# What's in it for me? Fundraising and the value equation

- Link: https://fundraising.co.uk/2012/04/24/what039s-it-me-fundraising-and-value-equation/
- Published: 2012-04-24T19:59:16+01:00
- Author: Kevin Baughen

**Sounds counter-intuitive doesn’t it?  Surely our selfless motivations, if  we 
really believe that “we are all in it together” should prompt us to ask “where can
I help?”.**

But we’re not all altruistic to the point of self-sacrifice because increasingly
we can’t afford to be. Perhaps the most realistic expectation is to ask “what’s 
in it for us?” where “us” means our nearest and dearest as well as our broader community
and associations.

Why am I talking about this philosophical stuff, you may ask…? Because if we as 
organisations want anything from other individuals or organisations, I believe we
need to understand the distinction between the above positions very clearly.  

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There is a tried and tested [marketing concept](http://en.wikipedia.org/wiki/Customer_relationship_management)
called the value equation which suggests that in order to elicit the action we want
from target audiences, we have to offer something commensurate and meaningful to
them in order for them to perceive value in doing it.

![Luv Shoes - the value equation is complete!](https://wfay6x.infiniteuploads.cloud/
2026/07/Luv-shoes.jpg?w=300 "Luv shoes")

We think about this almost on a subconscious level; £100 for a fabulous pair of 
shoes can either be perceived as “they are so totally worth it and  ‘m going to 
look gorgeous…” or “someone is having a laugh!”.  In both cases the individual has
weighed up both sides of the value equation and made a judgement which results in
action or inaction.  The buyer thinks there are benefits to them equal to or exceeding
£100 and so acts accordingly.

To the two organisations that approached me during the last week asking for my time
and contributions to their business model and to promote their programmes, for free,
where is the value in your value equation (and I don’t just mean money)?

Fundraisers get this concept – it underpins any robust case for support – “if you
give us this money, we will do this with it, and we will recognise your contribution
and keep you involved, if you want to be, over time so you can see for yourself 
what a difference your donation makes…” Sales people get it; it’s how needs-based
selling works.

So why do organisations still ask for things from people without designing the value
equation which will give them the greatest chance of success with their audience?&
nbsp;I’ve experienced three main reasons (I’m sure there are more):

 * Some folks spend a lot of time looking inwardly in their organisations. Being
   too close to the great work we do makes us believe it’s awesome and of course
   everyone else will love it too.
 * Some communicators think that the value is implicit and do not specifically draw
   it out in their messages; that their readers or viewers are smart enough to spot
   it themselves. Yes they probably are but in 2012 they probably don’t have the
   time to!
 * One value equation fits all audiences right? Wrong. I’m advocating targeting 
   based on more than socio-demographics and recency, frequency and value. We should
   try and understand what our audiences want from us in exchange for their action,
   and then deliver it.

I’m guessing that anyone reading this blog isn’t doing these things but if you are,
I recommend taking stock and thinking about what value your target audiences want
from you in return for doing what you need them to do. Then build the resultant 
value equation explicitly into your messages.

 * **[National Trust hires GOOD Agency to boost awareness](https://fundraising.co.uk/2015/12/10/national-trust-appoints-good-agency-awareness-booster/)**(
   10 December 2015)
 * **[2020 driving charities across board to reassess fundraising strategies, survey shows](https://fundraising.co.uk/2020/12/14/2020-driving-charities-across-board-reassess-fundraising-strategies-survey-shows/)**(
   14 December 2020)
 * **[Diversify or Die](https://fundraising.co.uk/2009/09/23/diversify-or-die/)**(
   23 September 2009)