Frustrated With Your Fundraising? For Better Results, Flip the Script

Fundraising is a perennial challenge for every nonprofit. And while major gifts often dominate headlines, everyday givers are the top source of donations in America. But reaching them effectively—and efficiently—takes nuance and insight.

Our team studies why people donate to causes they care about and how to engage them effectively. In our most recent national survey, 76 percent of Americans said they wanted to give more time and money to nonprofits. That’s a major opportunity for organizations that take the time to learn what motivates potential donors and frame fundraising appeals accordingly.

However, messaging often centers on the needs of the institution—not the interests of individuals who might donate. For example, “Your gift supports key institutional initiatives.”

Successful appeals flip the script and put the motivation of the donors front and center. For example, “Your gift can help a student make the most of the experiences that made your own education so transformative.”

Organizations that take the time to understand their audiences and appeal to their interests are seeing revenues spike—raising more from current donors, reengaging lapsed contributors, and attracting new prospects.

Understanding donors leads to breakthroughs

A major university wanted to understand what might motivate more alumni to donate. Fundraising leaders suspected that campus controversies and other turmoil around higher education had left alumni frustrated and disinclined to give. Our research on alumni motivations and mindsets showed something else:

Most alumni felt a strong connection to the institution and wanted to feel part of the community that had meant so much to them. But fundraising events and appeals often centered on major donors, leaving everyday alumni out of the picture. Many also wanted to help current students thrive, but few understood how their gifts would be used.

In a messaging test, one group of donors received an email with a generic, year-end appeal:

Your gift today inspires confidence in tomorrow. We hope you’ll show your support by December 31.

Another group received a message reflecting the new insights:

Tens of thousands of alumni, parents, and friends across generations come together to give every year. Their collective generosity helps sustain everything that defines our college experience.

Appeals reframed to highlight smaller gifts and how they supported students delivered dramatic results: Donations rose by 45 percent, the average gift size increased by 50 percent, and engagement by lapsed donors went up more than 30 percent.

Three principles to strengthen any fundraising effort:

Think of donors as people, not demographics. Messaging strategies often start with donor characteristics like age, income, and education level. But demographics only tell part of the story. What matters more is understanding why people give. Our audience research unearths a surprising variety of motivations for giving money to good causes: from “helping others” to “standing up for what I believe in” to “being a person others look up to.” Successful appeals speak to heartfelt desires like these.

Put your audience in the picture. People are more likely to act when they see others like them taking action. For small donors, examples of peers giving what they can are more motivating than stories about major donors and massive gifts. In fact, those stories can backfire by sending an unintended message that donations from everyday givers aren’t welcome or needed. When potential supporters see themselves in the story, they’re more likely to step up.

Tailor appeals to different motivations. There’s no one-size-fits-all approach to fundraising. Some donors want to make a difference in people’s lives. Others want to learn something new. Others want to exercise leadership. Tailoring appeals to reflect those different motivations can drive significantly higher returns.

A university that tailored appeals to its alumni base saw eye-popping returns—nearly doubling the donation rate among alumni who felt least connected to the institution and increasing it by 1,100% among the most connected alumni.

Organizations large and small can use this kind of insight to engage donors in new ways and attract new dollars. Understanding your audience can help you raise more now and build a smart strategy to strengthen year-end fundraising and beyond.

If you’re interested in learning how to develop research-based fundraising strategies, we’d love to talk. Email us at info@hattaway.com.