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Science of Giving - CyberGrants Conference

Giving is powerful. But it's also complex. This presentation looks at some of the stats of the philanthropic sector as well as some science behind giving, fundraising, and marketing for causes.

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Science of Giving - CyberGrants Conference

  1. 1. The Science of Giving Brady Josephson – Shift Charity
  2. 2. No 6 on Forbes’ Fictional 15 worth $6 billion Typical Forbes 400 has donated 1.1% of net worth to charity. Scrooge is 55 here and dies at 75 so average of $4.4 M per year But he says it includes back pay, should’ve been giving since 40 Average per year should’ve been $2.5 M per year 1st gift is $42M in 1843 = $1,100,000,000
  3. 3. Fair market value of scarf is not more than 2% of donation or $50 Reciprocity - where people are more likely to give after having received 20% of all giving occurs in December December 31st is the last day you can give and get a tax benefit December plays on the goal-proximity effect (and guilt) Asked in public around other people applying social pressure = $1,100,000,000
  4. 4. Giving is powerful. Giving is complex.
  5. 5. Bureau of Economic Analysis
  6. 6. Giving USA
  7. 7. Charity Navigator
  8. 8. Giving USA, BEA, Various
  9. 9. Charity Navigator
  10. 10. Millennials will inherit $30 Trillion in the next few decades.
  11. 11. Millennial Giving Characteristics ● Want to be more involved and included ● Want to use social influence and time ● Want to trust in the causes they support ● Want to give (time and money) with peers ● Want to see clear examples of how they are making a difference by giving (time and money) ● Want to get something back for their giving (impact, access, prestige, etc.) ● Want to support more organizations, and friends, in smaller amounts
  12. 12. Millennial Giving Characteristics ● Want to be more involved and included ● Want to use social influence and time ● Want to trust in the causes they support ● Want to give (time and money) with peers ● Want to see clear examples of how they are making a difference by giving (time and money) ● Want to get something back for their giving (impact, access, prestige, etc.) ● Want to support more organizations, and friends, in smaller amounts
  13. 13. Millennial Giving Characteristics ● Want to be more involved and included ● Want to use social influence and time ● Want to trust in the causes they support ● Want to give (time and money) with peers ● Want to see clear examples of how they are making a difference by giving (time and money) ● Want to get something back for their giving (impact, access, prestige, etc.) ● Want to support more organizations, and friends, in smaller amounts
  14. 14. Millennials & Philanthropy At Work Millennial Impact Report, 2015
  15. 15. Millennials & Philanthropy At Work Millennial Impact Report, 2015
  16. 16. Science Magazine
  17. 17. Happify
  18. 18. Happify
  19. 19. Joseph Mixer Why People Give Internal Personal or “I” Factors ● Acceptance, guilt reduction, meaning/purpose, spirituality, survival Social or “We” Factors ● Status, altruism, power, family, interdependence Negative or “They” Factors ● Frustration, fear/anxiety, complexity External Rewards ● Recognition, personal, social Stimulations ● Human needs, personal request, vision, efficiency/effectiveness, tax deductions Situations ● Involvement, peer pressure, culture, tradition, role identity, disposable income
  20. 20. Joseph Mixer Why People Give Internal Personal or “I” Factors ● Acceptance, guilt reduction, meaning/purpose, spirituality, survival Social or “We” Factors ● Status, altruism, power, family, interdependence Negative or “They” Factors ● Frustration, fear/anxiety, complexity External Rewards ● Recognition, personal, social Stimulations ● Human needs, personal request, vision, efficiency/effectiveness, tax deductions Situations ● Involvement, peer pressure, culture, tradition, role identity, disposable income
  21. 21. Science of Giving: Experimental Approaches to the Study of Charity
  22. 22. Science of Giving: Experimental Approaches to the Study of Charity
  23. 23. Science of Giving: Experimental Approaches to the Study of Charity
  24. 24. Why People Don’t Give 1. Identifiable victim 2. Sense of fairness 3. Parochialism 4. Money 5. Diffusion of responsibility 6. Futility
  25. 25. Why People Don’t Give 1. Identifiable victim 2. Sense of fairness 3. Parochialism 4. Money 5. Diffusion of responsibility 6. Futility
  26. 26. Giving USA
  27. 27. Option A Let me tell you about a young boy who dreams of becoming a doctor. A dream that was taken away from him when a classmate punched him in the face causing a traumatic cataract. He lost sight in one eye. A $150 donation today can restore his sight and with it his dream.
  28. 28. Option B This is Hery Moreno from Madagascar. He’s 10 years old and dreams of becoming a doctor. A dream that was taken away from him when a classmate punched him in the face causing a traumatic cataract. He lost sight in one eye. A $150 donation today can restore Hery’s sight and with it his dream.
  29. 29. Science of Giving: Experimental Approaches to the Study of Charity
  30. 30. Why People Don’t Give 1. Identifiable victim 2. Sense of fairness 3. Parochialism 4. Money 5. Diffusion of responsibility 6. Futility
  31. 31. Option A Your $70 donation today will support water and health related projects around the world to help those who need it most.
  32. 32. Option B Your $70 donation today will provide clean water for 2 people for life living in the remote village of Sasiga in Ethiopia.
  33. 33. Science of Giving: Experimental Approaches to the Study of Charity
  34. 34. Science of Giving: Experimental Approaches to the Study of Charity
  35. 35. Why People Don’t Give 1. Identifiable victim 2. Sense of fairness 3. Parochialism 4. Money 5. Diffusion of responsibility 6. Futility
  36. 36. Science of Giving: Experimental Approaches to the Study of Charity
  37. 37. Option A - Regular Our goal in this campaign is to raise money for the projects. Implementing each project costs $20,000. Your tax-deductible gift makes a difference.
  38. 38. Option B - Seed Our goal in this campaign is to raise money for the projects. Implementing each project costs $20,000. Your tax-deductible gift makes a difference. A private donor who believes in the importance of the project has given this campaign seed money in the amount of $10,000.
  39. 39. Option C - Match Our goal in this campaign is to raise money for the projects. Implementing each project costs $20,000. Your tax-deductible gift makes a difference. A private donor who believes in the importance of the project has given this campaign a matching grant in the amount of $10,000. The matching grant will match every dollar given by donors like you with a dollar, up to a total of $20,000
  40. 40. Option D - No Overhead Our goal in this campaign is to raise money for the projects. Implementing each project costs $20,000. Your tax-deductible gift makes a difference. A private donor who believes in the importance of the project has given this campaign a grant in the amount of $10,000 to cover all the overhead costs associated with raising the needed donations…
  41. 41. Science Magazine
  42. 42. Science Magazine
  43. 43. Rob Marquardt /FLICKR
  44. 44. Science of Giving: Experimental Approaches to the Study of Charity
  45. 45. Science of Giving: Experimental Approaches to the Study of Charity
  46. 46. Science of Giving: Experimental Approaches to the Study of Charity
  47. 47. Science of Giving: Experimental Approaches to the Study of Charity
  48. 48. Network for Good
  49. 49. Be A Better Fundraiser I. Frame the cause in tangible ways II. Use stories of (real) people III. Avoid big stats and numbers IV. Include specific information on people and programs V. Encourage monthly donations VI. Find matches for donations VII. Get seed funding for projects VIII. Get ‘overhead’ covered IX. Let donors know the good they are doing (and that it’s good for them) X. Make it easy (and fun) to give
  50. 50. Be A Better Fundraiser I. Frame the cause in tangible ways II. Use stories of (real) people III. Avoid big stats and numbers IV. Include specific information on people and programs V. Encourage monthly donations VI. Find matches for donations VII. Get seed funding for projects VIII. Get ‘overhead’ covered IX. Let donors know the good they are doing (and that it’s good for them) X. Make it easy (and fun) to give
  51. 51. 10 Tips To Be Great At Giving Good I. Give more often II. Give in smaller amounts III. Give to tangible things IV. Give in public V. Give when your donation will be matched VI. Give when your donation is at the end of a campaign VII. Give when your donation is the first or at the start of a campaign VIII. Give when the ‘overhead’ is covered IX. Give to cover the overhead X. Give with no strings attached
  52. 52. 10 Tips To Be Great At Giving Good I. Give more often II. Give in smaller amounts III. Give to tangible things IV. Give in public V. Give when your donation will be matched VI. Give when your donation is at the end of a campaign VII. Give when your donation is the first or at the start of a campaign VIII. Give when the ‘overhead’ is covered IX. Give to cover the overhead X. Give with no strings attached
  53. 53. Thank you! #cguc2016

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