Donor Responses to Out-group Beneficiary Profiles in Direct Mail Fundraising: A Canadian Case Study

Abstract

ABSTRACT Charities that fundraise from the public can feel competing pressures to be as efficient as possible in their fundraising efforts and to accurately and ethically reflect their services and beneficiaries in their fundraising materials. At the same time, the number of donors giving to charity is in a long-term decline. These pressures may lead charitable managers to make trade-offs when designing and implementing their fundraising programs. In this case study, two direct mail solicitations using different types of beneficiaries from one Canadian charity are examined to see how those trade-offs affect fundraising results. When aggregated, the differences between an out-group beneficiary profile and an in-group beneficiary profile appear subordinate to larger market-level externalities when all else is held equal. When disaggregated, there appears to be a change in donor behavior at the lower end of donation amounts in some markets and community types. The results of this study suggest that fundraiser tactics that narrow in on the preferences of a small segment of donors may be contributing to declining numbers of donors.