This document summarizes a presentation on how nonprofits can use behavioral economics to increase fundraising revenue. The presentation discusses concepts from behavioral economics like emotion vs logic in decision making, scarcity theory, mere exposure theory, reciprocity theory, social proof, authority, and anchoring theory. It provides examples of how these concepts could be applied to fundraising, such as using scarcity by limiting sponsorship opportunities, applying anchoring theory carefully with initial donation asks, and leveraging social proof by showing examples of other donors. The goal is for nonprofits to understand typical human behaviors and biases in order to most effectively structure fundraising appeals, asks, and campaigns.
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How Nonprofits Can Use Behavioural Economics to Increase Fundraising Revenue
1. How Nonprofits Can Use
Behavioural Economics
to Increase
Fundraising Revenue
2/4/16
1pm Eastern
The presentation will begin shortly.
2. 3
This presentation is being recorded!
The recording and slides will be emailed to you.
Please chat in any questions for our guest.
We will answer them in the formal Q&A session
at the end of the presentation.
Follow along on Twitter with #Bloomerang @BloomerangTech.
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(check your email for dial-‐in info from ReadyTalk)
Before we get started »
4. 3
Our guest presenter »
Leah Eustace, M.Phil, CFRE, ACFRE
Principal, Good Works
Chair of the AFP Foundation for
Philanthropy-Canada.
Co-Chair of AFP’s Inclusive Giving
Project.
In 2014, Leah became the 101st person
in the world to receive the ACFRE
accreditation. She was also honoured
with the AFP Ottawa Chapter
Outstanding Fundraising Executive
Award for 2014.
7. @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)
15. @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
22. @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)
28. @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/)
35. @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?"
39. @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.”
43. @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
49. Our next free webinar »
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Thursday, February 11th - 1:00pm Eastern
Alice L. Ferris, CFRE, ACFRE & James S. Anderson, CFRE
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