Buying a product and making a donation are two very different things. When I am buying a product, I am told how much it costs and I can shop around for the best price. When I am making a donation, it is usually for an arbitrary amount, perhaps guided by a recommended donation amount or a very large fundraising goal. Additionally, when I’m buying a product, I can read customer reviews to look for the right product, as well as write customer reviews if I have a particularly good or bad experience. I am not sure how I can give feedback on a donation in this way.

To sum up the main difference between buying a product and making a donation:

1. Products have well-defined costs, Donations do not
2. Products have easily accessible feedback channels, Donations do not
3. Products are an end, Donations are a means to an end

My question is, why can’t donations be treated more like purchases of products? But before I answer that question, I should answer the prerequisite question: “Why should we treat donations more like purchases of products?”

Simply put, at least in the U.S., people love to consume. The U.S. Retail Market was over 4 trillion dollars in 2009. Compare this to $303 billion in donations the same year. Admittedly, that’s a slightly arbitrary comparison, but my main proposition is that, since people in the United States are manic consumers of products, if we treat donations similarly, we would be able to increase donations significantly. We can do this in the following ways:

1. Tie donations to specific needs with well-defined costs
2. Create easily accessible feedback channels throughout the donation process
3. Make donations more like a “purchase” of something with tangible value, e.g. show them the result of their donations

Tying donations to specific needs with well-defined costs gives the donor a better understanding of how much they should give to make a significant impact. This will likely increase donation size since donors know what they are “purchasing”, e.g. $200 for a laptop or $1000 for a sponsorship. Creating easily accessible feedback channels allows organizations and donors to build meaningful relationships and increase repeat donations. Finally by showing donors the result of their donations, you are essentially completing the “purchase” and feedback loop, which would also increase the likelihood of the donors giving again.

Agree or disagree? Let me know!