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Lenny's Newsletter

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How GiveDirectly increased donations by over $3 million/year through experimentation

  • GiveDirectly is a nonprofit that sends cash directly to people in need, and it raised $3m more in incremental donations per year in a better donation experience experiment.
  • Donation conversion increased by 14% by adding one-click PayPal and mobile wallet checkout options.
  • Changing the email opt-in checkbox copy doubled the subscription rate, which drove an incremental $400,000 a year.
  • Having the default donation frequency set to monthly instead of one-time increased the yearly donation value by $500,000.
  • Changing the checkbox for donors to cover transaction fees to unchecked by default generated an additional $200,000 a year.
  • A new homepage design with an embedded donation form raised an additional $700,000 a year in donations.
  • The team's focus was on the North Star metric, which is total dollars raised and which helped recognize where to accept a decrease in other submetric.
  • Donations are sent via mobile money technology, making it more scalable than other poverty solutions.
  • GiveDirectly is building this evidence base by running the world's largest UBI study, among other research.
  • Donations are being doubled on December 3 through an anonymous donor matching pool while funds last.

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