A 2005 study by University of Chicago economist, John List, has some interesting implications for non-profits working with donors.
List studied several different fund-raising approaches to identify those that were most effective. One of the key findings--attractive women were able to raise a lot of money if a man answered the door--is hardly surprising. But he also found that selling raffle tickets was far more effective than soliciting voluntary contributions (i.e., asking for money.). How much more successful?
- Lotteries raised about 50% more money than asking for contributions.
- Raffles increased participation rates by 100%--in other words, twice as many people bought raffle tickets.
- Increased participation meant larger "warm lead" lists to be used the next time the agencies wanted to raise money.
In effect, raffles paid double dividends, raising more money immediately, as well as providing agencies with larger lead lists for the longer term. Something to consider the next time you're thinking about fundraising. . .
Thanks to Slate for the study.
Comments