Do matching gifts improve revenue and outperform challenge gifts?
This experiment examined the effectiveness of matching gifts and challenge gifts. Three groups were involved: One received a true matching gift offer, another received a challenge gift offer, and a third received neither.
Setup and Timeframe
The test was conducted over three direct mail appeals in the Easter timeframe. The client’s donor file received matching gift offers often but had not received any challenge gift offers before. The copy for matching gift vs challenge gift used ECFA’s definitions: The ECFA defines a matching gift as one that represents a gift that is contingent on the gifts of other donors to receive it, while a challenge gift represents a noncontingent gift that becomes a "challenge" for other donors to also support the same charity.
- Group A: Received matching gift offers across all three campaigns.
- Group B: Received challenge gift offers across all three campaigns.
- Group C: Received no special offers across all three campaigns.
Results
- Matching Gifts increased the GYPM (gross yield per thousand) by 20%.
- Challenge Gifts showed no significant difference compared to the control group (Group C).
Key Learnings and Recommendations
- Superiority of Matching Gifts: Matching gifts significantly enhance donor response and revenue, highlighting their appeal and effectiveness.
- Limited Impact of Challenge Gifts: Challenge gifts did not significantly alter donor behavior for this client when compared to campaigns without special offers. However, this may be due to the audiences’ unfamiliarity with this type of offer and impact language.
