2. Social Psychology of Giving
Dr Adrian Sargeant
Hartsook Centre for Sustainable Philanthropy

3. @RogareFTT @adriansargeant adrian.sargeant@plymouth.ac.uk

4. How do we build relationships?
‘Everything we know about how to build a good relationship as a parent or friend we can apply to fundraising.’

5. Stages of a relationship
COMMITMENT
Stage 4
EXPANSION
Stage 3
Dissolution
EXPLORATION
Stage 2
AWARENESS
Stage 1

6. Relational v transactional
“Not all relationships are important all the time…some marketing is best handled as transaction marketing.”
Swedish marketing professor Evert Gummesson

7. Relational v transactional
Single Sales
FOCUS
Customer Retention
Immediate ROI
KEY MEASURES
Lifetime Value
Short-term
TIMESCALE
Long-term
Purchase
ORIENTATION
Relationship
Emphasis
CUSTOMER SERVICE
Major Emphasis

8. Relational or transactional?
Transactional Fundraising
Relational
Fundraising

9. ‘Fundraising pendulum’
Beneficary Needs
Donor Needs

10. Stage 1: Awareness
What will inspire a donor at this stage

11. Stage 1: Awareness

12. Stage 1: Awareness

13. Stage 1: Awareness

14. Stage 1: Awareness
What will inspire a donor at this stage

15. Stage 1: Awareness
Invest in immersive experiences

16. Stage 1: Awareness Offer donor choices
Satisfy them by giving them control
Don’t ask on a first date
First prove value of communications

17. Stage 1: Awareness
Conduct donor surveys

18. Stage 1: Awareness
Conduct donor surveys

19. Stage 2: Exploration – Deepening the Relationship
Satisfaction is driven first by the attracted target but then by the fulfillment of donors’ needs.
Shift from “how attractive you are” to “what needs this relationship can mean for them”.

20. Stage 2: Deepening the relationship
Satisfaction is first driven by fulfillment of donors’ lower level needs but then transition to be fulfilled by donors’ higher level needs;
connectedness
growth
self-actualization
self-fulfillment

21. But
The higher the level of perceived needs to be met, the more ambiguous and more uncertain people feel about judging their fulfilment
The more uncertain, the more likely they are to rely on others to help them form the judgement
The more ambiguous people feel about what a fulfilled life means the more they would look to others to help them define what a fulfilled life means

22. Stage 2: Deepening the relationship

23. Stage 2: Deepening the relationship

24. Stage 2: Deepening the relationship

25. Stage 2: Deepening the relationship

27. CORPORATE communications
How great the ORGANIZATION is = $4,470 in gifts
DONOR communications
© Tom Ahern 2013

28. How great the ORGANIZATION is = $4,470 in gifts
How great the DONOR is = $49,600 in gifts
© Tom Ahern 2013

29. Stage 3 – Expansion Self-verification theory
“People can always feel better if others important to them see them in the same way they see themselves.”
“Both partners reveal themselves, and seek and express validation of each other’s attributes.”
(Reis and Shaver 1988, 369).

30. Self-verification theory
For the clever fundraiser, the point of the research is not the information, but the participation

31. Let donors see similarity
Donors must believe in what you believe in, but …
Immerse them in other activities that express those beliefs – perhaps even invent them so that donors can see the similarity in beliefs.

32. Similarity of Identity
Lets explore …

33. Public Radio Industry Over 800 NPR member stations in the US Funding:
1/3 from individuals
On-air drives, direct mail, telemarketing
1/3 from corporate underwriting
1/3 from state and local governments, universities and foundations
Individual donations
$250 million per year
Average gifts range from $20 - $250 depending on the length of listening

34. Social Information
Seattle’s Lakeside Upper School counts … Bill Gates among its alumni. Rumor has it a fundraiser for the high school put the bite on Gates, who asked: “How much is everyone else giving?” About $75 he was told. “So put me down for $75,” said Gates.
-- Forbes, Jan 22, 1996, p. 16

35. On-Air Drives Listeners call to make pledges
Share social information during the phone conversation
Control: say nothing
Social Comparison: $75, $180, $300

36. Implementation Phone Conversation Test Groups Dependent Measure
“Hello! Station-Name member line.”
“Are you a new member or renewing member of Station_Name?”
Test Groups
Say nothing (control group)
“We had another member who contributed $XXXX.”
$75 $180 $300
Dependent Measure
“How much would you like to contribute?”
Ethical Concerns
No deception
Anonymity protected all donors

37. Social Information Increased Giving for New Members (Number of Callers = 317)

38. Social Information Increased Giving for Renewing Members (Number of Callers = 113)

39. Long-Term Financial Impact (One Year Later)
31%-45% Higher Revenue

40. Financial Impact (with very low cost)
250 Million Donor Income
10% Increase
25 million.
Investment?
CPB paid about $250,000
Return on Investment?
How can we make the results more generalizable, more precise, and more effective?

41. Other Fundraising Media: Direct Mail
Social Information Increase Contributions in test stations
We had another member Mary, who has contributed $300 last year, We invite you to join this member and make your pledge today!
Telemarketing

42. Boundaries?

43. How to strengthen the effect?
Mass Fundraising (Not Major Gifts)
Segment donors into groups.

44. Similarity Matters (Mary &vs.Tom, She vs. He)

45. Gender Identity Esteem Matters

46. Self-Other Focus Matters

47. Self-enhancement theory
Katz and Beach (2000) tell us that people are most likely to seek partners who give them both verification and enhancement, and that in the absence of the latter, they seek the former.
So how can fundraisers can stretch their donors’ imagination about just how good a human being they can be?

48. Self-enhancement theory

49. Identity fusion
The giving of money is not experienced by the donor as a ‘loss’ or an ‘investment’’ any more.
The action of giving money, as the theory predicts, should make the individual feel stronger because of the closer connectivity they experience with others

50. Identity fusion Should not thank for the donor’s generosity per se…
…but rather, celebrate shared success

53. Stage 4: Commitment Focus on satisfaction Past investment
Availability of alternatives

54. But
Past tangible investment (shared debts, pets, jointly purchased items
Past intangible investment (disclosures, effort and time)
Planned tangible investment
Planned intangible investment

55. Download the reports

56. @RogareFTT @IanMacQuillin ian. macquillin@plymouth. ac
@RogareFTT