Why No Pain Trumps Gain in Fundraising Offers

toddlers fighting over toy
We really can’t stand to lose things – it’s something bred into us early on.

I’m about to clairify a subtle but very important point about what motivates philanthropic giving. After all, that’s what the “Clairification” blog is all about.

It’s often said that people give to people.  So true.

But people are funny.

People will often give more to people who show them the pain that can be avoided through their gift rather than the people who show them the good that can be gained.

Seems counter-intuitive, right?

Absolutely. So here’s a little reminder that people don’t always behave as you might intuitively believe they would.  Which is why fundraising is part art and part science. And here’s something we know from the research:

Fear of loss weighs heavier than hope of gain

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How to Magically Multiply Your Donors

By now I hope you’ve read the latest Fundraising Effectiveness Survey results and know that, on average, U.S. and UK nonprofits are retaining only 41% of their donors. This is abysmal, and it makes me sad.

When I started out in fundraising, many moons ago, I consistently retained 60 – 70% of my donors. And I thought that was insufficient!

While there are all sorts of reasons this is happening, what matters most is stopping the attrition before your nonprofit withers and dies. Because at these rates, after seven years you’ll only have 10 out of 1,000 new donors you acquire today. You read that correctly! Did I mention that first-time donor retention rates are only 27%?

Time for some magical math.

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Warning: Your Nonprofit is Sending Too Few Emails

As the end of the year approaches, are you planning enough emails?

Emails should be included as part of your robust, multi-channel annual appeal if you want to increase your chances of reaching your goals.  On top of that, emails can be a great way to set yourself up for success even before you send an appeal.

Sadly, many nonprofits I encounter are unwilling to email their constituents sufficiently. Here’s what I often hear:

We don’t want to tick them off by mailing too many times.

We can’t ask them for money more than once or twice a year.

They get a lot of mail from us and it’s probably annoying.

They’re probably getting mail from a lot of different departments, so we don’t want to send from our department too often.

What all these comments have in common is that they’re based on a lack of data.

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