Nonprofits, do you know what is the most effective way to get donors to contribute to your organization? Assuring them that the entire donation will go towards the promised cause. We are not the ones saying this, rather #sciencesaysso!
A recent study found that people were more convinced to donate when told that their donations will not be used as overhead costs. Donors understand that the overheads are a necessary cost. Their only concern is their contributions are not going towards this. Assurance that some other source has covered the overheads gives them more confidence to donate to a charitable cause.
“I don’t feel good if my donation goes to cover a CEO’s salary,” says lead researcher Uri Gneezy of the University of California San Diego. More people, these days, understand and ask about overhead costs and share Gneezy’s opinion. Many even use tools and ask questions about the cost overlays before actually making a donation.
Researchers even conducted field experiments to test their hypothesis. More donations came through when donors knew that overhead costs were covered by an initial donation. As a result of this, donation rate increased by 80% and donation amount by 75%. Donors feel more confident and involved when contributing directly to the cause, according to the researchers.
The researchers also provide a solution to this problem. They proposed that nonprofits use donations from major philanthropists or corporate sponsors to cover overhead expense. Consequently, small individual donations are used entirely on the project or cause at hand.
The study sure puts into perspective the very foundation of Crowdera. We realize that for the third sector, overhead costs make for a lot of underhand, invisible losses. Including donors and donations, in many cases. Therefore, we provide you a free platform. You can use all the funds you raise for your project.
Go ahead, then, create your own crowdfunding campaign and raise money for FREE! Don’t forget to tell your donors their contribution goes only towards the cause. Happy Crowdfunding @GoCrowdera!!!