Why Do People Donate? How Donor Psychology improves your fundraising



Why Do People Donate? How Donor Psychology improves your fundraising

Read time: 4 Minutes

Can you remember what you were thinking or feeling the last time you donated to a cause?

I’d wager most of us don’t think about it much in the moment.

But under the surface, motivations and drivers are inspiring these acts of altruism.

As changemakers and fundraisers, if we can better understand these motivations, we can inspire more giving. It’s just psychology!

In today’s issue of Changemaker Mondays ☀️ ☕ 🌍, let’s examine what the research says about why people give – and how understanding that Why can improve How we fundraise.

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You might be surprised to learn that a majority of charitable donations - 85%, according to recent research - occurs because somebody asked.

“But Amber,” you’re probably thinking, “If it’s as simple as that, why don’t we get more donations? We ask all the time!”

The thing is, ‘being asked’ doesn’t tell us the other details – like asked by whom, when, or in what situation.

That’s where other possible donor motivations - across a spectrum of altruistic to self-interested - come into play.
Numerous studies have examined donor motivation – here are some of my top takeaways from several of them (combined with my personal fundraising observations, of course!):

7 Reasons People Donate
(+ Fundraising Tips for Each)

1. They trust you

People donate when people ask them to – but not just any people. Specifically, they need to be asked by people they know and trust; friends, authority figures or voices with a high level of credibility, etc.

That’s because people want to know their donations will be used meaningfully. If you can trust the person or people in charge of utilizing those donations, by extension you’ll believe the donations are in good hands.

To inspire trust, audit your communications. Are you transparently sharing the impacts of your nonprofit’s work and how donations are spent? Additionally, make sure your leaders engage with the community regularly, building relationships.

2. Social Proof

People want to get into the house where the party is.

If others appear to be joyfully contributing to your cause, that signals to others that there’s something about that action that’s worthwhile – and that they should get in on it!

That, in essence, is how social proof works.
But it’s a little nuanced.

Fascinatingly, if you ask a group of 100 people standing in the same room together to donate, individuals might be less likely to. They may assume someone else in the room will take care of it and they won’t have to (this is called the bystander effect).

So your goal is to showcase situations where people are in on supporting the cause, but not while hanging out in the same room.

Here’s how to tap into the power of social proof in your fundraising: Showcase testimonials, social media shout outs, or your donor community. You might consider phrases like “Join hundreds of others in the work to improve education.” (focusing on the outcomes of the donation in your phrasing.)

3. Reciprocity

If a donor or someone they know has personally benefited from an organization’s work, they may feel especially inclined to contribute out of a sense of reciprocity.

We see this especially in animal rescue organizations. If you adopted your special furry friend from a particular organization, you’re more likely to share that organization’s work with your friends, volunteer, or donate.

Don’t overlook program participants as potential donors. Obviously, depending on your nonprofit’s mission, asking clients to donate may not be appropriate or feasible. But where it makes sense, don’t be afraid to make the opportunity visible, because few people know the impact your organization makes more than those whose lives have been impacted!

4. Sense of Belonging

This donor motivation sits adjacent to social proof, but it’s a little different.

In this case, donors might give because they want to feel like part of a community. This tends to work really well for nonprofits that have strong networks, member communities, or social volunteer or supporter groups.

For fundraising, consider: How can we create a sense of community among our followers? Our current volunteers or donors? Empowering them to interact with each other is key. Might you host social events?

5. Identity Alignment

Everyone has an image of themselves shaped by their values and beliefs. This is their identity. Our self-proclaimed identity can shape what we buy, eat, and even how we vote.

James Clear, author of Atomic Habits, underscores the importance of identity in how it impacts the actions we take (and habits we stick to).

For example, we might donate because we believe (and want others to believe) we are the type of person who contributes to good causes. Donating then becomes a reinforcing act that proves we are, in fact, that person.

How does this apply to fundraising? Understanding the power of identity can help us articulate the “user profile” of the type of donor who might be most likely to donate to our nonprofit. What do they believe? What values do they hold? Create a donor persona, think about where those people hang out, and boom - that’s where you target your outreach.

6. Altruism and Duty

I consider this connected to identity, because for some, donating may be a moral obligation or expression of their deepest values. The mantra of these donors could be: “Helping those who need help is just the right thing to do.”

When it comes to fundraising, consider what values your nonprofit operates by, and how you can make sure these values are evident in your messaging. For example, emphasizing fairness and justice might attract donors for whom those values are very important.

7. It feels good

The fact is: Helping others feels good!
(And usually, it bolsters your reputation)

Psychology Today’s take on this calls this motivation “Egoism”, but that term feels a little harsh to me. Personally, I’m not bothered that helping others happens to feel good (as long as we are committed to acting with care and intention).

Showing donors simple gratitude or recognition (if you have their permission) is an easy way to inspire future giving.

Now that we’ve finished this “crash course” in donor psychology, what are some of your ideas for bolstering fundraising?

Resource Roundup

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I'm Amber, writer of the Changemaker Mondays newsletter! I'm a nonprofit founder, speaker, and social entrepreneur on a mission to equip you with the tools you need to create positive change where ever you live -- whether you're starting a nonprofit or socially-conscious business, looking for a social impact job, or leading a volunteer project in your city. Don't hesitate to connect (socials below), or reply to this email if you ever have any feedback on how we can make Changemaker Mondays the best newsletter for supporting changemakers in the world!

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Amber Melanie Smith

I am on a mission to equip nonprofit and social impact changemakers with the tools and resources to grow their impacts. Join me and over 65,000 changemakers on my social impact-focused YouTube channel at https://www.youtube.com/ambermelaniesmith!

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