Understanding Donor Relations: Why We Give

Donor relations are at the heart of any not-for-profit business, which is why in today's post, we'll be unpacking exactly why people give.

By understanding the various psychological, moral, and practical reasons behind why donors contribute to certain causes, it can help us understand how we should promote our own philanthropic work.

Reason #1: Awareness of Need

The first reason may seem a bit self-explanatory: donors give to certain charities once they become aware of the issues those organizations are trying to solve.

Take for instance the famous ad campaigns by St. Jude Children's Research Hospital, which is currently ranked number 3 on Forbes for biggest charities in American at a total revenue of $2.3 billion. Part of what has made St. Jude such a renowned charity is its television commercial which have tugged at the heartstrings of millions of Americans.

Maybe hearing about the numbers that St. Jude brings in as a charity shocks you, it certainly shocked me! But what this one example shows is that more awareness of a charity itself compels donors more to make the decision to give. It proves that a nonprofit is only as successful as its marketing campaign.

Reason #2: Solicitation

This reason is perhaps the most common path donors undergo in reaching a decision to donate, and is where donor relations becomes the most necessary.

According to the Philanthropy Roundtable, a third of all charitable donations come from only 1% of the U.S. population, which goes to show that, while public awareness has its benefits, what really brings revenue to a nonprofit is its ability to solicit important donors, who tend to have the most impact on a nonprofit's success.

The important thing to remember about solicitation, is that it is most successful only after a relationship with the prospective donor has been formed. Universities like Florida International University even make use of donor relation officers who keep in touch with prospective families, making sure that trust is gained first. What this all goes to show is that a very important consideration people make when donating is whether or not they have a long-lasting relationship with the organization in question, which is a topic covered more at Network for Good's article. on the issue.

Reason #3: Reputation

Although we usually don't like to admit it, reputation is an important driving factor behind donors' decisions to contribute to their favorite causes.

Whether donors expect certain praise from the public or the organization itself, plenty of wealthy philanthropists do what they do partly because of the recognition that comes with giving large amounts to nonprofits.

The underlying concept here to understand is the difference extrinsic and intrinsic reasons for donating to a good cause. Intrinsic desire refers to a desire related to the activity itself, while extrinsic desire refers to a desire related to the additional rewards or consequences of that activity.

Rather than stay quiet on this reason for donating, successful nonprofits understand the validity of extrinsic desire and make the most of it. By recognizing notable donors and satisfying their desire for a better reputation, nonprofits show exactly why we should give more to philanthropy in the first place:

Whatever our reasons may be, supporting a good cause can be "win" for the nonprofit and the donor alike, showing how nonprofits have the potential to be truly beneficial additions to the economy and our community.