We feel more negative about a loss — perhaps 2x as much — of something than we feel positive when we make the same gain. So we avoid risk that might lead to loss.
We place greater value on objects we own over those we don’t, especially if the object has emotional value.
This effect is also called Ownership Bias. We have an irrational sense of the value of something we own or are given. Fundraisers can help individuals to feel ownership of, for example, an object, membership, or even a cause. This is linked to the fear of Loss/Risk Aversion heuristic.
When regular givers indicated they wanted to cancel, call handlers at UNICEF Finland, would re-assure them they could arrange it. Before cancellation, however, they asked ‘for our research’, if the donor could remember why they had originally joined. The handler was trying to recreate the original emotion. On this prompt 42% of individuals decided to continue with a regular gift, albeit a reduced amount.
The child adoption mechanic creates a sense of ‘ownership’. Action Aid reinforces this: “As their only sponsor, you’ll have a unique relationship with your sponsored child. You’ll receive photos, handwritten messages, and regular updates.”
Like football fans, supporters like physical material that signals cause ownership. Major donors, recruited for the NSPCC Full Stop Campaign, were given a beautifully designed Case for Support in the style of a coffee table book. This became a treasured memento.
Having something named after you is a powerful way to help supporters identify with a project. Royal Botanic Gardens Edinburgh encourages donors to meet the cost of a named plant or specific ‘garden’ furniture. A plaque acknowledging their gift is close by.
charity: water runs personalised campaigns where donors can fund an entire water project—often a specific well or water system for a village.
Some donors even receive maps or digital plaques marking their contribution.
This symbolic ownership triggers the endowment effect: once donors feel a project is theirs, they’re more invested emotionally and more likely to give again, share it, or stay involved.
Twin My Toilet do the same kind if thing by encouraging you to twin your toilet with another one in a less developed nation.
The Endowment Effect is a behavioural science principle that says people place a higher value on things simply because they own them.
Once we feel ownership — even symbolic or temporary — we’re more emotionally attached and less willing to give it up.
In a famous study (Kahneman, Knetsch, Thaler, 1990) people were randomly given a mug. Later, they were asked:
Same mug, different perceived value. Ownership inflated its worth even though it had originally been a gift. And it wasn’t an especially nice mug.
If you can make donors feel a sense of ownership — over an outcome, a donation, a cause — they’re more likely to give and stay loyal.
“This is your theatre seat… your tree… your sponsored child.”
Give people a stake in something concrete.
Rooms, projects, or funds named after donors = literal endowment effect.
“We’ve reserved your spot at the gala…” or “Your name is on this list. Just confirm with your gift.”
Suggest temporary ownership that needs follow-through.
“You have £25 worth of impact waiting to be unlocked.”
Use copy that frames action as reclaiming or affirming ownership
Physical items (badges, pins, certificates) subtly increase attachment to the cause.
