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

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

Their findings reveal that referencing lower estate percentages (e.g., 1% or 2%) can significantly decrease the intended bequest gift size while also slightly reducing the likelihood of leaving a legacy. The anticipated “tradeoff” between participation and gift size was 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 more usefully 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 may hurt long-term revenue.

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