Raise Cost Minimums in Donations

Charities often depict small costs.

• $1 can provide a meal
• $2 can provide a mosquito net
• $3 can provide a book for a child

Intuitively, people should donate more. A $1 meal? Why not donate 10 meals?

But in reality, the opposite can happen. Instead of seeing these costs as an economic multiplier, donors can perceive these costs as a target.

In one study, people donated whichever amount matched the cost of a mosquito net:

• $3 net? They donated $3.
• $7 net? They donated $7.

Indeed, small costs can lower donations (Lewis & Small, 2024).

But anchors can't be too high either. In a follow-up study, the same researchers mailed a letter to 190k+ donors:

• If donors previously gave $10 to $50: A $10 request worked better than $50.
• If donors previously gave $50 to $100: A $50 request worked better than $100.

How to Apply

• Ask For 10% Below a Previous Donation. Revenue was highest in this condition (vs. 50% below, 25% above).
• Multiply a Small Anchor. Mention that $10 can provide five nets.
• Compare Donations to a Petty Expense. Customers feel guilty if they see an emotional comparison (e.g., for the cost of a latte).

• Lewis, J., & Small, D. (2024). Hitting the Target but Missing the Point: How Donors Use Cost Information. Journal of Consumer Research, ucae061.