3 MIN READ
The Psychology Behind Why Donors Give
By: Mandy Fleming, Director of Philanthropy
As a development professional for the last 10 years, it has been fascinating to learn the psychology behind the reasons why donors choose to give of their time and treasure. To help paint the picture, I sat down for a Q&A session with Dan Prater, a member of the Nonprofit Practice at FORVIS. Dan uses his more than 20 years of experience in the nonprofit industry and education to help nonprofit and community groups be more effective in accomplishing their missions. His leadership in local, regional, and national organizations makes him well suited to guide clients in the areas of board governance, strategic planning, public relations, and outcome assessment. Prior to joining FORVIS, Dan worked and consulted with various organizations and service groups, including domestic violence and child abuse centers, international relief agencies and outreaches, as well as private and public universities.
Dan’s area of expertise is nonprofit board governance and practice. He has led several large research projects and has been published numerous times on a variety of industry-specific topics such as volunteerism, civic engagement, and economic impact.
Dan, how should a person decide what non-profit organization to donate to?
- Consider your passion. What causes are most important to you?
- Once you locate groups that work in this area, your next step is to find organizations that align with your values. In other words, what motives or behaviors guide them to address the issue or problem. The organization’s values may help distinguish them from others that have similar missions. Values should be listed on their website.
- Review their website to see if the organization explains their successes (how they are changing the outcome or moving the needle on a particular problem).
- Review the organization’s form 990. This is an IRS form that is mandatory for all registered organizations with tax-exempt status. It contains a wealth of information regarding the nonprofit’s finances and overall operations. Organizations are required by law to make it available to the public. You can check guidestar.org to find it. Or you can simply call the organization.
In your experience and based on research, what motivates a donor to give?
The number one reason most people give to nonprofit organizations is personal experience. For instance, if you or a family member has experienced a housefire or a weather disaster, you may have received assistance from the American Red Cross. Therefore, you are likely to make a donation to them. Or if you or someone close to you has experienced cancer, you may be inclined to give to the Cancer Society.People with personal experiences have a higher appreciation for how their lives were touched during difficult times, and they want to give back.
Another top reason people give is because someone they know and trust asked them to do it. The old saying “you have not because you ask not” is true.Social pressure or peer pressure can also be a strong motivator. For example, a few years ago friends challenged their friends to take the “Ice Bucket Challenge” to raise money for ALS research.
And, finally, Dan - what are the top reasons a donor chooses NOT to give to a specific non-profit organization?
Communication - lack there of or miscommunication is the most common issue for donors. Organizations must:
- Clearly communicate the importance of their work and how donors play a critical role.
- Provide clear information on what is needed (cash and in-kind gifts) and how it will be used.
- Report back to donors how their gift was used and how it improved a situation.
- Quicky and repeatedly thank donors (electronically, in-person, and at events).
When donors don’t feel appreciated, they assume their gift didn’t matter to the organization and that’s when they may chose to move on to another organization.
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To learn more about Heartspring, our values, success stories and more, please visit our website, follow us on social media, or feel free to email or call us with your questions any time!
Contact Information for Dan Prater
Dan M. Prater
Senior Managing Consultant
417-865-8701 Ext. 23142
417-522.0496 Direct Dial
Linkedin: https://www.linkedin.com/in/danprater/
Twitter: @Dan_Prater https://twitter.com/Dan_Prater
