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How Nonprofits can Increase Fundraising Revenue through Behavioural Economics

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Bloomerang webinar presented February 2016

Published in: Government & Nonprofit
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How Nonprofits can Increase Fundraising Revenue through Behavioural Economics

  1. 1. @LeahEustaceBloomerang: Behavioural Economics February 2016 HOW NONPROFITS CAN INCREASE FUNDRAISING REVENUE THROUGH BEHAVIOURAL ECONOMICS
  2. 2. @LeahEustaceBloomerang: Behavioural Economics February 2016 Say what?
  3. 3. @LeahEustaceBloomerang: Behavioural Economics February 2016 Behavioural economics be·hav·ior·al ec·o·nom·ics noun a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making. (wikipedia)
  4. 4. @LeahEustaceBloomerang: Behavioural Economics February 2016 In other words … What impact does your subconscious have on the decisions you make? And, how can we use that knowledge to increase our fundraising revenue?
  5. 5. @LeahEustaceBloomerang: Behavioural Economics February 2016 How we think we make decisions @LeahEustace #NPStoryConf
  6. 6. @LeahEustaceBloomerang: Behavioural Economics February 2016 How we actually make decisions @LeahEustace #NPStoryConf
  7. 7. @LeahEustaceBloomerang: Behavioural Economics February 2016 Emotion versus logic Artwork courtesy of Mark Phillips www.bluefroglondon.com
  8. 8. @LeahEustaceBloomerang: Behavioural Economics February 2016 Emotion versus logic
  9. 9. @LeahEustaceBloomerang: Behavioural Economics February 2016 Emotional Contagion
  10. 10. @LeahEustaceBloomerang: Behavioural Economics February 2016 Relevance to Fundraising?
  11. 11. @LeahEustaceBloomerang: Behavioural Economics February 2016 Scarcity theory Simply put, humans place a higher value on an object that is scarce, and a lower value on those that are abundant. Photo by Matt Wetzler / CC BY-SA 2.0
  12. 12. @LeahEustaceBloomerang: Behavioural Economics February 2016 I’d better act fast!
  13. 13. @LeahEustaceBloomerang: Behavioural Economics February 2016 Limited sponsorships, naming opportunities, timelines
  14. 14. @LeahEustaceBloomerang: Behavioural Economics February 2016 Mere exposure theory
  15. 15. @LeahEustaceBloomerang: Behavioural Economics February 2016 Reciprocity theory Give Receive
  16. 16. @LeahEustaceBloomerang: Behavioural Economics February 2016
  17. 17. @LeahEustaceBloomerang: Behavioural Economics February 2016
  18. 18. @LeahEustaceBloomerang: Behavioural Economics February 2016 Social Proof Social proof is a psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation. (wikipedia)
  19. 19. @LeahEustaceBloomerang: Behavioural Economics February 2016 Social proof
  20. 20. @LeahEustaceBloomerang: Behavioural Economics February 2016 “Every day, people just like you … “
  21. 21. @LeahEustaceBloomerang: Behavioural Economics February 2016 Authority We feel a sense of duty or obligation to people in positions of authority.
  22. 22. @LeahEustaceBloomerang: Behavioural Economics February 2016 Authority The Milgram experiments
  23. 23. @LeahEustaceBloomerang: Behavioural Economics February 2016
  24. 24. @LeahEustaceBloomerang: Behavioural Economics February 2016 Anchoring theory The anchoring rule of thumb describes the common human tendency to rely too heavily on the first piece of information offered (the “anchor”) when making decisions. Once the anchor is set, decisions are then made by adjusting around the initial anchor, regardless of the legitimacy of the actual anchor. (source: http://disenthrall.co/)
  25. 25. @LeahEustaceBloomerang: Behavioural Economics February 2016
  26. 26. @LeahEustaceBloomerang: Behavioural Economics February 2016 Has this happened to you? Photo by Ann Larie Valentine / CC BY-SA 2.0
  27. 27. @LeahEustaceBloomerang: Behavioural Economics February 2016 Campbell's soup sale
  28. 28. @LeahEustaceBloomerang: Behavioural Economics February 2016 How much jail time? Photo by Ken Teegardin/ CC BY-SA 2.0
  29. 29. @LeahEustaceBloomerang: Behavioural Economics February 2016 Save 50,000 sea birds “Would you be willing to pay $5….”? $20 “Would you be willing to pay?” $64 “Would you be willing to pay $400…?” $143
  30. 30. @LeahEustaceBloomerang: Behavioural Economics February 2016 Be thoughtful about what your first ask is
  31. 31. @LeahEustaceBloomerang: Behavioural Economics February 2016 People look to an anchor to help them make a decision, but they make multiple decisions before making a gift, so there's an opportunity for multiple anchors: “Should I open the package?" "Should I read the letter?" "Should I agree to the meeting?"
  32. 32. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor … in Toronto
  33. 33. What’s the anchor?
  34. 34. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor?
  35. 35. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor? “I don’t want to ask for $1,000,000 and get thrown out of your office, but I don’t want to ask for $100,000 either if $500,000 is more your speed.”
  36. 36. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor?
  37. 37. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor?
  38. 38. @LeahEustaceBloomerang: Behavioural Economics February 2016 What’s the anchor?
  39. 39. @LeahEustaceBloomerang: Behavioural Economics February 2016 • Impact • Break the cycle • You make the difference • The time to act is now • Our programs work • There’s no better place to ask for help than YSB • Saving lives … and look at the eyes
  40. 40. @LeahEustaceBloomerang: Behavioural Economics February 2016 Extremism aversion
  41. 41. @LeahEustaceBloomerang: Behavioural Economics February 2016
  42. 42. @LeahEustaceBloomerang: Behavioural Economics February 2016 Leah Eustace, ACFRE Chief Idea Goddess, Good Works leah@goodworksco.ca www.goodworksco.ca @LeahEustace #NPStoryConf

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