Incentive fundraising – how the chance of a small cash prize can double fundraising results

To some people, the idea of incentivising the donor with the chance of a cash prize may seem ‘tacky’ and a bit ‘low brow’. However, from the first church raffle onwards, incentive fundraising has a long and good track record. Now, as fundraisers seek new sources of funds as old ones become more competitive, its time for a new look at giving another incentive to donors. Here’s how some of the most productive schemes work:

Prize draws

Unlike lotteries and raffles, free-to-enter prize draws are not surrounded by regulation and red tape. The basic proposition is ‘ send in your entry ticket which is free of charge and your name will go into the hat with a chance of winning a prize. While sending in your entry, would you consider a voluntary donation?’ This type of prize draw obviously succeeds or fails according to the level of overall response versus the proportion who send a donation with their entry. When done by firms with expertise in this field, results are usually significantly better than conventional direct mail.