The Psychology of Fundraising and How You Can Use These Findings to Your Advantage

Photo by Alyssa Ledesma on Unsplash

All groups who fundraise have one common goal: raise as much money as possible to finance their operations. And yet, not all campaigns have the same rate of success. FundScrip data shows that groups whose supporters benefit personally from the funds perform better. For example, sports teams who raise funds for a tournament or schools who amass money for a humanitarian trip will have superior results, since the supporters themselves will otherwise absorb the expenses or fees directly, creating a circular effect. This group configuration means that supporters are more motivated to participate. Here are some great tips in the field of fundraising psychology to maximize your outcomes!

Configure Your Group Optimally

Try to configure your group so that supporters benefit indirectly from the funds raised, as in the examples above. If that’s not possible, highlight individual impacts, as people prefer to encourage identifiable subjects vs. large groups/statistics. You can also foster competitive spirit within supporters by sharing details about who has helped the most, to convince others to mimic that behaviour.

Ask for People’s Time First

People who have a direct connection with your group are more prone to donate (and more generously) than if they’re solely solicited for funds. As part of your strategy, give an option to volunteer. In doing so, sympathizers will be intimately tied to your operations and more likely to help in other ways.

Use Goal Proximity and Urgency to Reach the Finish Line

The closer you are to your fundraising goal, the more people are bound to donate. Psychologically, it’s motivating! Humans have a natural tendency to favour success and want to associate themselves with it. By giving regular campaign updates to your surroundings, you’re more likely to attain your objectives and get the remainder of the funds you need. Having ordering deadlines can also increase sales and engagement, and could be factored in. Additionally, focusing on monthly promotions and highlighting their imminent end may stimulate last-minute orders and be beneficial.

Share End Results and Start Again

Throughout the campaign and once it’s finished, be transparent with your supporters. Share footage of the results to close the loop and show the impact of people’s generosity on individual group members. Then, set a fresh fundraising objective and start over, with whatever your subsequent goal is. By creating short and precise bursts, your campaigns will always feel dynamic, and others will help time and again.

Use these tips to take fundraising to the next level starting today! If you’re new to FundScrip and have questions, our team will assist every step of the way.