The Science of Legacy Fundraising (Behavioural Economics) IOF Legacy Summit September 2015

Transcription

1 The Science of Legacy Fundraising (Behavioural Economics) IOF Legacy Summit September 2015

2 Introductions Centre for Sustainable Philanthropy Listen s Legacy Team Context of research

3 How can the latest academic thinking can be applied to telephone legacy fundraising? Understand what psychological factors drive legacy decisions; Optimize the application of this understanding during telephone conversations; and Identify the most meaningful and positive way to support legacy decision-making.

4 Theories Tested Social information Feelings versus Reasoning Values and Need

5 How we did it 6 test campaigns over the course of 12 months Incorporated appropriate test theory into each script Randomised data Briefed Listen Legacy team to research conduct Anonymised data analysed by CSP

6 How we did it Script structure Legacy need & intention question Information offer Outcomes Pledger, Intender, Considerer, Enquirer = YES Soft No, Hard No = NO

7 Test 1 Social Information / Will Aid offer Call based around Will Aid offer Testing social information Minority vs Majority

8 Test 1 Social Information / Will Aid offer Condition 1 Condition 2 1/3 of our most loyal supporters haven't made a will. 2/3 of our most loyal supporter have made a will. Many of them are taking advantage of the Will Aid Scheme. Many of them took advantage of the Will Aid scheme.

9 Test 1 Social Information / Will Aid Offer YES% 24% 16% 1/3 haven't made will 2/3 have made will

10 Test 1 Social Information / Will Aid Offer Considerer Intender 18.34% 1.81% 11.68% 0.76% 1/3 haven't made a will. 2/3 have made a will. 1/3 haven't made a will. 2/3 have made a will.

11 Test 2 Social Information - Built on learning from Test 1 (minority vs majority) - Not just the what, but what changed - Moved social information to information offer

12 Test 2 Social Information Condition 1 Condition 2 Legacy Need & Intentions Information offer But in recent years, we have seen a drop in the number of legacies we are receiving. Many of our supporters that we ve sent one to have found it very helpful. Can I send you one too? Recently, we have seen an increase in the number of our supporters enquiring about gifts in Wills. Many of our supporters that we ve sent one to have found it very helpful. Can I send you one too?

13 Test 2 Social Information A drop in the number of legacies we are receiving. An increase in the number of our supporters enquiring NO% 71.05% 74.74% YES% 28.95% 25.26% Total 100% 100%

14 Test 2 Social Information Soft No Considerer 19.41% 14.71% 11.70% 10.27% A drop in the number of legacies received An increase in the number of our supporters enquiring

15 Test 1 3 Feelings vs Reasoning Feelings vs Reasoning The moment supporter first chose to get involved Social information included at information offer

16 Can you tell me what inspired you to support the Charity X? Test 3 Feelings vs Reasoning Legacy Need & Intentions Control Condition 1 Condition 2 We know that people have many different reasons for supporting the Charity X. We know that people have many warm feelings about becoming a Charity X supporter. Can you recall the moment when you were inspired to become a Charity X supporter? Can you tell me what inspired you to support Charity X?

17 Test 3 Social Information Information Offer Control Condition 1 Condition 2 Would you be interested in Many supporters that we ve sent the Many supporters that we ve sent the receiving the information pack to information pack to information pack? have found it extremely useful. Can I send you one too? have found it extremely useful. Can I send you one too?

18 Test 3 Social Information Considerer Enquirer 22.68% 18.28% 10.12% 6.87% Control Social Information

19 Values vs Need Test 4 Values VS Need 2 separate test conditions how important are charity s values growing need vs less need

20 Test 4 Values VS Need Legacy Need & Intentions Condition 1 Condition 2 - many supporters feel a strong connection with Charity X through their commitment that all children deserve a safe and happy childhood. Thinking about what first inspired you to become a Charity X supporter, how important to you is ensuring that all children have a safe and happy childhood? which is why the Charity X need to keep evolving. Looking to the future, do you feel there will be a growing importance or less of a importance placed on Charity X s work protecting children?

21 Test 4 Values Other Very important Hard No 60.18% 1.61% Not interested ever 10.35% 23.82% Not interested now 8.60% 22.21% Enquirer 19.57% 48.76% Intender 0.24% 1.24% Pledger 1.05% 2.36% Total 100% 100%

22 Test 4 Need Other Growing Need Hard No 59.86% 1.16% Not interested ever 10.77% 22.14% Not interested now 9.15% 19.82% Enquirer 18.90% 53.41% Intender 0.39% 0.51% Pledger 0.94% 2.96% Total 100% 100%

23 Values vs Need Test 5 Values + Need Additive effect if asked together? Values VS Need

24 Test 5 Values + Need Legacy Need + Intentions Charity X places justice, compassion and love at the heart of everything we do, and these are values that many of our supporters firmly believe in. Thinking about what inspired you to become a long-term Charity X supporter, which of these values do you feel are most important? Condition 1 Condition 2 Looking into the next 70 years, do you think there will be more or less of a need for Charity X to end poverty? -

25 Test 5 Values + Need Values + need Values 22.65% 19.23% 5.92% 5.13% 0.64% 0.51% Considerer Enquirer Intender

26 Test 6 Past Need / Future Need Built on learnings from Test 4 Past Need vs Future Need

27 Test 6 Past Need / Future Need Legacy Need + Intention Condition 1 Condition 2 Disease X touches so many Disease X touches so many people, but we are dedicated to people, but we are dedicated to continue our research into better continue our research into better ways to understand, diagnose and ways to understand, diagnose and treat Disease X. Do you mind if I treat Disease X. Do you mind if I ask whether you know anyone ask whether you know anyone who you think might have who you think might benefit in benefited in the past from the the future from the work we do at work we do at Charity X? Charity X?

28 Test 6 Past Need Future Need Hard No 45.90% 45.93% Not Interested Ever 25.35% 25.13% Not Interested Now 11.44% 10.23% Considerer 13.91% 13.69% Intender 1.08% 1.73% Pledger 2.00% 3.00%

29 Key Learnings 1 Other s past actions (minority action) Effective 1/3 of our most loyal supporters haven't made a will. Many of them are taking advantage of the Will Aid scheme. 2 Other s past actions as an indication of growing need Effective But in recent years, we have seen a drop in the number of gifts in wills we are receiving. That s why we feel its so important to learn what our supporters think about them.

30 Key Learnings 3 Importance of charity values Effective + Meaningful Thinking about what first inspired you to become a Charity X supporter, how important to you is? 4 A direct ask of growing need Effective + Meaningful Looking to the future, do you feel there will be a growing need / importance placed on our work?

31 Key Learnings 5 Information Requests + Social Information Effective + Positive Many supporters we ve sent the information to have found it very helpful. Can I send you one too?

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33 Contact Details Jen Corbett Legacy Manager, Listen Tel: Jen Shang, Claire Routley Centre for Sustainable Philanthropy Tel:

34 References Cabinet Office (2014). Applying behavioural insights to charitable giving. Available from: [Accessed 1 June 2015] Darley, J and Latané, B (1968). Bystander intervention in emergencies: diffusion of responsibility. Journal of Personality and Social Psychology, 8, Greenberg, J., Pyszczynski, T. & Solomon, S. (1986). The causes and consequences of a need for self-esteem: a terror management theory. In R. F. Baumeister (Ed.), Public self and private self (pp ). New York: Springer-Verlag. Jenni, K and Loewenstein, G (1997). Explaining the Identifiable Victim Effect. Journal of Risk and Uncertainty, 14, Konkoly, T. H and Perloff, R. M. (1990). Applying the Theory of Reasoned Action to Charitable Intent, Psychological Reports, 67, 1, Shang, J and Croson, R (2008). The impact of downward social information on contribution decisions, Experimental Economics, 11, 3, Shang, J, Reed, A and Croson, R (2008). Identity Congruency Effects on Donations. Journal of Marketing Research, 45, 3, Small, D, Loewenstein, G and Slovic, P. (2007). Sympathy and callousness: The impact of deliberative thought on donations to identifiable and statistical victims. Organizational Behaviour and Human Decision Processes, 102, 2, Solomon, Greenberg, & Pyszczynski, A terror management theory of social behavior: The psychological functions of self-esteem and cultural worldviews. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology: Vol. 24. (pp ) New York: Academic Press.