The Problem with Totes and T-Shirts: Why Freebies Can Undermine Fundraising

The Problem with Totes and T-Shirts: Why Freebies Can Undermine Fundraising

My grandfather wasn’t a big donor. He only gave to a handful of causes in his lifetime. But there was one organization that always stood out: St. Jude Children’s Research Hospital. He gave faithfully – moved by the emotional weight of their television commercials. The stories got him every time.

But even though he was already giving, they kept sending him address labels. Over and over again.

At the time, I didn’t get it. Why send him stuff he didn’t ask for when he was already clearly connected?

Years later, working in fundraising myself, I learned what was going on. Those labels weren’t a thank-you. They were part of the ask. A fundraising tactic. A subtle nudge rooted in the psychology of reciprocity: we gave you something, now give something back.

And while it might work once, that kind of giving rarely sticks.

The truth is, these built-in freebies – address labels, calendars, stickers – don’t deepen connection. They dilute it. They train donors to expect something with every letter, and more importantly, they shift the focus away from the mission.
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I still wonder: would my grandfather have kept giving without the commercials? Maybe not. But I know this for sure – it wasn’t the address labels that made him care.

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When Fundraising Starts to Feel Like a Loyalty Program

We’ve all seen it – and some of us have inherited files full of it:

• Calendars that take all year to design
• Sheets upon sheets of address labels
• Stickers that end up in the recycling bin

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These “free” items are anything but free. They come at a cost – not just to your budget and your time, but to your donor relationships.

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Why These Kinds of Premiums Can BackfirE

Let’s get practical. Including giveaways in your appeals may seem harmless, but it creates three major problems:

1. It sets the wrong tone.
You’re not building connection – you’re mimicking a subscription box. That’s not what we’re here to do.

2. It costs more than you think.
Printing, shipping, design, fulfillment – it adds up fast. Those funds could go straight to your mission.

3. It attracts short-term, low-retention donors.
This is the biggest problem. Donors who give because of a trinket are less likely to renew, upgrade, or become champions for your cause. You want committed supporters, not one-time transactions.

And There’s a Legal Catch, Too
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Let’s talk taxes. When you include a premium with your appeal, you risk turning that gift into a quid pro quo contribution – where only part of the donor’s gift is tax-deductible because they received something in return. To avoid that, the item has to be of “insubstantial value” – meaning so cheap it’s practically worthless. And if the gift is that insignificant, why bother sending it at all? You’re adding printing, packaging, and postage costs for something that can’t carry real meaning or message weight. It’s a logistical headache with no lasting return.

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What Donors Actually WanT

Here’s what’s wild: Most donors don’t even want the stuff. They want to be moved. They want to know their gift means something.

That’s where Near, Dear, and Clear comes in:

• Near: They feel close to the cause.
• Dear: The mission matches their values.
• Clear: They understand what their gift will do.

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No label sheet in the world can deliver that. But a compelling story can.

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When Thoughtful Tokens Do Make Sense

This isn’t a full-on war against every branded item. There’s a time and place – but intention matters.

• Give tokens in stewardship, not acquisition.
• Let them be surprises, not bait.
• Make sure they reflect your mission, not just your logo.

A bookmark made by a student in your afterschool program? That’s beautiful.
A bulk-ordered mug with your fiscal year slogan? Probably unnecessary.
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Would you give your best friend a water bottle to say thank you?
Or would you write them a heartfelt note of thanks?

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So What Should You Do?

If you’re stuck in a cycle of sending “stuff” or trying to break the premium habit, here’s where to begin:

1. Lead with stories.
Make your appeal emotionally rich and mission-focused. Don’t let a keychain carry the message.

2. Map the full donor journey.
Gifts shouldn't unlock access to your best content. Welcome everyone into the story, not just your VIPs.
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3. Test it.
Try a premium-free version of your next appeal and track the results. You might find your message carries more weight on its own. And don’t forget to track retention of those new donors acquired (with premiums and without) in the next year of giving.

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Fundraising That Feels Better (and Works Better)

The truth is, you don’t need gimmicks to raise money. When you lead with purpose, your donors feel it. And they’ll stick around.
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Mission-centered messaging doesn’t just build trust – it builds staying power.

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Ready to ditch the swag and write stronger appeals that actually retain donors?

The Smart Start Fundraising System will show you how. I break down what motivates giving without resorting to trinkets and help you build a complete plan grounded in what matters.

[→ Get on the waitlist now or check out the course here.]
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Cheers!

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