From the Desk of: Steve Elliott

We've been talking about year-end fundraising (here and here).

So let's continue with a brief discussion of the Challenge.

+ + The magic of the challenge...

Most major campaigns and year-end campaigns involve Challenges for one simple reason: they work.

According to readily available sources, a challenge campaign increases giving significantly. Philanthropy Works cites a 19% increase with a challenge. The number may be more. This study of an Alliance Defending Freedom challenge found an 87% increase, and another for Museum of the Bible saw a 50% increase. A site called Double The Donation (perhaps with an inherent bias?) reports:

• "84% of survey participants say they’re more likely to donate if a match is offered.
  
  
• 1 in 3 donors indicate they’d give a larger gift if matching is applied to their donation.
  
  
• Mentioning matching gifts in fundraising appeals increases the response rate by 71% and the average donation amount by 51%.
  
  
• One study reported that the average matched gift was between 1.5 and 2X the size of the average unmatched gift."

+ + Why the magic...

So challenges work. But why?

All the reasons you suspect. A challenge creates a goal, is time sensitive, focuses on the larger purpose you are pursuing, and has a tangible benefit to both the person(s) providing the challenge and those meeting the challenge.

For campaigns such as year-end, the challenge helps to frame the series of messages and gives the organization something to move toward with a fixed deadline. 

+ + How to not lose your soul...

Of course, there's the issue of whether challenges are ethical.

The simple answer is, yes. Just be careful.

The main question is regarding whether your "challenge" pool of funds is actually at risk. If you are doing an actual, at-risk challenge (a "matching gift"), then make that very, very clear.

In my experience, most organizations are not actually doing challenge "grants" that must be matched or the organization loses the challenge. "Challenge Gifts" are more motivational than legal. If you are doing a non-contingent "challenge gift," be sure to present your "challenge" to both sides of the exchange in such terms. (Go here to read ECFA's guidelines on challenges.)

+ + A few concluding thoughts

Here are a few thoughts for your year-end challenge:

1. Remember that the "challenge" campaign has two phases. You must first secure the challenge gifts. This is a great way to jump start your year-end campaign and get a running start toward your year-end goal.
   
   
2. Tie your challenge goal to the larger year-end goal. The challenge needs to be large enough to move the needle.
   
   
3. Keep it simple. A one-to-one challenge. Larger ratios (two produces one) don't seem to increase giving.
   
   
4. Clearly show the impact of the challenge: $100 has the impact of $200, etc.
   
   
5. Start with a mini-challenge just for Giving Tuesday. It's a great time to test your messaging in a condensed, very urgent time constraint.

All this makes me think that you can "double" the impact of this email by....

Well, never mind!

Let's chat, and here's to a Happy Year End!

Steve Elliott

P.S. It's still not too late to launch year-end direct mail (but we're getting close!). We have an amazing partner who can get your message out. Let me know if we can help.

Set up a 15 minute call with Steve.

Have a co-worker or friend you'd like to receive "ideas"? Add them here or forward this link

 © 2025 Steve Elliott. Grassroots Action, Inc. 

.