1 / 123

The neuroscience of philanthropy: Lessons for Marketing in Current and Bequest Giving

The neuroscience of philanthropy: Lessons for Marketing in Current and Bequest Giving. Research findings from experimental psychology and neuroimaging. Professor Russell James Texas Tech University. Applications. Family Words Not Formal Words. Philanthropy as

kim-gay
Download Presentation

The neuroscience of philanthropy: Lessons for Marketing in Current and Bequest Giving

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The neuroscience of philanthropy:Lessons for Marketing in Current and Bequest Giving Research findings from experimental psychology and neuroimaging Professor Russell James Texas Tech University

  2. Applications Family Words Not Formal Words Philanthropy as Synthetic Family Research Tribute Bequests Life Stories Visualized Autobiography Family Emotion Mixed Packaging Avoidance Symbolic Immortality Bequest Permanence

  3. Research Philanthropy as Synthetic Family Charitable giving is a social act using the mechanisms of family bonding

  4. First charitable giving fMRI study • Charitable giving is rewarding (like receiving money) • But uniquely involves oxytocin-rich social attachment brain regions (used in maternal and romantic love) “donating to societal causes recruited two types of reward systems: the VTA–striatum mesolimbic network, which also was involved in pure monetary rewards, and the subgenual area, which was specific for donations and plays key roles in social attachment and affiliative reward mechanisms in humans and other animals.” Moll, et al (2006) PNAS 103(42), p. 156234.

  5. Charitable giving as “synthetic family” Increasing neuropeptide “oxytocin” – a family bonding hormone –increases giving Zak, P. J., Stanton, A. A., & Ahmadi, S. (2007). Oxytocin increases generosity in humans. PLoS ONE, 11, e1128

  6. Charitable giving as “synthetic family” Human touch, when followed by a small gift, elevated oxytocin levels AND subsequent charitable giving Morhenn, V. B., Park, J. W., Piper, E., Zak, P. J. (2008). Monetary sacrifice among strangers is mediated by endogenous oxytocin release after physical contact. Evolution and Human Behavior, 29, 375-383.

  7. Charitable giving as “synthetic family” The strongest predictor of charitable bequest planning is childlessness James, R. N., III. (2009). Health, wealth, and charitable estate planning: A longitudinal examination of testamentary charitable giving plans. Nonprofit and Voluntary Sector Quarterly, 38(6), 1026-1043.

  8. Charitable giving as “synthetic family” The U.S. has high mobility, low extended family ties, and relatively high giving. Low giving nations tend to have low mobility and high extended family ties.

  9. Charitable giving as a “social act” Charitable giving generated greater activation in reward centers (ventral striatum) in the brain when observers were present Izuma, K., Saito, D. N., & Sadato, N. (2010). Processing of the Incentive for Social Approval in the Ventral Striatum during Charitable Donation. Journal of Cognitive Neuroscience, 22 (4), 621-631.

  10. Research Philanthropy as Synthetic Family Charitable giving is a social act using the mechanisms of family bonding

  11. Build family-social relationships, not market-contract relationships Do you call? Do you write? Do you visit? Are you closer to extended family members who do these things?

  12. Research Philanthropy as Synthetic Family Charitable giving is a social act using the mechanisms of family bonding

  13. Research Family Words Not Formal Words Philanthropy as Synthetic Family Application Use family-appropriate language: Stories and simple words Avoid market/contract language

  14. where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death. Make a transfer of assets where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death. Make a gift Market Realm (exchange) I engage in transactions by formal contract Describing a CRT: Does it really make any difference? Social Realm (identity) I help people because of who I am

  15. Social/family norms encourage giving Market/contract norms do not Social Realm (identity) I help people because of who I am Market Realm (exchange) I engage in transactions by formal contract

  16. Social/family norms encourage giving Market/contract norms do not Social Realm (identity) I help people because of who I am Market Realm (exchange) I engage in transactions by formal contract Use family language: stories and simple words Avoid market language: formal contract terms

  17. where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death. Make a transfer of assets where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death. Make a gift 2014 Survey 1,059 Respondents

  18. Enter into a contract with a charity where you transfer your cash or property and in exchange Contract receive a guaranteed lifetime income from the charity Gift Make a gift and in exchange receive a guaranteed lifetime income from the charity Market Realm (exchange) I engage in transactions by formal contract Social Realm (identity) I help people because of who I am Describing a CGA: Does it really make any difference?

  19. Enter into a contract with a charity where you transfer your cash or property and in exchange receive a guaranteed lifetime income from the charity Make a gift and in exchange receive a guaranteed lifetime income from the charity 2014 Survey 1,059 Respondents

  20. Formal language lowers charitable interest 2014 Survey, 1,417 Respondents, Group F/G Will Never Be Interested 14% 23% Interested Now 36% 22% Get an immediate tax deduction and still receive income from your investments for the rest of your life by making a gift where you control the investment of the assets, but anything left over goes to charity at your death. Get an immediate tax deduction and still receive income from your investments for the rest of your life by making a gift using a “Charitable Remainder Trust” where you control the investment of the assets, but anything left over goes to charity at your death.

  21. Formal language lowers charitable interest 2014 Survey, 1,418 Respondents, Group F/G Will Never Be Interested 8% 19% Interested Now 50% 23% Receive a tax deduction and make a gift that pays you income for life Receive a tax deduction and make a gift that pays you income for life called a “Charitable Gift Annuity”

  22. Formal language lowers charitable interest 2014 Survey, 1,422 Respondents, Group F/G Will Never Be Interested 23% 30% Interested Now 26% 15% Immediately receive a tax deduction for 70% of the value of a house or land by making a charitable gift of the property, but keeping the right to use it for the rest of your life. Immediately receive a tax deduction for 70% of the value of a house or land by making a charitable gift of the property, using a “Remainder Interest Deed” but keeping the right to use it for the rest of your life.

  23. Emphasize social nature of activity 2014 Survey, 1,875 Respondents, Groups C/E/LateG+H Will Never Be Interested 9% 12% 14% Interested Now 30% 23% 12% Many people like to leave a gift to charity in their will. Are there any causes you would support in this way? Make a gift to charity in my will Make a bequest gift to charity

  24. Research Family Words Not Formal Words Philanthropy as Synthetic Family Application Use family language showing personal identity I help people because of who I am Avoid market/contract language I formally contract for my benefit

  25. Gifts from assets Gifts from current income

  26. Research Visualized Autobiography Bequest decision-making emphasizes “visualized autobiography” brain regions

  27. Bequest Giving is Different * weighted nationally representative 2006 sample from Health and Retirement Study

  28. Charitable bequest decision-making v. giving or volunteering decision-making

  29. Visualized autobiography visualization + 3rd person perspective on self lingual gyrus is part of the visual system, damage can result in losing the ability to dream precuneushas been called “the mind’s eye,” used in taking a 3rd person perspective on one’s self

  30. Visualized Autobiography In a study where older adults were shown photographs from across their life, precuneus and lingual gyrus activation occurred when they were able to vividly relive events in the photo, but not where scenes were only vaguely familiar (Gilboa, et al., 2004) In other studies, both regions simultaneously activated by mentally “traveling back in time”(Viard, et al., 2007) or recalling autobiographical personal events Denkova (2006)

  31. Visual autobiography in practice 2011 dissertation (Routley), interviewing planned bequest donors, “Indeed, when discussing which charities they had chosen to remember, there was a clear link with the life narratives of many respondents”

  32. Research Visualized Autobiography Bequest decision-making emphasizes “visualized autobiography” brain regions

  33. Application Research Life Stories Visualized Autobiography Tell life stories of donors who will live beyond their death through their bequest giving

  34. Tested different marketing messages with 11 groups, 4,560 total, 40 charities If you signed a will in the next 3 months, what is the likelihood you might leave a BEQUEST gift to _____? If you were asked in the next 3 months, what is the likelihood that you might GIVE money to _____?

  35. Other groups received messages after the current giving question to see if the bequest gap would shrink

  36. Social Norms Formal Evidence Information indicating that it is common for Americans to leave 5% or 10% to charity. Sharing survey results showing agreement with concept. Spendthrift Heirs Formal Evidence Statistics showing how rapidly heirs typically spend inheritance from published academic research

  37. Deceased bequest donor life stories With new images or pure text (no significant difference)

  38. Living bequest donor life stories E.g., “School janitor Lester Holmes died in 1992” becomes “School janitor Lester Holmes signed his will today” With new images or pure text (no significant difference)

  39. Which of the four message types worked best for which of the 40 charities?

  40. Living donor stories outperformed all other messages for 40 out of 40 charities tested

  41. Which charities saw the biggest improvement from donor stories?

  42. The bequest donor concepthelped all charities, but the story cause still mattered Largest improvement • Wildlife Conservation Society • World Wildlife Federation • Canine Companions for the Blind • Guide Dogs for the Blind • Big Brothers / Big Sisters of America The stories featured gifts benefiting wildlife, dogs, and youth and two unrepresented categories (symphony and hospital chapel)

  43. Effect of More Stories 1st 4 Stories: Janitor, pet groomer, carpenter, symphony patron 2nd 3 Stories: fisherman, coach, physician With new images or pure text (no significant difference)

  44. Although numerical ability declines with age, verbal knowledge does not Park, et al (2002) Psychology and Aging, 17(2), 299-320

  45. Age at Will Signing (by share of total charitable bequest $ transferred) Australian data from: Baker, Christopher (October, 2013) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University

  46. Over 80% of charitable bequest dollars come from decedents aged 80+

  47. Most realized charitable plans (shown in red) added within 5 years of death Total Number Total $

More Related