Public Affordable Housing and Community Training (PAHCT) Engagement Study High-Level Findings Report

Can a for-profit philanthropy work? This study dives into the mental models of potential contributors to the for-profit philanthropy organization, PAHCT. The primary goal is to answer the question: Will people be open to donating money to a company that is not a non-profit?

Methodology 10 people between the ages of 25 and 65 who had previously donated to a charity were asked a series of questions about their giving habits Participants were asked whether they would consider giving to a philanthropic organization that is not a non-profit They were then asked to explore pahct.org and asked whether they would be likely to donate

Who Participated 64 Estimated 2013 Charitable Giving $250 $1,000 $2,500 $100 $500 Goodwill Red Cross Feed the Children Political Campaign NPR Habitat for Humanity Personal Religious Organization

Mental Models (before viewing pahct.org) 7 out of 10 would only give to a non-profit organization 3 out of 10 believe a for-profit philanthropy is probably a scam 8 out of 10 think social innovation is a good reason to donate to a cause Those who donated over $500 per year were the least likely to want to donate to a for- profit philanthropy

What They Said “It’s hard to imagine. I mean, am I funding some guy’s lifestyle and basically investing in his company with no return? That doesn’t make sense.” “I think that could work. I like to support companies that have a positive goal, like helping people.” “That goes against the point of a non-profit. I wouldn’t donate money to a company and get nothing back. It sounds like a scam. Who would fall for that?” “I do shop at stores that give back, and I pick them on purpose. Or like Tom’s shoes. I buy those because they put shoes on children. So I guess giving money to a company that’s doing good is the same.” “I’m not sure. I think it would depend on what the good thing is. Like, who benefits. That would matter in whether I would donate.”

After Exploring pahct.org 8 out of 10 thought the company has a good overall goal 8 out of 10 thought the web site was engaging and easy to understand 6 out of 10 thought they would donate to PAHCT, even though it is a for-profit company Women were more likely than men to donate to PAHCT

Key Impressions “I think I get why they aren’t a non- profit. But I would still be a little hesitant to donate without talking to someone there first. Maybe if I could call them. So I know it’s real.” “Really nice imagery and it tells a compelling story. I really get why this is important. And I had never thought about people in my own neighborhood who might lose their home and then that would have an effect on my property values.” “As someone in finance I’m kind of offended that they’re pinning the entire financial crisis on me. People made their choices.” “It sounds like Habitat for Humanity, and I give to them already. I’m not really sure why this is better.” “They did a good job of tugging at the heart strings, but I’m still not sure. I like that they have a blog. I usually read blogs for things if I’m trying to figure out what they’re about.”

Recommendations Be up-front about PAHCT’s for-profit status but be sure to highlight why. Participants wanted to understand the reasoning behind this decision. Show proven results in the form of success stories to build trust and credibility. Target donors in the $500 and under range. Those who routinely gave more were unlikely to give to PAHCT. Move the contact information to the header as well as on the Contact landing page. Participants felt that companies who “hide” their phone numbers have something else to hide.

Don’t Change It Things that resonated with participants and should not be changed: Keep up PAHCT’s social presence, including the blog Continue using compelling imagery with faces, rather than structures Keep the FAQs; participants read them thoroughly Keep the founders’ photos. Participants felt that it humanized the company and made it seem “more legitimate.”

Summary Most people will not be initially open to a for-profit philanthropy, but many will come around given the right information and sense of confidence in the organization. Success is most likely to be had in lower donation levels, and among women. Transparency is key.

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