Donor Participation Project

Dr. Russell James, a professor of philanthropic psychology, shared his insights on fundraising best practices with nonprofit leaders at a recent Donor Participation Project conference. A renowned expert in fundraising research, Dr. James emphasized the importance of understanding donor motivation and using data to optimize fundraising strategies.

According to Dr. James, donors give primarily to enhance their identity and personal meaning through “identity-challenge-victory” cycles.

Nonprofits should connect donations to donors’ personal values and life experiences. For example, an environmental nonprofit could ask donors about when they first became passionate about conservation and who influenced them. These questions help tell donors’ stories and strengthen their bonds to the cause.

Learning Organizations

Dr. James also advocated for nonprofits to become “learning organizations” that constantly test and optimize fundraising strategies. Even successful organizations need to re-test approaches as circumstances change. While learning organizations risk leaders losing some control or prestige, the rewards of higher donations and a closer donor community make the effort worthwhile.

One key to learning is testing variations of the same campaign. For example, changing just one phrase in an appeal and measuring differences in response can yield valuable insights. The best tests change only one variable at a time to pinpoint what works.

Donors today also want two-way engagement, not just marketing messages. Dr. James suggested inviting donors to share their opinions and stories through surveys, social media, and online communities. Their responses help nonprofits personalize appeals and show donors their impact.

Overall, Dr. James demonstrated how fundraisers can gain a scientific edge. By understanding identity-linked motivation, fostering learning cultures, optimizing campaigns through testing, and creating conversations with donors, nonprofits can build highly engaging communities and help donors achieve meaningful victories together. With Dr. James’ data-driven approach, fundraisers can learn secrets to motivate donors more deeply.

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The COVID-19 pandemic has created many hardships for nonprofit organizations that rely on fundraising events and in-person donor meetings. During a recent discussion, two nonprofit fundraisers shared innovative ways they are overcoming these challenges.

Ali Evans, Director of Development at the Voice Thompson Institute, explained that her organization had to cancel their biggest annual fundraiser, a golf outing. “We’re trying to make how do you nicely say, yes, we’ll take your child and we’ll care for them but you need to, you know, do fundraising and help us do this,” she said. To make up for lost revenue, the Institute is focusing on building personal relationships with key donors through phone calls and letters.

Joan Smith, Director of Development at Little City, said her organization relies heavily on in-person events as well. When those had to be canceled, Little City turned to virtual events and webinars to engage donors, though she acknowledges virtual events don’t work for all donors, especially older ones. “I have donors say don’t mention COVID. I’m sick of it,” Smith said.

Both fundraisers emphasized the importance of donor stewardship during this difficult time. Evans noted that she has been helping donors with daily tasks like signing up for COVID-19 vaccines, which helps cement her organization’s relationship with donors. Smith has sent donors handmade masks with the Little City logo as a way to show the organization cares for the community.

While raising money during a pandemic is challenging, Evans and Smith prove that nonprofit fundraisers can succeed through creative thinking, digital outreach, and a focus on donor relationships. Fundraisers should segment their donor base, determine how different groups prefer to be engaged, and find ways to provide value to donors even when in-person events aren’t possible. A little bit of humanity and empathy can go a long way. Overall, nonprofit fundraisers must adapt quickly to keep their missions, and funding, alive during this crisis.

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Diversity, equity and inclusion are long-term priorities that require persistent work. For nonprofit leaders and fundraisers seeking to build more diverse and inclusive organizations, the path forward starts with allies, inclusion and curiosity.

There is no diversity without allies.

Joey Zumaya

Allies are critical partners in creating change.

Allies of underrepresented groups can advocate for diversity initiatives, endorse new policies, and recruit diverse board members and donors. Identify and empower allies at all levels of your organization. Make space for allies to learn and ask questions. Allies need inclusion too.

Inclusion is a must to achieve belonging. Policies and training are hollow without an inclusive culture where diverse staff and donors feel valued and heard. An inclusive environment encourages difficult conversations, shares decision making, and affirms people of all backgrounds.

Be mindful of how we affirm everyone and how we give them value. Model inclusion in your own words and actions.

Reshunda Mahone

Curiosity is key to learning. Many see diversity and inclusion as politically charged issues, but fundamentally they are about humanity. Approaching diversity with curiosity allows us to see our shared humanity.

Smart people ask more questions than make statements.

• Ask open-ended questions to learn from those with different life experiences.

• Create opportunities for donors and staff to share their perspectives.

• Check assumptions and be willing to feel uncomfortable.

Overall, advancing diversity and inclusion is challenging work, but allies, inclusion and curiosity can help overcome obstacles. Diverse and inclusive organizations are stronger, more innovative, and better able to serve their communities. With time and effort, nonprofit leaders can build a culture where everyone belongs. The rewards for this difficult work are well worth the investment. Focus on allies, foster inclusion, remain curious — and keep learning, asking and trying. Progress will follow.

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A university in Chile recently conducted in-depth interviews with long-time donors to better understand their motivations and desires. The results revealed that loyal donors want more opportunities to engage with the institution they have supported for years.

The university had previously relied on assumptions about what donors wanted based on industry research rather than directly asking supporters. They worried more communication and requests might irritate loyal donors or be seen as bothersome.

However, donor interviews uncovered strong interest in increased contact and chances to participate in the university community.

Donors reported they continue to give to support the university’s longevity and impact.

They feel a strong connection to the institution and want to help ensure its future. While donors appreciated being informed about the impact of their gifts, many said they likely wouldn’t closely read reports but wanted them as a sign of accountability.

The most surprising and actionable insight was donors’ interest in more invitations to campus events where they could connect with students, faculty, and other donors. Nearly all said they would welcome more frequent communication by email and phone and chances to refer friends to support the university.

For universities and nonprofits, these findings underscore the importance of speaking directly to donors to confirm or counter assumptions. Loyal donors may be far more open to engagement than expected if they feel a strong connection to the mission. An open-ended survey or series of interviews can reveal possibilities for better serving and further engaging valuable long-term donors.

With more opportunities to participate on campus and spread the word about the university, these dedicated supporters may become powerful ambassadors and open doors to even more philanthropic giving. Giving donors meaningful ways to do more for a cause they care deeply about can transform a transactional interaction into a lasting and mutually rewarding relationship. Overall, the moral of this story is simple: don’t be afraid to ask. Your most devoted donors will likely be thrilled you did.

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To rapidly expand an annual giving program, nonprofit fundraisers need a strategic vision, the right metrics, and a team-based approach. Eric, AVP of Annual Giving at the University of Tennessee, shared key strategies that grew the university’s annual giving donors by 54% over the course of a campaign.

Develop a long-term plan with ambitious goals.

UT set a goal to increase annual donors by 4,500 per year which drove strategies and accountability. While adjustments were needed, the goals provided direction.

Establish metrics and monitor data.

Metrics like donor participation, new donor counts, and lapsed donor reactivation rates were tracked to measure growth and make data-driven decisions. Daily monitoring of key metrics kept the team on track.

Build a cross-functional team.

UT adopted a “team-based” philosophy that aligned staff across advancement, colleges, and the university. Regular meetings with staff at all levels fostered collaboration to reach shared goals. Expanding the team beyond advancement was key.

Diversify fundraising channels.

While UT started with four channels (direct mail, email, phone, online), they expanded to include crowdfunding, student philanthropy, faculty/staff campaigns, and special events. Testing channel effectiveness using benchmarking data optimized the fundraising program.

Focus on the first gift and loyalty.

Programs targeting first-time donors and multi-year donors were prioritized. Segments like students, parents, and young alumni were engaged to acquire new donors. Loyalty programs like UT’s “Ten for Tennessee” turn new donors into recurring supporters.

Ultimately, rapidly growing an annual giving program requires vision, metrics, teamwork, channel diversity, and a priority on new and loyal donors. By strengthening these fundamentals, nonprofit fundraisers can build a thriving annual giving program. With strategic urgency and ambition, rapid growth is possible.

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Nonprofit fundraisers know that donor engagement is key to building long-lasting relationships and securing major gifts. Engaged donors who feel a strong connection to an organization’s mission are more likely to give generously and consistently over time.

According to research from the Donor Participation Project, the more involved donors are, the more they tend to donate.

While thanking and recognizing donors is important, true engagement goes deeper. Organizations must make donors feel like partners in achieving impact.

How can nonprofits effectively engage their donors?

• First, they need a compelling vision and case for support to inspire donors. Donors want to contribute to organizations that have a clear vision for change.

• Second, organizations should develop a range of strategic engagement opportunities at varying levels of involvement. For example, they can invite donors to exclusive events, join a donor committee, or provide input on new programs.

• Third, nonprofits must report impact to show donors the difference they are making. But reports alone are not enough. Organizations should share impact through meaningful experiences, like videos, site visits, or meetings with program beneficiaries.

• Fourth, nonprofits should take the time to get to know their donors‘ interests, motivations, and values. Then, they can tailor engagement and stewardship to match donors’ passions. This requires listening, asking thoughtful questions, and being genuinely curious about donors and their stories.

• Finally, nonprofit leaders and fundraisers should reframe how they speak about donors using language that emphasizes partnership and collaboration. Terms like “prospects” and “low-hanging fruit” can alienate donors and should be avoided.

Building authentic relationships is essential for nonprofits to achieve their missions. By prioritizing donor engagement, organizations can cultivate true partnerships and turn supporters into champions for their cause. Overall, donor engagement requires strategy, personalization, and a commitment to understanding donors as human partners on a shared journey.

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Nonprofits often struggle with limited resources and budgets, making donor stewardship a challenge. However, automating parts of the stewardship process can help nonprofits do more with less. By eliminating repetitive, manual tasks, nonprofits can free up staff time to focus on building personal relationships with donors.

A first step is to audit your current stewardship process to identify areas that can be automated.

For example, sending an automated thank you email to donors after they make a gift is an easy way to start. You can use free tools like Mailchimp or Sendinblue to set up automated email workflows based on donation amount or other attributes. For donors without an email, use a service like Zapier to automatically generate a thank you letter that you can print and mail.

Surveys are another area where automation helps.

Use a free survey tool like Google Forms or SurveyMonkey to send an annual donor survey. The data can automatically feed into a spreadsheet, giving you insights into donors’ interests and preferences to improve stewardship.

For more personal outreach, use automation to ease the workload.

Draft template emails or call scripts for student callers or interns to connect with donors over the phone. Have them record responses in a shared spreadsheet or use a free CRM like HubSpot to log interactions. Review the data to identify follow-up needs and next steps.

Celebrating donor milestones shows you value their long-term partnership.

Use a mail merge tool like Mailchimp to automatically generate anniversary letters for donors at certain giving levels or after a period of consecutive years of giving. Include a small gift as a token of your appreciation.

While technology and automation are powerful, always keep the human touch. Use automation for repetitive tasks, but have real people make personal follow-ups, send handwritten notes, and make calls. A balance of automation and human interaction will make donors feel most valued and connected to your mission. With some experimentation, nonprofits can find affordable ways to automate stewardship and build better donor relationships.

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Your donors ask questions—lots of them. The problem is, many nonprofits don’t have a system to capture these questions, analyze them for insights, and turn them into useful content. Questions your donors ask repeatedly point to gaps in the information you’re providing. Fill those gaps, and you’ll strengthen relationships, build trust, and enable donors to become more engaged and impactful partners in your mission.

So where do you find the questions your donors ask again and again?

• Start with your direct communication channels like phone, email, and social media messages.

• Survey frontline staff who talk to donors often. They know better than anyone else what questions get asked daily.

• Monitor online communities and groups where your donors and potential donors connect. Look for themes and trends in the information people are seeking.

• Conduct user experience testing to identify points of frustration in interacting with your organization. The questions that arise here highlight opportunities to better orient donors.

The key is getting into the mindset of your donors and what they need to understand their relationship with you fully. This means analyzing each question to understand the underlying concern or gap in knowledge. Some questions may be straightforward, but others point to bigger issues with how you educate and engage your community.

Don’t dismiss any question as too simple or unimportant. A question that seems basic to you may be a barrier for someone else to donate or get involved.

Low-quality, homemade videos addressing the most common questions are perfect for nonprofit audiences. They convey authenticity, build connection, and show you understand donors’ needs.

Keep your answers concise and let people self-select the information they need. Capture and organize the questions you get to refine your content over time. As donors learn and engage more deeply, the questions they ask will evolve. Continually go back to the source—your donors—to make sure the information you provide is as insight-driven and impactful as possible.

Staying on top of the questions your donors ask again and again is a key way to build relationships, increase trust, and empower your mission.

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Fundraisers test to determine if changes to their fundraising strategies have the intended impact. Rigorous testing also eliminates external variables that could skew the results. Without testing, fundraisers risk making changes that unintentionally decrease revenue or alienate donors.

To test properly, fundraisers must state a hypothesis

A hypothesis would be be “adding a $500 option to our donation page will increase the average gift amount.” The null hypothesis is that the change will have no effect or decrease revenue. Statistical testing aims to disprove the null hypothesis with a high degree of confidence, like 95-99%.

Measuring results requires determining a margin of error, like +/- 3%, based on the sample size. A larger sample size means a smaller margin of error and higher confidence in the results. For multivariate testing of several variables at once, the sample size must increase to account for more possible outcomes.

Back-testing uses historical data to build models that predict future outcomes.

Divide donors into groups, building models based on one group and testing them on the other. This confirms the model works for that donor base before applying it broadly.

While “best practices” provide a starting point, fundraisers must test them.

A tactic that works for some groups could alienate others, gradually eliminating them. Testing also considers donor segments to avoid negatively impacting any group.

Though testing sounds complicated, basic tools can run simple A/B tests. Focus on effect size, like whether results exceed the margin of error, more than statistical significance. For small donor populations like major donors, smaller sample sizes may still yield useful insights.

Testing requires time and resources, but so does making uninformed changes that reduce revenue. As fundraising becomes more data-driven, testing is key to developing evidence-based strategies tailored to each organization’s unique donor base. Fundraisers must test to determine true impact, eliminate variables, and avoid blindly adopting “best practices” that do not serve their donors or mission. Overall, testing leads to more sustainable growth and impact.

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