If charities got more sophisticated about how they treated their donors and understood their motivations for giving, organizations could see $22 billion more in donations per year, according to a new report by Camber Collective, a strategic-consulting group that works with nonprofits.
The survey of 3,000 Americans with household incomes of at least $80,000 also estimated that donors would likely shift another $25 billion to charities other than the ones currently supported if nonprofits better met donors’ needs.
Here are five types of donors the researchers identified and lessons in appealing to these people more effectively.
CONTENTED BENEFACTORS
Most likely to be men, age 35 or older.
Percent of all donors: 20%
Traits: They value hard work, are more conservative and religious than other donors, and are more likely than donors over all to give more than 2% of household income (58% do so, compared with 23% of all donors).
Potential giving per year: $3 billion
Appeals that work: Talk to them through their financial advisers about building a legacy.
Appeals that don’t: Guilt. Only 2% feel guilty for not giving more, compared with 25% of all donors.
BUSY IDEALISTS
Most likely to be young women (nearly 1 in 3 are millennials).
Traits: They are religious, likely to volunteer, and most likely of all donors to say they intend to give more than they have in the past (66%, compared with 32% of donors over all) and to research the charities they support (70%, compared with 53% of all donors).
Percent of all donors: 15%
Potential giving per year: $7 billion
Appeals that work: Giving circles or other efficient, personalized channels for giving. They express more support for international causes than donors over all.
Appeals that don’t: Too many choices — both in causes to support and in the ways to support them. They are most likely of all donors to feel overwhelmed by demands from charities and to be stretched for time.
CAUTIOUS STRIVERS
Most likely to be young (34% are millennials).
Traits: They come from modest backgrounds, are likely to be single, and are skittish about spending. They believe strongly in philanthropy (71%, compared with 58% of all donors) but give modestly and feel guilty about not giving more.
Percent of all donors: 14%
Potential giving per year: $4 billion
Appeals that work: Solicitations made by people they know personally. Crowdfunding. Workplace giving: An employer match makes them feel their money will go further.
Appeals that don’t: Those that fail to emphasize the gift as a means of giving back or helping someone in need.
UNAWARE POTENTIALS
Slightly more women than men and fairly evenly split among age groups.
Traits: Charity isn’t foremost in mind, and they give less than donors over all (though they think they’re giving an average amount or more), but 38% say they intend to give more. They are least likely of all donors to claim a religious affiliation and politically are likely to be liberal. Nearly 60% say they feel pressed for time.
Percent of all donors: 28%
Potential Giving Per Year: $6 billion
Appeals that work: Think baby steps: These donors need to be educated about the work of charities and the value of giving back. Requests for small gifts via social media, at retail checkout counters, and in person at special events can get things started.
Appeals that don’t: Complicated solicitations or ones that assume the donor’s desire to give back.
UNENGAGED CRITICS
Slightly more men than women and fairly evenly split among age groups.
Traits: Often from affluent but not particularly philanthropic backgrounds. They give less than the average donor but don’t feel guilty about it. They are skeptical about the work of charities yet are least likely of all donors to research a group before making a gift. Only 3% believe that others have helped them, compared with 1 in 4 donors over all.
Percent of all donors: 23%
Potential giving per year: $1 billion
Appeals that work: Simple, direct messages that say clearly where the money is going. Reminders about ways to give easily, such as workplace programs or retail checkout counters.
Appeals that don’t: Vague appeals to give back or ones that don’t deal with the potential donor’s skepticism.
