Applying behavioral insights to charitable giving can make a huge difference in influencing the amount of donations to charity (Cabinet Office, 2013).
Making it easy for well-off individuals to donate
Based on various literature on behavioral science, making it easy for well-off individuals to donate can go a long way in encouraging charitable giving (Cabinet Office, p 8, 2013). An institution seeking to encourage charity donations from high net-worth individuals should first make it easy for them to do so. For instance, the institution can provide an option to philanthropic individuals to increase their future donations in order to manage the effects of inflation. In addition, automating the process of donation can also make it easy for individuals to take part in charitable giving. For instance, there are some big companies that automatically enroll their senior executives in donation schemes that provide them with a choice to withdraw.
Making charitable giving attractive
Making charitable giving attractive is another key behavioral insight that can increase donations. Charitable organizations can attract people's attention by using various incentives such as gifts. Providing incentives can encourage individuals to engage in charity due to the reciprocity aspect. Additionally, communicating the objective of a charity drive as well as its impact on the beneficiary can greatly encourage people to make donations (Cabinet Office, p 10, 2013). This is because most people like to be associated with charitable activities that have visible effects/outcomes.
Applying social influence to encourage charitable giving
Last but not least, charitable organizations can apply social influence to encourage charitable giving. Most people are usually influenced to act in a certain manner by the actions of others. For instance, an individual with a high social stature can influence other people to donate to a certain cause by declaring his/her intention to support the charity drive.
References
Cabinet Office, 2013. Applying behavioural insights to charitable giving.
