It is always a challenging task to keep the stations solvent by tapping large and small donors. Charity organizations' Periodic fundraisers tend to employ modest rewards for their donors and for an All Things Considered tote bag, etc. The benefits of such gifts are well thought and nice but certainly not a reason to contribute to any cause. Perhaps such gifts are sometimes enough for some organizations to get a contributor and bump into the next donation level. Surprisingly, some researchers argue that this type of ‘thank-you gift’ can reduce donators and contributions. Here are some related facts discussed:
That wrong way to say “thanks.”
Some researches explain that “thank-you gifts on charitable giving” is an experiment that contrary to expectations rather than rewarding contributions cuts donations in most circumstances. The most likely reason for the negative impact on contributions is “crowding out.” The abstract is, the prospect of receiving a gift activates a feeling of selfishness which, reduced altruism and hence cut the average donation. The biggest takeaway is that organizations promising donors a thank-you gift can be hazardous to a non-profit's income! But there are specific ways to use gifts to get positive results!
The right approach to reward a donor:
Reframe your context: There are several ways to reward a donor highly likely to not the hurt donations or sentiments and work on increasing involvement and donations. You carefully need to reframe the context and described the thank-you gifts not as rewards but as a means of further your charity's goals. Making a gift acceptable to help the charity and the cause and emotional description may eliminate the negative effect on donations. You need to have a gifting strategy that works like a contribution booster for your cause.
Send a Social Signal: Any gift that sends a social signal about the donor can positively affect. You are free to experiment while using examples like an invitation to an exclusive dinner or lecture, or membership in an elite club. Such altruistic behaviour is a way to signal “fitness” to others. Hence public recognition of donations is often desirable, especially when dealing with a larger organization.
Surprise the Donor: An untimely but appropriate ‘thank-you gift’ can leave a positive impression with the donor without crowding out effect at the time of the next solicitation.
Advance Gifts: Many non-profits are sophisticated direct marketers who have tested and re-tested their offers, and know that small gifts yield far more impact on donations. If you opt for any reciprocity strategy by giving the donor something in advance of a contribution, be sure to test different options for charitable donation gifts.
