Public radio pledge drive challenge fails

November 15, 2018 11:00 AM

For the "need 50 callers by the end of the hour to unlock this $5,000 dollar challenge" type of fundraisers, what happens to the gift if not enough callers call in by the deadline? Does the donor typically keep the money and donate it to another cause? Donate it to the radio station anyways?
posted by msittig to Media & Arts (5 answers total)

I've funded challenge gifts in the past (though not to public radio). I'm a regular donor to these organizations. My challenge funding is often my regular donation, simply allocated to that use. I've never not had them reach the threshold to get my challenge funds.

Assuming it's in lieu of my regular donation, if they didn't reach the number necessary to get the match, I'd donate it anyway.

In the circumstances where it's on top of my regular donation, I'm honestly not sure what I would do if they didn't reach the threshold. I think I'd likely not donate it, but I'm not sure if that's a typical sentiment among other people in my position or not.
posted by NotMyselfRightNow at 11:31 AM on November 15, 2018

This post observed that KQED challenge grants were structured to make the target impossible to miss. And Givewell said that they decided not to have challenge grants because it would just be a restructuring of grants that would have been made anyway.
posted by Mr.Know-it-some at 11:33 AM on November 15, 2018

This post observed that KQED challenge grants were structured to make the target impossible to miss.

This has also been my experience in nonprofits. I wouldn't call it a scam, though. It's just marketing.
posted by showbiz_liz at 11:42 AM on November 15, 2018 [3 favorites]

Best answer: It depends on the donor. I can't speak to public radio specifically, but I do work in annual giving and we've had both. We've had certainly had come to us and say "I'll give you [amount] if you can match by [date]" and also have used already-pledged gifts as a match. We've also solicited major gifts based on matches -- "If we can raise XXX, will you match it?" (This last type is my favorite and is the most attractive to both sides. It also feels the most honest.)

You would also most certainly structure the challenge in such a way it was almost guaranteed to be successful. You'd have historical data on the typical number of gifts given in that period (maybe for that specific call break, in this case), so you'd feel very confident you're going to meet the goal you set.

In giving, it is very important to set and advertise achievable goals. If your org says "We're going to raise $100,000 today" and you only get half that, donors will perceive your org as perhaps "failing" and perversely will actually be less likely to give. But if you say "we only need four more gifts to meet our goal" you're much more likely to get 10 or 20, as everyone wants to be "the one".

Basically, all fundraising is psychology.
posted by anastasiav at 11:43 AM on November 15, 2018 [7 favorites]

Response by poster: Thanks everybody for your answers!
posted by msittig at 3:26 PM on November 16, 2018