What Motivates Donors Today?
Analyst Bharati Ganesh led a survey of 2,591 adults nationwide to shed light on what motivates people to give, what holds them back, and how nonprofits can adapt to meet the evolving expectations of modern donors. The results reveal clear answers: authenticity, transparency, and alignment with personal values are essential. Whether you’re a nonprofit leader or a potential donor, this newsletter offers insights to help you navigate these shifting trends and reignite the power of generosity.
According to a 2023 Giving USA report, charitable giving dropped 2.1% and the share of giving from individual donors declined slightly from 67.4% in 2022 to 67.2% now. This reflects a broader trend in decreased charitable giving over the last few years, exacerbated by inflation and the pandemic. At the same time, nonprofits and other charitable organizations are contending with greater apathy among potential donors and a shrinking number of small-dollar donors– who are defined as those contributing $500 or less.
Embold Research found that just under two-thirds (65%) say that donating directly to a nonprofit has at least some power to enact positive change in the world. However, there’s a markedly less positive intensity to this sentiment (24% say donating to a nonprofit has a lot of power to enact positive change) than there is to donating directly to a friend or family member in need (51%) or volunteering for a nonprofit (31%).
Despite the inclination to donate to nonprofits, there is some skepticism about the efficacy of donations and whether donations are going where nonprofits claim they are. The top reasons cited for supporting nonprofits are seeing proof of an organization’s impact (23%) and trusting the organization to do what it says with the money raised (21%). In a related open-ended question posed, there was a clear demographic divide. Older men were more likely to cite the percentage of money going to a nonprofit’s stated cause versus overhead costs, and how effectively funding is spent, as major factors they consider when donating. Younger women, on the other hand, were more likely to cite the measurable impact on people in need and the extent to which a particular nonprofit aligned with their values.
The missions, goals, and programming of nonprofits are what ultimately draw potential donors in. Sixty-one percent say that a nonprofit being aligned with their beliefs and values makes them consider donating– far surpassing other reasons across the board, including the second most-cited reason of it being one’s personal responsibility to give back (19%). On the flip side, not knowing enough about the specific issues that a nonprofit addresses and how they address them is the biggest reason why prospective donors hesitate (43%).
Our research also found that giving rewards or financial incentives for donating don’t move the needle significantly unless it is a matching gift program. Out of the six incentives tested, most fell flat, but 57% say they would be more likely to donate if offered a matching gift incentive. However, some incentives are more resonant with particular demographic groups. Fifty-three percent of Black respondents would be more likely to donate through a workplace program and 42% of those under 35 would be more likely to donate if they received a free gift for their contribution– demonstrating that there’s value in offering some of these incentives to better engage diverse donor segments.
TV is prospective donors’ primary news source– including local and national channels. The reliance on TV news is largely driven by those over 50, but notably, those under 50 report getting more of their information from other sources like podcasts (42% of men under 50 and 36% of women under 50) and social media platforms like Facebook, Instagram, and Twitter. The diverging media consumption habits here indicate that the ways in which nonprofits connect with younger generations of donors will need to keep evolving to effectively meet them where they are.
Key Takeaways:
- Donating directly to family and friends is perceived as more impactful than to nonprofits.
- Transparency and trust are crucial to engaging donors.
- Younger donors value alignment with their beliefs, while older donors focus on efficiency.
- Matching gift incentives are the most effective in driving donations.
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Meet the Analyst
Bharati joined the Embold team in 2024. She previously worked at Impact Research, helping advance Democratic campaigns and progressive causes through comprehensive quantitative and qualitative research. Bharati is originally from New Jersey, where she has extensive experience in polling and organizing. She graduated magna cum laude from Bryn Mawr College with a degree in Political Science, designing a conjoint survey experiment that assessed the impact of party cues in local elections as part of her senior thesis. Bharati is currently based in Washington DC and enjoys boxing, exploring museums, and searching for the best bagel in her spare time.