What are the effects of using smaller gift examples in legacy marketing?

In their research paper, James and Routley examine the effect of using small gift references in charitable bequest marketing. Previous studies have shown that using small gift examples can boost the numbers donating but at the same time reduce gift sizes in fundraising. This study is the first randomised controlled experiment testing how this strategy impacts bequest gifts.

The findings reveal that referencing lower estate percentages (e.g., 1% or 2%) significantly decreases the intended bequest gift size while also slightly reducing the likelihood of leaving a legacy. The anticipated tradeoff between participation and gift size is not observed: higher percentage examples (e.g., 5%, 10%, 20%) lead to greater statistical significance in reducing gift likelihood, while their impact on gift size reduction becomes less pronounced. In contrast, using small giving amount examples does not significantly affect participation, but a lower example did reduce the intended gift size.

James and Routley argue that legacy fundraising metrics should focus on gift size rather than participation rates, as large estate gifts dominate charitable bequest income. They further suggest that charities should pause or test the use of small gift prompts before applying them, as marketing strategies that increase participation at the expense of gift size can hurt long-term revenue.

Read The Negative Effects of Small Gift References in Charitable Bequest Marketing (Russell N. James & Claire Routley, Journal of Philanthropy)