for giving can be hugely important for some donors. Culture, age, and gender can play a significant role in determining if, how, and why someone might give to a particular cause. More often than not, donor involvement trumps nearly all other explanatory factors.
37. Women as Donors Opinions diverge on how and to whom women give: Women want emotional ties to the charities they support Many women cite a charity's mission and efficiency as key factors in their giving decisions Women demand to be involved in the institutions they support There is nearly universal agreement on one point: women play an increasingly significant role in philanthropy
38. Considering the Context Philanthropic landscape in transition Recent economic downturn has jarred confidence of many nonprofits and service organizations Donor confidence at all-time low And yet, people continue to give!
39. What do we know? Recent Large Gifts by Source of Wealth: Media (6) Investments (5) Finance (5) Retail (5) Energy/oil (5) Software/technology (4) Financial services (3) Healthcare/;medical devices (3) Industrial/manufacturing (3) Real estate (3) Inheritance (3) Hedge fund (2) Horse racing (1) Hotels/casinos (1) Parking lots (1) Legal (1) Source: Chronicle of Philanthropy (gifts reported since October, 2008)
40. What do we know? Top 10 Recession Proof Businesses: Non-cyclical businesses (funeral homes, public utilities, energy) Health care Information technology Discount retail Vices Education The government Repossessions and bankruptcy law Luxury retail Candy, Cosmetics and Contraceptives
41. What do we know?Giving During Recessions Corporate giving is most immediately affected in economic downturn: corporate foundations are funded with annual profits. Foundation giving. Tougher to get new foundation grants during economic downturn. Family foundations have greater resiliency and flexibility. Individual giving has greatest resiliency and donors do respond in difficult times.
42. What do we know?Giving During Recessions In a difficult financial climate, donors do respond to new approaches: A Jupiter Research survey showed 2/3rds of online donors plan to increase giving online Online fundraising continues to grow, attracting newer, younger donors and increasing gifts through other channels
43. What do we know?Giving During Recessions In a difficult financial climate, donors do respond to persuasive causes: Program support to meet a need that is highly compelling Building projects that are dependent on financing Shovel-ready projects that are good for economic recovery Availability of challenge and matching gifts
44. What Do We Know? Tremendous Wealth and Competition for Resources Competition for Funding Available Resources
45. What Do We Know? Technology has revolutionized the philanthropic process and context 24/7 expectations Access to new donors in far away places
46. What Do We Know? Corporate and Foundation Philanthropy Multi-year grants are out Single-year grants are in—with tighter restrictions, evaluation requirements Less allowance for renewal or non-project operation support More emphasis on pilot projects with emphasis on replicability and scalability Global shift in giving emphases
47. What Do We Know? New Giving Vehicles: Giving Circles Professional Philanthropic Advisors Donor Advised Funds
48. What Do We Know? Today’s Donor Sophisticated and Savvy Less likely to give us the benefit of the doubt Motivations are more complex and needs are greater Giving While Living Social entrepreneurs and investors
49. Enduring Philanthropic Truths More Important Than Ever! Fundraising is not about the money; it is about relationships People give because we MEET needs; not because we HAVE needs A gift to your organization is really a gift through your organization into the community All donors are really donor-investors Your cause and your case for giving is the same—in good times and in bad
50. Be diligent in observing the 3C Rule! Communicate Stay Connected Get Close
51. Communicate, Communicate, … Tell stories Communicate promise and impact—not panic Let donors know you're using their dollars wisely Publicize new gifts and good news Answer the 4Ws: Why me? Why now? What for? Who says?
52. Communicate, Communicate, …
53. Stay Connected and Close
54. Focus on Mission and Impact Make the case for giving Remind them of the consequences of not meeting your mission Who will suffer, go without, be worse off than they are today? Top Reasons People Give: Because they were asked To give back to community Compassion for those in need Personally believe in cause Affected by cause
55. Focus on Mission and Impact Show the impact of your work on the life of an individual Show the impact of your work on the community Find a way to connect donors with mission in up close and personal way People who really care about your work and mission will try to find a way to help
56. Be active and strategic and know where you are going! Significantly increase activity: Visits and briefings with donors and friends Communication Don't stop asking!
57. Do you have a fundraising action plan?
58. Don’t be afraid to challenge the way business is done! Burroughs Community Center in Bridgeport—dumped its annual auction in favor of midwinter polar bear plunge—exceeded all previous fundraising event income!
59. Diversify and Expand Your Outreach Conduct a constituency circles audit: Who has a reason to care and to be involved with you?
60. Diversify and Expand Your Outreach Conduct a constituency circles audit: Your Universe of Potential Donors Your Best Potential—Where You Should Spend Your Time
61. Diversify and Expand Your Outreach Who are your collaborators? Area College Education Programs Parents Grandparents Local Business Owners Teachers PTOs Communities of Worship Local Family Foundations Social Service Agencies
62. Diversify and Expand Your Outreach Who are your collaborators?
63. Diversify and Expand Your Outreach Are you making the most of your website presence? Get Online Now! Does your website pass these 2 key tests? Task Testing Passion Builder Testing
64. Diversify and Expand Your Outreach Add an RSS Feed or social bookmarking widget to your website: Subscribe to our RSS Feed http://beth.typepad.com/
65. Diversify and Expand Your Outreach Pick one or two social networks where your constituencies hang out:
66. Diversify and Expand Your Outreach YouTube Nonprofit Program http://www.youtube.com/watch?v=YpKAtk5C0lM
67. Embrace notion of donors as investors Invite your donors into the kitchen Inform, communicate and demonstrate Steward the gift AND the donor
68. Take Away What is one thing that your organization can do this week to increase its fundraising effectiveness?
69. Closing Thought Many persons have a wrong idea of what constitutes true happiness. It is not attained through self-gratification but through fidelity to a worthy purpose. -- Helen Keller