Key Characteristics of Donors Who Give Less Than $1,000

Most of the research on donor behavior focuses on the behavior of major gift donors. Because most not-for-profit organizations want to solicit their entire donor pyramid (low-end to high-end), it is important to understand the key donor trends of both sets of donors.

Key characteristics of major donors are:

• Committed to the mission of the organization
• Long-term donor loyalty
• More interested in restricted giving than unrestricted (Case Sensitive)
• Need regular personal cultivation
• Motivated by tax considerations when making large gifts
• Want to know who else is giving
• Motivated by donor recognition

Key characteristics of donors of less than $1,000 are:

• Committed to the mission of the organization
• Comfortable with unrestricted giving
• Influenced by other giving properties
• Low interest in charitable deduction
• Motivated by donor recognition

While there are some important differences in these donor levels, there is one thing that all donors have in common: they want to receive a “Thank you” that is sincere, timely, and tells how their money will be used. Research indicates that many organizations fail when it comes to thanking their donors. Saying thank you should be the easy part for NPOs!

We all understand that the “Thank you” can serve as the cultivation for the next gift; therefore, important.

With over one million NPOs in the USA, the competition for the philanthropic dollar is keener than ever. Most donors of less than $1,000 understand that their giving will only have impact if combined with many other small gifts.

Most low-end donors distribute their giving annually among 7-10 NPOs, largely based on their passion for the case for support as well as receiving actual solicitation (direct mail or phoning) from NPOs. Most low-end donors do not send in unsolicited gifts.

Most gifts are still solicited and given via direct mail or telephone as compared to on-line donations. Both direct mail and telephone solicitation continue to work for most NPOs.

Key reasons why donors say “No” when solicited:

• Financial Reasons
• Problems with service or organization
• Other giving priorities
• Not interested in the Mission/Case for support

It is important to remember that donors don’t have the opportunity to say, “Yes” or “No” unless they are solicited. Keep asking. The “4 Right Rule” still works: the right person, asking for the right case, for the right amount, at the right time.

*As Chairman of IDC, Diane Carlson has a history in the fund-raising arena that spans more than three decades. Diane served as the first female volunteer chair of the American Association of Fund Raising Counsel (AAFRC) and continues to be one of the most well respected fund-raising professionals in the nation. She can be reached at dcarlson@goidc.com.

Source: OnPhilanthropy