10 Behavioral Design Techniques that NGOs Can Use to Generate More Donations

Behavioral Design gives NGOs tools to gently influence the behavior of their target audiences. Behavioral Design is a field of research that studies human behavior. NGOs can leverage these insights—both in fundraising and in their programs. In this article, you’ll learn how targeted measures from the field of Behavioral Design can lead to increased donations.

What is Behavioral Design?

Behavioral Design is a subfield of behavioral sciences and focuses on the practical application of shaping environmental conditions. It involves a deep understanding of human behavior (“Behavioral”) and corresponding measures (“Design”) to influence it.

Behavioral Design encompasses various concepts that can be applied to influence human behavior. These techniques aim to steer people toward making better decisions, thereby achieving positive outcomes. However, the use of “Dark Patterns”—manipulative design elements—is a negative application of these insights, designed to trick people into actions they don’t really want to take.

Why is Behavioral Design important for NGOs?

Behavioral Design offers NGOs many opportunities to gently encourage people to make certain decisions. This could include participating in a project or making a donation. The concept helps NGOs understand donor behavior and better stimulate their motivation. In “Ask a Behavioural Scientist: Part 1,” Dr. Kiki Koutmeridou explains how behavioral sciences can be used in fundraising to better motivate donors. For example, major donors are often motivated by personal influence and the professionalism of an organization, while smaller donations are driven by strategies like suggested contributions and appeals to social norms. More on this later.

Behavioral Design Techniques for NGOs

What psychological concepts exist in Behavioral Design, and what actions can be derived from them?

1. The Anchoring Effect

This concept describes how people base their decisions on an initial value. In fundraising, this means that people use suggested donation amounts to set the level of their own donation. Higher anchors lead to larger donations, while lower anchors increase conversion rates.

A donation goal, such as in a campaign or fundraising drive, can also serve as an anchor. People may be motivated to donate more than they originally planned to help reach the donation goal.

2. The Tendency Toward the Middle

People tend to choose the “golden middle.” This means that when presented with three options, they often choose the middle one—for example, when faced with three suggested donation amounts, they tend to choose the one in the middle. NGOs can use this to increase their average donation by setting appropriate suggestions.

The tendency toward the middle can also be used to encourage people to make regular donations. By designing a website to show three ways to support the organization—one-time donation, recurring donation, and major donation—the middle option is most likely to be chosen.

3. Nudging

Nudging means “gently pushing” and describes the idea of subtly influencing people without forcing or persuading them directly. This can include measures such as pre-setting a specific donation amount or a recurring donation in the donation form. Even a prominent donation button that encourages users to click on the donation form is an example of nudging.

4. Reinforcement Learning

Positive reinforcement sustainably promotes desired behavior, as it makes the decision feel voluntary. This increases the likelihood that the behavior will be repeated. For example, if regular donors receive an ongoing, engaging newsletter or magazine from the organization, it serves as a reward for their decision. They will perceive this positively and are more likely to continue donating regularly than someone who was persuaded against their will and received no reward.

Personal appreciation can also be seen as a reward for donating. This could be a personalized letter, a handwritten thank-you card, or a personal phone call.

5. Loss Aversion

People feel losses more strongly than they feel the joy of gains. The threat of loss, therefore, acts as a motivator. In practice, this could be a donation appeal that shows what would happen if no one donated and the organization ceased to exist. Another example is a missed opportunity, such as a matching gift campaign where a company doubles your donation if made within a certain timeframe.

Another way to use loss aversion is by offering special perks, such as T-shirts or tickets to exclusive benefit events, for donations made within a certain period.

6. Social Proof

People tend to follow the behavior of others. When it is shown that other, similar individuals have already donated, it increases the likelihood that others will do the same. This is particularly effective in fundraising campaigns where the total amount donated or individual donations are visible.

Sharing donations on social networks or using testimonials and donor quotes also appeals to others to do the same. Social proof also fosters a sense of belonging, a fundamental social need.

7. Scarcity and Urgency

A scarce resource is more likely to be purchased than one that is abundantly available. This also applies to fundraising, such as the previously mentioned example of a matching gift campaign within a limited time period. Offering a limited number of tickets for a benefit concert also uses scarcity as a motivation.

Urgency is another factor that motivates donors. This can be utilized in situations like natural disasters where immediate help is needed. It can also be applied to other causes, such as raising funds for an urgent operation for a child or a petition against a law that is soon to be passed.

8. Identity Priming

This approach involves activating specific identities of a person to encourage desired behavior. In fundraising, depending on the target group and cause, this could involve appealing to someone’s identity as an environmentalist or humanitarian to motivate donations. This can be done intentionally by choosing the wording in a donation appeal to address the relevant identity.

Major donors often prefer to see themselves as individual benefactors rather than part of a group, so emphasizing personal impact is important here. On the other hand, smaller donors are often more motivated by being part of a group (e.g., “supporters” or “members”) and tend to respond more to collective appeals (“together we can…”). This is an example of different donor identities and the ways in which they are best addressed.

9. Reducing Behavioral Barriers

The easier it is to perform an action, the more likely it is to happen. Therefore, NGOs should make the donation process as simple as possible, for example, by offering one-click donations, a good mix of payment options, streamlined and easy-to-understand donation forms, and mobile optimization.

The website with the donation form should also be clear and easy to navigate so as not to create any barriers to making a donation.

10. Encouraging Reciprocity

Reciprocity refers to the desire to give something back when you receive something. In fundraising, this could be small gifts, or it could be information or entertainment. Valuable guides, for example, can be a good motivation for donating. The key here is that donors feel they are receiving value from the organization.

Challenges and Ethical Considerations

Behavioral Design can have strong effects, but it also presents ethical challenges. One of these is ensuring that the techniques used respect people’s autonomy and are not manipulative. There is a fine line between nudging towards a decision and manipulation, which could jeopardize trust in the organization. Moreover, organizations must be transparent and ensure that the psychological approaches they use align with values of honesty and fairness.

Autonomy: People should be free to make their own decisions. Behavioral Design techniques should aim to facilitate choices, not to enforce them. An excessive use of nudging can be perceived as manipulative influence.

Avoidance of Dark Patterns: Techniques that pressure donors into unwanted actions should be avoided, as they can damage the long-term trust of supporters.

Fairness: Behavioral Design should be fair and inclusive, not targeting weaker or more vulnerable populations to exploit them.

Steering Gently with a Light Touch

Behavioral Design is a powerful tool in fundraising and is often already being used without a conscious understanding of the concept behind it. The science-backed approach helps NGOs get the most out of their fundraising efforts and gain a deeper understanding of human behavior. However, every organization must tailor its fundraising strategies to its specific target audience and their motivations. There is no “one-size-fits-all” solution, even in Behavioral Design.