Homer Simpson for Nonprofits

How to win your supporter’s left brain, right brain and heart with behavioral economics.

April 2010 By Katya Andresen

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1. Understand Homer, but don't use his ethics.

There is a line between using principles of behavioral economics to manipulate rather than persuade. In "Nudge," Sunstein and Thaler refer to this concept as "Libertarian Paternalism." In this context, libertarian means people should be allowed to do what they like — even if it is eating junk food, using plastic grocery bags, driving Hummers or not saving a dime. Paternalism means it is legitimate to try to influence people's behaviors in order to make their lives better and guide them to choices that benefit the greater good.

When combining libertarianism and paternalism, choices are never blocked off. People may continue to do as they please. However, the choices are designed to influence a particular outcome that will make the choosers better off.

Each time you have the luxury of designing a choice for your audiences, consider the concept of libertarian paternalism. Design the choice not to block off options, but to influence a certain outcome. A simple example of this in action is a pre-checked opt-in box for your online communications subscription. Or even holding your fundraising auction before your gala dinner.

2. The left brain need not apply.

We are literally of two minds: the rational mind and the emotional mind. Both sides compete for control, and the emotional mind typically wins. To get people to donate money means we need to focus on the emotional mind first and foremost. Don't be afraid of emotion. It's not sappy; it's what makes people care.

The best way to tap in to the emotional mind is through storytelling. Tell very human stories that exemplify the work of your organization, without using statistics. Incorporate these stories into your fundraising and marketing channels.

Consider ways you can connect your donors to the individual beneficiaries of your work. If you can't do restricted fundraising, think of other creative ways to do this. Can your beneficiaries call new donors and thank them for their support? Can you feature donor and beneficiary profiles in your monthly cultivation message?

3. Stick to social norms, not market norms.

Humans have two distinct decision-making rule books: social norms, which are governed by values of community selflessness and altruism; and market norms, which are governed by calculated self-interest.

Social norms are stronger motivators than market norms. In experiments, under many circumstances people will work harder for free than they will for money. Not long ago, AARP asked lawyers to offer services to the elderly at a reduced rate (market norms). The response was dismal. Then they asked for lawyers to provide free services (social norms). Lawyers tripped over one another to volunteer.

If you are a fundraiser, you live every day on the razor's edge between norms. Major-donor fundraising operates primarily on social values. Direct-marketing fundraising operates on a weird hybrid. What does a major donor get for her support? A sense of camaraderie with like-minded philanthropists; influence and access to organizational leaders (which makes her feel even more a part of things); and the potent psychological rewards of knowing she has made a difference in making the world a better place. What does a low-dollar donor get? Tote bags. Water bottles. Calendars. Certificates of adoption. It's largely a market exchange.

Scrutinize your appeals: Are you emphasizing social norms or market exchanges? Make sure you are focused on the emotional rewards of giving. Segment to avoid a hybrid. Some nondonors and low-dollar donors will solely be motivated to give because of market norms — they want the certificate or the calendar. But others are looking for that emotional connection. Identify who in your file responds to what — and give them that. If you must engage in marketplace rewards, ensure they are highly tied to your cause. If you are saving the whales, think plush toy whales, not coffee mugs.

The full e-book is available at www.fundraising123.org/homer. FS

Companies Mentioned:

AARP

People Magazine

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FROM THE BOOKSTORE

<P>“Blanchard is demanding. He won’t allow you to flip through this book, nod your head, and leave. If you’re in, you’re going to have to invest to get your rewards.” <BR><STRONG>--Chris Brogan</STRONG>, president of Human Business Works <BR><BR>“Social media isn’t inexpensive; it’s different expensive. The human effort required to do it right is significant, and not knowing precisely how social media helps your business and how to gauge that progress is a dereliction of duty. In <EM>Social Media ROI</EM>, Blanchard provides the missing playbook for sensible, sustainable, profitable social communication. It’s about time.” <BR><STRONG>--Jay Baer</STRONG>, coauthor of <EM>The NOW Revolution: 7 Shifts to Make Your Business Faster, Smarter, and More Social <BR></EM><BR>“<EM>Social Media ROI</EM> gets down to the heart of the matter: How will social communications positively impact my organizational goals? Olivier takes us through a journey starting from the start, creating a strategy to achieve objectives, and in turn, the means to measure return on investment. If you want to get serious about online communications, you can’t go wrong with <EM>Social Media ROI</EM>.” <BR><STRONG>--Geoff Livingston</STRONG>, author of <EM>Welcome to the Fifth Estate</EM> and <EM>Now Is Gone</EM> <BR><BR>“Olivier explains the intricacies of building a social media-influenced company for every layman to understand. It is important to understand reach, attention, and influence for social media ROI. This is the book to help with that understanding.” <BR><STRONG>--Kyle Lacy</STRONG>, principal at MindFrame (yourmindframe.com) and author of <EM>Branding Yourself <BR></EM><BR>“Ladies and gentlemen, the social media code has officially been cracked. In <EM>Social Media ROI</EM>, Blanchard reveals how companies can apply the massive power of social media to achieve equally massive results. Incredibly practical, yet supremely enjoyable, this book offers a clear roadmap to growing your revenue in the dizzying world of tweets and retweets, likes and shares, connections and comments.” <BR><STRONG>--Sally Hogshead</STRONG>, author of <EM>Fascinate: Your 7 Triggers to Persuasion and Captivation</EM> <BR><BR>“If you know Olivier, you know he goes beyond the bullshit. He ‘gets it.’ This book will put you in the mindset to successfully plan and achieve real business objectives with social media. It’s a hard fact that good business decisions depend on real results. Olivier avoids the fluff with clear-cut ideas that will help you produce results.” <BR><STRONG>--Brandon Prebynski</STRONG>, social media strategist <BR><BR><STRONG>Use Social and Viral Technologies to Supercharge Your Customer Service! <BR></STRONG><BR>Use this book to bring true business discipline to your social media program and align with your organization’s goals. Top branding and marketing expert Olivier Blanchard brings together new best practices for strategy, planning, execution, measurement, analysis, and optimization. You will learn how to define the financial and nonfinancial business impacts you are aiming for--and achieve them. <EM>Social Media ROI</EM> delivers practical solutions for everything from structuring programs to attracting followers, defining metrics to managing crises. Whether you are in a startup or a global enterprise, this book will help you gain more value from every dime you invest in social media. </P>

Social Media ROI

“Blanchard is demanding. He won’t allow you to flip through this book, nod your head, and leave. If you’re in, you’re going to have to invest to get your rewards.”
--Chris Brogan, president of Human Business Works

“Social media isn’t inexpensive; it’s different expensive. The human effort required to do

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Homer Simpson for Nonprofits