What Makes People Donate?

Nonprofits play a vital role in supporting and uplifting communities, and donations are the lifeblood of these efforts. In a world where donors have many causes to choose from, it’s essential to understand what motivates people to give. What drives donors, and what strategies truly inspire generosity? A recent review of experimental studies provides valuable insights into these questions, offering both nonprofits and individual donors guidance on how to make a real impact.

The Science of Giving: Key Insights from Research

A comprehensive analysis of 187 experimental studies published between 2007 and 2019 explored a range of topics related to charitable giving. The findings fall into two key areas: what motivates donors and which fundraising techniques truly work.

Donor Motivations

• The Warm Glow Effect: Giving is not always about pure altruism. Often, people donate because it makes them feel good. The "warm glow" effect shows that the act of giving can boost personal happiness, making it a powerful motivator.
• Social Pressure and Reputation: People are more likely to give if they know others are contributing or if they feel some social pressure to do so. Simply sharing information about past donations can inspire others to join in, creating a ripple effect of generosity.
• The Power of Efficacy: Donors want to feel like their contributions are making a tangible difference. Although studies show varying results on the direct impact of donations, most agree that people are more inclined to give if they believe their donation will lead to real, measurable change.

Effective Fundraising Techniques (with Ethical Considerations)

• The Image Question: While powerful images—like those of children in need—can increase donations in the short term, some researchers warn against using emotional appeals as a long-term strategy. Authenticity and long-term engagement are key.
• Suggested Donation Amounts: Offering suggested donation amounts can help guide potential donors, but finding the right balance is crucial. Too high or too low can turn people off, so offering a range that feels comfortable for your audience is essential.
• Auctions and Lotteries: These fundraising methods can be highly effective because people enjoy the added excitement of participating in a game, all while supporting a good cause.

Key Takeaways for Nonprofits

• Tailor Your Message: Understand the specific motivations of your audience and speak to those needs and values.
• Be Transparent: Clearly explain how donations will be used, and make sure donors understand the impact of their contribution.
• Focus on Impact: Show donors the real difference their generosity makes. People want to know their gifts are making a meaningful change.
• Go Beyond Emotion: While emotional appeals can be compelling, providing donors with a deeper understanding of the cause will foster lasting connections and encourage ongoing support.

Conclusion

By understanding the science behind giving, nonprofits can create more effective and ethical fundraising strategies. The key to sustainable fundraising success is building genuine relationships with donors, emphasizing transparency, and focusing on the long-term impact. When donors feel informed, valued, and connected to a cause, they are more likely to become engaged supporters for years to come.

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Reference:

Bhati, A., & Hansen, R. K. (2020). A literature review of experimental studies in fundraising. Journal of Behavioral Public Administration, 3(1), 1-19. DOI: 10.30636/jbpa.31.129