Deep Dive on Donor-Centric Commerce
Written by: Jeremy Lakey on Saturday, 09 June, 2018
Closing the loop on identifying your donors interests and what motivates them to donate.
Knowing where your donor base is coming from is possibly the most important thing to knowing how to communicate with them and keep them coming back to support you and your mission. Do your donors respond better to your twitter campaign, instagram images, or facebook posts? nKind identifies the channel by which your users arrive at your site to create and account and also which channel causes them to place a donation. Identifying which channels your donors arrive at your site and ultimately decide to donate to your cause will allow you to increase your exposure in those areas and correspondingly increase your donation revenues.
Donation for variable amounts as well as suggested amounts, tailored to the donor.
The use of a highlighted default suggested value leverages a marketing technique called anchoring. This relies on the brain’s tendency to heavily rely on the first piece of information (such as price) offered when making decisions. In the case of donations, it will cause people to tend to give closer to the anchored value than they otherwise might have. It is important to understand that it can work in both directions, though. Small gifts might come up in average value, but you’ll want to watch to see if your larger donations also tend to move down towards the anchor. Anchor too high and your average online donation might come up, but the number of donations might begin dropping off costing you money in the end. Anchor too low and you might get more donations, but see a drop in average value.
Of equal importance to the suggested amounts is allowing your constituent to donate an amount of their choosing. We have seen that donors typically will give five to ten times more than the suggested minimum donation if the option is given.
Fair-Market-Value (FMV) and its implications for End-Of-Year (EOY) Tax Statements.
At the end of the year, most non-profits are required to send tax statements to their donors to file with their income tax statements (and most donors would really like to receive them). Any FMV must be deducted from these amounts however for promotional items received as a result of this donation. nKind tracks those promotional items on orders and will prepare a summary report of the actual deductible amount for your constituents donations in a given year to help you prepare those tax statements accurately, quickly, and with ease.
Premium Promotional Items for Donation.
Many ecommerce packages provide the promotional functionality of coupon codes, special offers, discounts, free shipping, and the like. nKind provides those as well, and also extends the concept into Promotional Items for Donation. Giving an item in return a donation is a concept that can help increase your donation revenues, and nKind has several promotional templates for making these offers easy to extend.