The 3 Types of Nonprofit Donors: Empathetic, Skeptical and Disconnected

In this blog post, we’ve explored the three types of nonprofit donors and how nonprofits can better understand each type and tailor their communication for better engaging each type for a maximum impact. So, let’s dive in.

The Hidden Cost of “I Don’t Know” for Nonprofits

Nonprofit leaders often overlook one of their most significant expenses: the cost of an “I Don’t Know.”. This expense, which doesn’t appear on the balance sheet, represents the lost opportunities that arise when people don’t understand a nonprofit’s mission and impact. These missed opportunities can impact fundraising, engagement, and service utilization because when potential donors lack awareness of your mission and impact, they can’t contribute or benefit from your work.

This is where Retention CRM can help. We specialize in developing digital assets like websites, apps, branding, and digital marketing campaigns specifically for non-profits. These digital assets aim to reduce the cost of “I don’t know” by increasing donor understanding and engagement.

The philanthropic landscape is constantly evolving, and donor behaviors and sentiments are changing rapidly. However, nonprofit organizations often struggle to keep up with these changes due to the complexity of bringing along various stakeholders. That’s where Retention CRM comes in. We help nonprofits navigate this changing landscape by providing various services including but not limited to SEO that are the new and more effective ways to connect with potential supporters and donors.

By reducing the cost of “I Don’t Know,” nonprofits can build stronger relationships with their supporters and donors, ultimately leading to increased engagement, fundraising, and impact. At Retention CRM, we’re committed to helping nonprofits achieve their mission and make a difference in their communities.

Understand The “Why” of Your Nonprofit Donors

One of the first things we do when nonprofits become our clients is help them better understand their potential donors. Our nonprofit consultants work closely with our clients to ensure that we’re approaching problems and opportunities with the right mindset. We help our clients understand the fundamental thought process behind ‘why’ people donate and support nonprofit organizations.

Traditionally, non-profits categorize donors by types: recurring, lapsed, legacy, or event donors. But this approach focuses on “what” a donor does, not “why” they do it. We encourage our clients to think differently. Instead of focusing on characteristics, we explore how donors identify with the beneficiaries and what inspires them to believe in the power of nonprofits to create positive change.

By shifting the focus to a donor’s “why,” our job as nonprofit consultants becomes simpler and more effective. We can tailor communication strategies that resonate with each donor group’s core motivations, ‘why’ donors believe in the mission of the nonprofit leading to stronger relationships and increased giving.

Go Beyond Demographics: Understand Your Nonprofit Donor Motivations

When exploring donor attitudes, it becomes evident that demographics alone do not capture the full spectrum of donor beliefs. It is crucial to shift our thinking and delve deeper into understanding these attitudes without preconceived notions. In our experience, we have almost always identified three distinct donor segments in our clients’ donor databases, each defined not by age, income, or location, but by their beliefs and motivations, beliefs in solutions, and views of beneficiaries. The key defining attributes of these segments lie in why they give, their belief in the impact of the nonprofit’s work, and their perceptions of the beneficiaries.

In our experience of nonprofit consulting, we have also found that these 3 types or segments do not exhibit significant demographic differences, highlighting that understanding supporters goes beyond age or other demographic factors. The essence lies in comprehending the “why” behind their support rather than categorizing them based on generational or other demographic labels. This doesn’t mean demographics are useless; it simply highlights the limitations. It’s not about Millennials giving differently than Legacy donors; it’s about tailoring your message to resonate with their core motivations.

The Three Types of Nonprofit Donors: Empathetic, Skeptical and Disconnected

Traditionally, nonprofit organizations create donor personas based on demographics: “Julia, the young professional who enjoys yoga.” But to better understand their supporter base, nonprofits need to go beyond this traditional persona thinking.

To understand the point we are trying to make, let’s imagine a company selling luxury candles. Their research might reveal three distinct buyer types:

• The Fragrance Fanatic: Motivated by scent, they see candles as a way to enhance their relaxation or social gatherings.
• The Design Devotee: They value candles as decorative elements to complete their home aesthetic.
• The Thoughtful Gift-Giver: Candles represent a way to express care and attention to loved ones.

Noticed something? These distinctions are based on motivations (“why they buy”), not demographics (“who they are”).

Applying this to Nonprofit Donors

This concept translates perfectly to the nonprofit world. Instead of generic personas, we can identify nonprofit donors based on their:

• Motivation (“Why they donate”): Is it empathy, skepticism (which we’ll address in a moment!), or a feeling of disconnect?
• Belief in solutions: Do they trust your organization’s ability to make a difference?
• View of beneficiaries: How do they feel about the people or causes you support?

Go Beyond Empathy To Understand Your Non-profit Donors

Non-profits traditionally focus on empathetic donors, those driven by a strong sense of social responsibility and a desire to help others. But a deeper understanding reveals a wider spectrum of motivations.

The Empathetic Donor

This group feels a personal responsibility to make a difference. Often, their families instilled a culture of charitable giving.

The Skeptical Donor

Motivated by a desire for recognition for their good deeds, these donors may hold a slightly condescending view of those in need. However, they are still crucial contributors, often donating significant sums. The key is understanding what they value in your organization before and after they give.

The Disconnected Donor

This group sees progress on social issues as a continuous journey, not a fixed problem with a solution. They believe everyone deserves help, regardless of background, and focus on ongoing progress rather than immediate solutions.  This differs from the empathetic donor who envisions themselves potentially needing help someday.

Triggers that Inspire Donors

Both skeptical and disconnected Donors are influenced and inspired by different triggers. 

• Skeptical Donors: This group of supporters are often swayed and motivated by external factors such as documentaries or current events, which can reshape their views and prompt them to support causes they previously overlooked. Education, demonstration, and compelling storytelling play a pivotal role in broadening the perspectives and fostering engagement of this segment.
• Disconnected Donors: This group of supporters has a unique perspective on empathy, believing that it cannot be imposed but must come from within. However, our interactions with them have revealed that personal connections and relevant storytelling can ignite empathy within them. While they may resist the idea of nonprofits creating empathy for them, a meaningful connection to a cause that resonates with their personal experiences can spark a sense of empathy and drive them to support the organization.

Here’s the key takeaway: Empathy isn’t something you can force. However, storytelling that creates a personal connection can spark its growth, even for the disconnected supporter. When a cause becomes relevant to their world, the potential for giving increases.

What are The 3 Nonprofit Donor Segments Looking For?

• The Empathetic Donor: They seek transparency about finances and a strong reputation, but their primary motivation is a desire to help.
• The Disconnected Donor: This group focuses on ongoing progress and believes everyone deserves help.
• The Skeptical Donor: They might not research extensively beforehand, but crave post-donation transparency. They want to see how their contribution impacts the cause.

Rethinking Donor Communication: The Power of Storytelling in Donor Engagement

Traditional donor communication often falls short because it treats all supporters the same. Here’s a new approach based on understanding donor motivations:

The Ripple Effect: Tailoring Stories to Your Audience

Imagine a classic story like Cinderella. How can we adapt it to resonate with different donor types?

• The Empathetic Donor:  They crave heartwarming stories.  Focus on Cinderella’s transformation: “From rags to riches” – a classic example of overcoming adversity. Highlight the authenticity of the struggle and how your support empowers positive change.
• The Skeptical Donor: They need proof and complexity.  Don’t shy away from the challenges Cinderella faced. Show how external factors beyond her control contributed to her situation.  Emphasize the systemic issues that create these situations.
• The Disconnected Donor:  They care about long-term impact.  The “happily ever after” isn’t enough.  Focus on the ripple effect.  Show how helping Cinderella strengthens the entire community: a happy royal family, increased access to education, and a lighter burden on social services. This broader impact connects to their vision of a stronger society.

Practical Tips for Engaging With Each Segment

The Empathetic Donor

These loyal donors are your biggest cheerleaders. They’re the first to respond, attend events frequently, and advocate for your cause.  

How to Engage with The Empathetic Donor?

Equip them with tools and resources to spread the word and inspire others.

The Skeptical Donor

These donors may be motivated by recognition from attending events like galas. They might require proof of impact before giving.

How to Engage with The Skeptical Donor?

Focus on transparency and showcasing the tangible results of your work.

The Disconnected Donor

This group prioritizes long-term progress over immediate solutions. They might respond well to urgent appeals or opportunities to be recognized, like matching campaigns or memorial tributes.

How to Engage with The Disconnected Donor?

Highlight the lasting impact of your efforts and how they contribute to a stronger community.

Ready to Make a Difference?

Contact Retention CRM now and book your free demo of our nonprofit donor management software and see how our product and services can help you achieve your mission and make a bigger impact on your community.