How fundraisers can use the psychology of giving
In the ever challenging world of fundraising, it’s never been more important to secure the type of regular and committed donations that charities need to excel.
Knowing the psychology behind donating to charity not only helps fundraisers understand how to better engage the public, but also encourages them to become a regular long term donor.
As we’ve seen from the research in ‘the reasons people give to charity’, there’s quite a few different rationale about why folks donate to charitable causes.
Drilling down, if fundraisers can establish a donor ‘type’ or category that people fall into, they can gain deeper understanding about best ways to approach and communicate.
Once a fundraiser understands a donor’s psychological driver or ‘type’, they can shape their pitch into a tailored experience for each interaction. Using associated emotions like compassion, humour, fear, anger, empathy and hope can become powerful tools of persuasion.
So let’s take a look at the psychology of giving money
Essentially, there are nine types of donor. Techniques that a fundraiser can use according to type lets them be more emotionally connected to their donor and become more astute in their pitch.
You might also enjoy seeing if you recognise any of these traits in people you know who donate to charity, or even yourself!
1. The moral donor (altruism)
Altruism is a huge part of the psychology of charity.
This is the instinctive feeling of obligation to help others, because giving is the ‘right thing to do’.
Even if the moral donor isn’t personally concerned for a cause, they’re still more likely to donate because they recognise themselves to be in a position of fortune and therefore have a duty to act.
Fundraising psychology using altruism
When asked
‘Why is donating to charity important?’
This type of donor already knows the answer!
Fundraisers role here is to simply explain the disadvantage of those in need (normally through no fault of their own), exactly why the help is needed and how their money will make change.
The moral donor already has a strong conscience, so there shouldn’t be too many barriers in soliciting a donation from this personality type - Often it’s just a case of asking.
Signs of religious belief, such as a crucifix or head covering might also indicate a person is of faith, in which case it would be safe to assume there’s a strong moral code. Of course if they are and do then it’s probable they’re already supporting other causes!
2. The egoism donor
The donor psychology here is that generally, giving makes us happy.
Humans are hard wired when it comes to pleasure and lots of people feel good when they give. This rush of inner warmth and contentment is known by psychologists as ‘Egoism’.
Of course this experiential glow is not the case for everyone. Some just don’t feel pleasure from giving and so won’t oblige for that reason.
As yet neuroscientists have no biological explanation on why some do get this feeling and some don’t.
But what’s really interesting, is that humans are able to train and activate their brains reward circuit themselves. If a person has a particular set of beliefs, by acting in accord with those beliefs, they can trigger a sense of pleasure from that.
Here’s a great example:
A baby isn’t born loving football, but if they grow up on a household where they’re taught that goal scoring is a cause for joy and celebration, it isn’t long before they receive genuine pleasure when their team scores a goal. Essentially they have trained their brain to respond to an artificial stimuli.
The same pleasurable response can be trained when giving to charity, provided it aligns to personal beliefs, such as growing up with parents who emphasise that kindness is a priority.
Psychology of fundraising for egosim
Professor of neuroscience and author David J Linden thinks that if charities and fundraisers focused on the pleasurable side of giving, we’d trigger the reward systems of the brain, in turn making people want to repeat the act.
Despite what British culture teaches about being more modest when giving to others, Linden and his peers say indulging in good feelings we get from giving isn’t a bad thing!
To work with the egoism donor in fundraising, the goal is to inflate the ego.
To spot an egoism donor, fundraisers should notice if they mention they already support charities and give them a compliment on their generosity. If it’s clear they feel really good about it, then you know you’re dealing with an egoism donor.
Place emphasis on how much good they’ll be doing and what terrific and kind people donors are. This way you’re speaking to the parts of them that help them to feel good about themselves.
Make it clear that feeling good about doing a kind thing is just fine and they should feel proud of themselves.
If they do decide to donate, thank them immediately and sincerely.
After a commitment to regularly donate, charities should keep donors updated about how their contributions are helping. Donors should know exactly who has benefited from their kind act what a positive outcome their decision has had.
Using donors names is another great fundraising tip because it personalises the donor experience as well as tends to the ego. Going further, if there’s an opportunity to publish their name somewhere, whether on emails or a certificate through the post, you are continuing to trigger the pleasure centre of the brain.
3. The social dynamic donor
Humans are herd animals, which means that being accepted and praised by others is a fundamental driver.
This primal desire to belong is a primary motivator that’s taught and learned from birth by our parents and communities;
‘If you’re good you get to join in the fun, if you’re not, you aren’t’.
Throughout our lives, we learn that generosity and helping is something regarded positively by others, leading us to feel approved of and validated.
The social dynamic donor finds ways to give to charity without donating money. These include things like community projects, volunteering, or running marathons. These types of charity events are the social dynamic donor’s happy place.
Social dynamics is all about how we interact and impress upon others, it’s our sense of belonging.
In a survey of 819 American donors by psychology today, donors admitted that that gave because their donations mattered to someone they cared about. For example, married couples often donated together… Other donors chose medical charities because someone they knew was suffering with a supported disease.
When we apply social dynamics to charitable acts, we know that sometimes, people participate as a way to present themselves in a positive light to others. Being seen as good person gains the acceptance we all crave.
Humans also tend to copy actions and behaviours of others that we see get positive attention, quite literally ‘following the herd’.
So if a cause is attracting a high number of donations (think Major Tom during Covid), others jump to donate, wanting to share in the community and the vibe. It’s the classic case of ‘monkey see, monkey do’.
To back up this theory, a study of online donation pages, showed that when a donor sees that a person before them has made a large donation, they’re more likely to make a larger donation themselves
Social dynamics also takes the lead when someone we know is involved with a cause or event - where by default anyone associated with them is educated on the topic too. Even connecting to charity in this less obvious way is enough for a social dynamic donor to become a supporter themselves.
Echoing this sentiment is the research that shows that social dynamic donors are more likely to support a cause if an ‘influencer’ or celebrity endorses it, literally because they’re someone familiar.
How to use social dynamics when fundraising
It’s a great idea to try to involve friends, family or colleagues when trying to solicit donations. Charity events are brilliant for this type of donor because they’re all about connecting with others.
Online, this can be done via group centered psychology of donation pages, with links to easily share with others. Easy to follow stories with clear objectives work well and will inspire people to follow and share.
Use social media to congratulate and be sure to thank donors publicly.
When face to face fundraising, approach people in pairs or small groups, creating a mini network (or herd!). Ask questions and draw similarities between them and yourself to incorporate a sense of comradery. Bounce ideas and emotions off each other and look for signs that one looks willing to support, in which case encourage the other to ‘gee’ them on. You never know, they may even subconsciously try to ‘out-do’ one other (see egoism further down!).
For corporate fundraising, you can turn team building events into fundraising events, where they get kudos and group energy from work and friends alike.
4. The FOMO donor
Similar to social dynamics, the FOMO or ‘Fear of Missing Out’ donor is motivated by the actions of peers.
It’s a strong pull to act if a person perceives that others are having more fun or living better lives than they are!
Psychologists say a person is far more likely to take action if there is a threat that they will not be able to have something others have. You only have to think back to the hoards of people queuing for toilet roll or petrol during the Covid pandemic to see how it works.
That’s why fear of missing out or ‘FOMO’ can be a strong contender for motivating potential donors too.
While FOMO is endlessly used in marketing strategies like ‘limited edition’ products or time restraint on deals (think Black Friday), it’s not just ‘stuff’ that people suffer FOMO with; it’s experience based too.
If you believe others are going to having better time by following the herd, there’s a strong desire to act so you don’t miss out!
Using FOMO charity psychology
Make sure your fundraising tactics emphasise FUN!
Directly involve donors in the experience, create space that includes and invites them to participate and contribute.
Share news about how people can get involved, who will be there and especially how great it will be! Use plenty of photos of happy people and teams. Competitions, fun games and questions all work to try to engage and include everyone.
Be as creative as you can – a litter picking event sounds pretty boring to the FOMO donor, but throw in a silent disco with bottles of beer at the end and suddenly it becomes a party that’s too good to miss.
5. The relatable donor
Donating to charity is a very personal thing and what inspires a lot giving is a kinship.
Most people find it difficult to empathise with something that they can’t even imagine happening to them.
Personal experience on the other hand, is a powerful influencer.
Neurologists put this down to our primal tribal instinct.
Although our ‘tribes’ often boil down to things like our race or religion, they can also be defined by our experiences.
If you’ve been affected by cancer for instance, you can almost certainly relate to what someone else with cancer is going through and see yourself in their story.
For that reason, the relatable donor type instantly empathises and is inclined to help - knowing how important it was to them during their experience.
How to use relatability when fundraising
Questions are your main tool for finding out information about a potential donor here.
By choosing your questions carefully, you can help open up a person’s story and establish any connections between your cause and their circumstances.
For example, if you’re fundraising for a rescue dog charity, ask if they’ve ever had a dog. If the answer is yes, you’ve established a commonality and can expect the potential donor to be able to empathise with the rescue dog’s angst.
6. The trust based donor
Donors must trust and believe in your mission and that your cause is worthy of their money.
Although some people are naturally more trusting than others, there many that remain cynical.
For the donor that prioritises trust, they must not only understand why a cause needs money, they must believe that it will be spent appropriately and accordingly. To become one of the trusted charities to donate to takes openness, integrity, trust and time.
This is especially important in fundraising, because once money is handing over, the donor ultimately has no say about what happens to it.
But it’s not just just the charity that needs to earn the trust, it’s the face to face fundraiser too.
Find out what charity donors REALLY think of fundraisers
Using trust when fundraising
The good news is, trust can be built.
It’s normal human condition to be a little skeptical, especially when it comes to handing your hard earned cash to a stranger for no benefit to yourself.
To overcome any doubt, the fundraiser must be absolutely transparent and honest.
Clearly explain who you are, why you’ve made contact and what you want without embellishment or exaggeration.
Sharing facts, figures and pictorial evidence, is proof that you are who you say you are and your intentions are honourable.
You may not be one of the most deserving charities in the eyes of the donor, but you should feel confident to put the case across and show the real need.
If questioned, you should always answer honestly (even if that answer is ‘I’m not sure, but can I get back to you on that’).
Showing an ID badge, wearing the uniform correctly and presenting professionally and with the correct marketing collateral are all ways to win the trust of the potential donor.
7. The impact donor
It’s easy for people to feel like they’re too small to make a difference and sometimes this can stop a person from bothering to donate or volunteer.
When we hear about the millions of people who don’t have access to clean drinking water, the terrible state of the planet, or the growing refugee crisis, it can definitely feel easier to switch off than make an attempt to change such a massive problem.
When surveyed, donors said that one reason they chose to donate was because they felt their gift had a direct impact to improve a situation.
A fable that springs to mind when talking about impact is this one:
Thousands of starfish were stranded on a beach after high tide and were likely to dry up and die. A boy stood at the waters edge throwing single starfish back into the ocean. A passer-by laughed and asked him ‘what’s the point of that? There are tens of thousands of starfish on this beach. You’ll never make a difference’. The boy picked up another starfish, threw it into the water and replied ‘it does to that one’.
The point here is that for donors to feel empowered and confident to give, we need to showcase the difference it makes to individuals and lives.
The ‘identifiable victim effect’ is about sharing stories of how direct change is made with help. Campaigns like ‘sponsor a school girl’ let’s donors to see the transformative impact of their money.
How to use impact to fundraise
Remember that helping to change a single thing can feel much worthier than throwing money into an abyss of problems.
Be very specific when talking about how donations help those benefiting from your cause.
Fundraisers should scale their pitch right down, focusing on individual stories and personalising your cause.
For example,
“By sponsoring this 7 year old girl Zanah, you’ll be the reason she gets an education, which will benefit her family and her community. You’ll give her access to better choices throughout her life. Show how the donor can follow Zanah’s journey, see photographs of her and even receive letters from her. Reiterate that you’re making a real difference to her life.”
Know your facts and figures so you can really provide assurance that money equals real change.
Instead of using general targets like
‘We need £500,000 to educate girls in Africa’
say
‘Just £10 will help Kim to buy the books and school uniform she needs to study for the whole year’.
8. The obtainable goal donor
Obtainable goals work well in all areas of life and donations are no different.
Like the ‘impact donor’, the goal setter likes to feel like their contribution genuinely matters and see that particular goals and objectives are reached.
This type of donor responds well to numbers.
They like reaching targets and the sense of achievement that brings.
Having obtainable goals and updating about the ‘finish line’ helps them visually see progress which makes them willing to help make it happen.
How to use goal setting in fundraising
To stimulate donations from people triggered by goals, make sure there are daily updates on your campaign.
As aforementioned, visual representations to show headway is great.
Specifically it’s good to get a campaign off the ground with a kick start donation to not only show a sense of social dynamics, you’re installing that sense of ‘can do’ and ‘nearly there’.
Use plenty of go-getter positive statements to show progress is already happening:
‘We’ve already raised 20% of our goal!’
Later motivation could come in statements like:
‘We are SO close to our target!’
At this point the goal setter donor should have the urge to step in and be the donor that tips the end result..
9. The martyrdom effect donor
The martyrdom effect is where some form of hardship is deliberately endured for a charity fundraiser.
Physical or mental challenges can be fun and seemingly more ‘deserving’ than just asking for money for nothing.
The martyrdom effect serves two psychological purposes:
The first is that the person going through the ‘suffering’ feels they genuinely deserve the donation as a ‘payment’ and has a personal motivation to push for more donations.
The second is that the donor feels that the fundraiser has ‘earned’ the contribution and so will pay up in admiration or sympathy.
How to use the martyrdom effect when fundraising
Anything challenging works well for the martyrdom response. Marathons, ice-cold swimming, growing a ridiculous moustache or eating unpleasant foods all create the necessary vibe.
A great fundraising tip is to always provide opportunity to volunteer and join in!
This way you’re not only tapping into the social dynamic, but research also shows that people who volunteer are more likely to donate that those who don’t.
By involving volunteers, you might find they’re willing to help promote the event and make donations themselves too.
We hope this has inspired you to try out some of these fundraising insights! Perhaps you’re interested in the world of fundraising and think it might be the role for you?
Maybe you are involved with a charity and have been looking for professional fundraisers to help you reach your financial goals?
