{"id":4165,"date":"2013-04-22T01:33:00","date_gmt":"2013-04-22T01:33:00","guid":{"rendered":"https:\/\/oafdn.ca\/?p=4165"},"modified":"2022-02-12T01:35:17","modified_gmt":"2022-02-12T01:35:17","slug":"characterizing-donors-and-motivations-for-giving","status":"publish","type":"post","link":"https:\/\/oafdn.ca\/fr\/characterizing-donors-and-motivations-for-giving\/","title":{"rendered":"Characterizing Donors and Motivations for Giving"},"content":{"rendered":"
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\"a<\/p>

I recently read a report prepared by a group\u00a0Hope Consulting \u2013 \u201cMoney for Good II\u201d<\/strong><\/span>\u00a0which researched factors motivating donor preferences for supporting financially a charitable organization. The motivation for the research was to gain a deeper understanding of the \u2018voice of the customer\u2019 for charitable giving \u2013 what drives an individual, or a granting organization to decide to financially support an organization. What type of information is key to the decision making process?<\/span><\/p>

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It is an interesting read \u2013 you can delve into detailed research findings, or scroll through the summary findings. I liked the way the report characterized donors into six segments:<\/span><\/p>

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\u00a2\u00a0Repayer\u00a0<\/em><\/strong>:<\/p><\/td>

\u201c I give to my alma mater, I support organizations that have had an impact on me or on a loved one\u201d\u00a0\u00a023% of donors<\/strong><\/em><\/span><\/td><\/tr>
\u00a2\u00a0Casual Giver<\/em><\/strong>\u00a0:<\/strong><\/td>

\u201c I give to well-known nonprofits because it isn\u2019t very complicated\u201d\u00a0\u00a018% of donors<\/strong><\/em><\/span><\/p><\/td><\/tr>

\u00a2\u00a0High Impact<\/em><\/strong>\u00a0\u00a0:<\/strong><\/td>

\u201c I support causes that seem overlooked, I give to nonprofits I feel are doing the most good\u201d\u00a016% of donors<\/strong><\/span><\/em><\/p><\/td><\/tr>

\u00a2\u00a0Faith Based<\/em><\/strong>:<\/td>\u201c We give to our church, we only give to organizations that fit with our religious beliefs\u201d\u00a0\u00a016% of donors<\/strong><\/span><\/em><\/td><\/tr>
\u00a2\u00a0See the Difference<\/em><\/strong>\u00a0:<\/strong><\/td>

\u201cI think it is important to support local charities, I\u00a0 give \u00a0to small organizations where I feel I can make a difference\u201d\u00a013% of donors<\/strong><\/em><\/span><\/p><\/td><\/tr>

\u00a2\u00a0Personal Ties<\/em><\/strong>:<\/strong><\/td>

\u201c I give where I am familiar with the people who run the \u00a0organization\u201d\u00a014% of donors<\/strong><\/em><\/span><\/p><\/td><\/tr><\/tbody><\/table>

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\u00a0Key Drivers<\/strong><\/span><\/p>

Overall and not a surprise, a key driver for a donation is \u2018caring deeply about the cause\u2019 \u2013 35% of donors. Generally donors are not highly motivated by maximizing social impact. Few donors ever research a charity before making an initial donation. When research is undertaken about a not for profit, it is more to confirm the \u2018acceptability\u2019 of the organization, and not on finding organizations that are \u2018best in class\u2019. Individuals and granting organizations begin to differ in behavior in some respects \u2013 individuals want to support organizations which make good use of their dollars. They care about legitimacy, respect and where the funds are going. Granting organizations differ in that they seek to maximize impact and find the most \u2018effective\u2019 organizations.\u00a0 A high premium is placed on effectiveness and impact of their grant. Granting organizations research almost every grant and have a high need for comprehensive information about the organization \u2013 they are \u2018information hungry\u2019. Any arts organization applying for grants know this well\u2026.<\/span><\/p>

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Loyalty<\/strong><\/span><\/p>

All groups tend to be loyal with their giving \u2013 repeated donations to organizations they develop a relationship with.\u00a0 All donors would like financial information from the organization they support, followed by information on the effectiveness of programs. It appears that information describing effectiveness of programs represents an \u2018unmet\u2019 need, or opportunity. This is an opportunity for not-for-profit to enhance their reporting in order to attract additional or increased support. An interesting comment was made on the role of advisors \u2013 the report suggests that advisors tend\u00a0not<\/em><\/strong>\u00a0to advise clients on where to donate. When you consider that most financial advisors want to be involved in every aspect of a client\u2019s financial affairs, it is interesting that this is an area where they are less involved.<\/span><\/p>

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The implications of the research suggest that not for profit organizations can be more responsive to donors by:<\/span><\/p>