Incentives - Do They Work for Fundraising?

We are all accustomed to the membership drives of PBS and NPR that provide material incentives for people to sign up and support these great public services. Depending on what level of membership one buys, you might get a coffee cup, tote bag, book or free DVDs of past programming.

Many nonprofit organizations do use incentives to get people to give. But, do they work?

In a fascinating new book, SWAY: The Irresistible Pull of Irrational Behavior, authors Ori Brafman and Rom Brafman tell us that recent brain research might indicate that monetary incentives for an altruistic cause are actually counterproductive.

It seems that the brain lights up on MRI scans in different places when it comes to getting money and when giving altruistically.

When subjects played games that involved monetary compensation, the pleasure center of the brain lit up on MRIs. The pleasure center (the nucleus accumbens) drives addictions such as to drugs and gambling; but it also drives the reaction to financial compensation. As the authors point out, "...the more money there is on the line, the more the pleasure center lights up. A monetary reward is--biologically speaking--like a tiny line of cocaine."

Researchers then had subjects play a game where, instead of earning money for themselves, they were told that the better their score, the more money would be donated to charity.

The pleasure centers of the subjects during this game stayed quiet, but another part (the posterior superior temporal sulcus) of the brain kept lighting up. This part of the brain is responsible for social interactions. It controls how we relate with others and form bonds. The researchers had found what might be called the "altruism center" of our brain.

Furthermore, the research revealed that the pleasure center and the altruism center cannot function at the same time. One or the other must be in control. In addition, in order for the pleasure center to motivate behavior, the financial incentive had to be substantial. Too small a monetary incentive caused subjects to try less hard in games, not more.

The researchers found that, in games that were altruistic in nature, subjects, who were motivated positively, lost their motivation when small financial rewards were introduced.

There seem to be two so-called engines in our brains that can't operate simultaneously. We have the option to approach a task either altruistically or from a self-interested perspective, but not both.

These two engines also need a different amount of fuel in order to fire up. It doesn't take much for the altruism center to rev up - all you need is a sense that you're helping someone or making a positive impact in some way. But the pleasure center needs a lot more, how much depends on the task and the incentive.

As the authors point out, you might be willing to help a friend move on a Saturday because you're willing to help out. But, offered $10 for helping in the move, it is likely that you will be less motivated and suggest that your friend look into professional movers. The small financial incentive actually becomes a disincentive.

Should we reconsider the use of incentives in fundraising? What do you think?

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