By including a donation value in your ads, you might be limiting how much your fundraising campaigns bring in, as we explain in this blog.
The psychology of numbers and how it affects donation amounts
It's tempting to believe that including a specific donation amount in your fundraising ads will entice more clicks and ultimately lead to larger donations. After all, if people see a reasonable figure, they might be more inclined to visit your donation page, right?
While this seems logical, it can actually backfire and limit your fundraising potential.
Let's explore why this happens and how you can optimise your approach.
The Anchor Effect: Setting the Stage for Smaller Donations
The "anchor effect" is a cognitive bias that sees people rely heavily on the first piece of information they receive ("the anchor") when making decisions. In the context of fundraising, when you present a specific donation amount in your ad, you inadvertently set an anchor. This anchor influences potential donors' perception of what constitutes an appropriate donation.
Imagine seeing an ad with the tagline "Donate £20 and help us fight hunger." That £20 becomes the anchor. Even if your donation page offers higher options (£50, £100, etc), donors may fixate on that initial £20, perceiving it as the suggested or even expected amount.
Studies have consistently demonstrated the power of anchoring in various scenarios:
Pricing
In a classic experiment, researchers in the USA asked participants to write down the last two digits of their social security number. Then, they were asked to bid on items like wine and chocolate. Those with higher social security numbers consistently bid higher, demonstrating how an arbitrary anchor (their social security number) influenced their willingness to pay.
Negotiations
In negotiations, the first offer often acts as an anchor, influencing the final outcome. The party who makes the first offer tends to secure a more favourable deal.
Subtle Cues and Donor Expectations
Beyond anchoring, suggesting a specific donation amount in your ad can subtly communicate that this figure is "enough" to make a difference. Donors may feel they've fulfilled their obligation by giving the indicated amount, even if they have the capacity to give more.
Priming and the Power of Suggestion
While anchoring sets a benchmark, priming subtly influences our perceptions and choices by activating specific associations in our minds. In the context of charitable giving, priming can significantly impact donor behaviour.
For instance, research by Kathleen Vohs and colleagues in 2006 found that subtly exposing individuals to money-related words or images led them to be less helpful and charitable.
Alternative Approaches for Maximising Donations
So, how can you avoid these pitfalls and encourage larger donations? Here are some recommendations:
Focus on Impact. Instead of highlighting a specific amount, emphasise the impact of a donation. For example: "Your donation provides clean water to a family in need" or "Every £ helps us save endangered species."
Open-Ended Asks. Use phrases like "Donate what you can" or "Every contribution counts" to encourage donors to give according to their means.
Tiered Giving with Benefits. On your donation page, offer tiered giving options with increasing benefits or recognition for larger donations. This can incentivise donors to consider higher amounts.
A/B Testing. Experiment with different ad copy and calls to action to see what resonates best with your audience. Track click-through rates and average donation amounts to optimise your campaigns.
5 Key Takeaways for Effective Charitable Fundraising
By understanding the psychological factors at play and implementing these alternative strategies, you can craft more effective fundraising campaigns that inspire greater generosity and maximise your impact.
Avoid Anchoring in Ads. Refrain from stating specific donation amounts in your advertising materials. Instead, focus on the impact of donations and use open-ended calls to action
Prime for Generosity. Utilise imagery, language, and storytelling that evoke empathy, compassion, and a sense of shared humanity. Highlight social norms and positive examples of giving
Beware Of Setting Expectations. Don't feature a donation value that people might take to imply is all you need or are seeking, as they are likely to just give this amount even if they are capable of donating more.
Emphasise Impact and Urgency. Clearly communicate the impact of each donation level and create a sense of urgency when appropriate, but always maintain ethical standards and transparency.
A/B Test and Optimise. Continuously experiment with different messaging, imagery, and calls to action. Track your results and refine your campaigns to maximise donations and engagement.
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