Exploring the phenomenon of ‘inverse giving’

Many charities are keen to avoid criticism and negative headlines, which they understandably believe can be a distraction from their work delivering services and raising funds. But increasingly evidence shows negative headlines of charities can prove beneficial to fundraisers.

 

Instead of closing their wallets to charities, such criticism can make charity supporters even keener to back good causes, to help protect them from critics, bolster their finances in troubled times and to show that they still have a following.

 

This donor reaction to criticism is known as “inverse giving”. Here we look at this phenomenon and explore a real-world example involving the Royal National Lifeboat Institution (RNLI), where criticism of the charity prompted a flurry of donations and support from the public.

 

 

What is inverse giving?

 

Inverse giving is where supporters donate because of negative headlines they are seeing about a cause, according to online fundraising platform Enthuse, which highlighted the issue in the UK in its Donor Pulse report, published in summer 2023.

 

It can also refer to giving as a reaction to wider negative issues about the charity sector, such as an economic downturn hurting their finances. This theory was highlighted earlier in 2023 in the US, by fundraising expert Tim Sarrantonio.

 

He told The Chronicle of Philanthropy that “in times of economic recession and uncertainty, there is almost an inverse reaction by donors to be more generous in the beginning intensity of when you might see prices going up”.

 

 

What evidence is there of the phenomenon?

 

Enthuse’s Donor Pulse report found that young people are among the most likely supporters to back good causes that are criticised by the media and on social media.

 

It found that more than a quarter (27%) of the public say they are motivated to give to a good cause in reaction to criticism made against it.

 

This proportion rises to 48% among generation Z. This tech-savvy demographic’s group of teenagers and donors in their 20s are also the most likely to be concerned about global wider issues around the environment, poverty, and crises such as COVID-19.

 

Also 28% of donors say they give to “show political solidarity with a cause or for a set of ideals,” says Enthuse. “Traditionally, the thinking has been that getting positive headlines behind a cause has been a great driver for donations.”

 

While there is truth in this theory, as more than a quarter of people give due to positive coverage, “it seems that donations can just as easily be inspired by criticism”, adds the online fundraising platform.

 

 

Case Study: RNLI

 

Among the most high-profile cases of a charity garnering further support following criticism has involved the RNLI. In 2021 it said it was “overwhelmed” by support after its life saving operations in the English Channel were criticised by among others Nigel Farage. The former UKIP leader had accused the charity of being “a taxi service for illegal immigration”.

 

Among the most high-profile inverse giving fundraising for the charity following Farage’s criticism was an online crowd funding campaign launched by charity supporter Simon Harris.

 

Harris initially sought to raise funds to buy a hovercraft for English Channel rescues, called ‘The Flying Farage’. But due to the impracticalities of using this form of vessel, which is usually used in mud flat areas, the money is being used to fund an in-shore vessel.

 

The campaign continues to collect money, with more than £235,000 raised as of July this year for the RNLI from 14,700 donations.

 

Among those to give to Harris’ appeal is David Fishpool, who gave £20 saying “the RNLI are about saving peoples’ lives – no matter who those people may be- that is the most laudable cause that anyone could support”.

 

Meanwhile, donor Paul Phillips, who donated £10, says: “I don’t want to be associated with human beings drowning in La Manche because of politicians trying to gain votes by using hate against the vulnerable.

 

“When a thought of hate comes, replace it with a stronger thought of peace (and love for one’s fellow humankind).”

 

“For the charity sector, there may be some truth to PT Barnum’s famous quote about there being ‘no such thing as bad publicity’,” adds Enthuse. “This is particularly true in the current environment of polarised opinions on social media and presents a potential opportunity for charities to create some bold and brave campaigns around their stances on issues.”