Jan
6
2012

Finance Fridays: Freakonomics On Donor Motivation

An article by Matt

Several weeks ago Freakonomics did a story for Marketplace about the motivations of donors. Marketplace’s interest in the story is understandable, seeing as how it is a publicly supported program produced by American Public Media. I found the story fascinating, as I think you will as well, but I was having a struggle seeing if there was a way to apply some of what I heard to the church. I asked Marc Pitman (who turns 40 today), of fundraisingcoach.com fame, and Jon Sturdevant, a Generosity Strategist with Generis to share their thoughts on how the podcast relates to the church world. Listen into the segment below, and let’s see what Marc and Jon have to say about what the church can learn from this:

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Marc’s response:

My initial response is that churches don’t have much to learn from this report. The report talks about matching gifts and raffles—two fundraising approaches that most churches I know of don’t use. You see, fundraising in the church is more about stewardship and discipleship: it’s about the heart of the giver reflecting the Heart of the Giver.

It’s not about raising as much money as possible. Sometimes it would be easier if it were. Maybe that’s why we see churches resorting to craft sales and car raffles. I think the only way pastors could employ the “one and done” approach or matching gifts is for special projects: outreaches to the community, a Christmas gala, a building renovation. That sort of thing.

Rather than resorting to gimmicks, I think pastors need to get over their fear of talking about money. Money is something Jesus talked about more than heaven and hell. Money is what most of their church members and visitors commit the best part of their waking hours to pursuing. If pastors aren’t talking about money, giving being just one part of that, then they’re not pastoring.

And pastors need to lead. They need to be the first to give 10% of their gross income. And the church budget ought to reflect a tithe. I think fundraising problems in the church are more an issue of leadership than it is of fundraising.

Jon’s response:

Churches have a few things to learn from this podcast. The first is that the “seed money” approach should apply in a way that is obvious to church attendees, but not necessarily as it would apply in the context described in the podcast for traditional non-profits or institutions.

Church attendees should feel the church is invested in specific areas of ministry, and their tithe will go to affect change and impact in these areas. If it is important enough for the church to contribute a significant, even sacrificial amount, then it is worthy of the member/attendee’s gifts/tithe. The church should be unashamedly asking for gifts, but they should also be providing a context for how they are making a difference in the Kingdom. The church must claim the recipient as worthy of investment, demonstrate a history of good rapport, and then an encouraged church body will engage more completely with the particular mission or project.

A match doesn’t really work in the church. This is not to say that it could not work, but most of the time a match is used it’s a gimmick… An afterthought from a donor who wants to increase the impact of a gift, the money (up to a certain amount) is given anyway (regardless of the results of the match), and in a church context this is a little disingenuous*.In the church world, before someone begins to wonder where, and how much, to give they come to the point of desiring to give. This is a result of discipleship, influence, and a generous heart – a reflection of Christ’s love for us. This is rarely natural, but is grown. This particular sort of growth takes work and time, and is not be reached by simply instituting a matching gift. Discipleship to the point of generosity is not a corporate process, but one for individuals, couples, or families.

For Dick Smith, Mike Ditka would say “Stop It!” I’m not sure what his motivation is – does he just want to be heard? Is he finding extra recognition as a philanthropist? Frankly, for someone who is at the income level he seems to be touting, giving 20% of his income is not in fact very generous. I’ve encountered many people at his income level, or well below, who give FAR more than 20% of their income away – some give all of it. Yet, you would never hear their name attached to a significant gift.

Calling people out is a terrible tactic – challenging them to action, however, may work. ROI, Dick. ROI. Invest a little more energy.

*This in no way minimizes the generosity of each and every gift made in these cases as they are usually large and sacrificial in themselves.

What say YOU? Are there any lessons to be learned by churches in this podcast?