Donors more likely to give after seeing tangible results

Donor management software gives ministries and nonprofits the ability to view real-time data on their spending behavior, funding resources and the effectiveness of events. Delivering accurate numbers reflecting a nonprofit’s impact is one of the most influential practices an organization can do to enhance its donor roster.

Root Cause conducted a study on the giving process and the psychology behind donor motivation. The results showed that 75 percent of respondents look for concrete information about a charity’s achievements before making a decision about where to give. These potential donors place a high importance on confirming an organization’s success rate and whether or not it focuses on immediate or long-term changes. Fifty-one percent of donors seek out this information when planning to contribute to a charity for the first time.

Frequently, donors will look to third parties for statistics about overhead costs or organization rankings. It is important to offer this information willingly and clearly on the nonprofit group’s website so visitors don’t have to deviate away from the donation page. Single-page printouts with user-friendly infographics detailing numbers, impact and spending is highly desirable to donors. Root Cause deduced that 78 percent of potential backers preferred a one-page site or printout with explicit metrics and information. Before making a decision, people appreciate concise facts.

Making donating personal

Nonprofit Quarterly reiterated the importance of transparency for charitable organizations. Providing metrics and tangible evidence about how finances raised have a measurable effect on society bolsters the nonprofit’s public image and assures donors it is a trustworthy institution. Sometimes, it is the board of the organization that requires data, and having it readily available will make operations run smoothly.

The publication does add that a balance must be found between simply tossing out numbers to donors and actively cultivating a relationship with them. Phil Buchanan, a member of the Center for Effective Philanthropy, points out that the difference between business funding and philanthropic donating is in measuring the results. It is harder to accurately measure the effect a nonprofit has on a project. The return on investment is complicated to determine. Donor relationships require a little more finesse.

Alliance Magazine expounds on this idea when it comes to the next generation of big donors. It is clear that the large group of benefactors currently in their 20s and 30s have different priorities than their parents did. The starkest difference between the two groups is the need for the younger generation to not only donate, but to also have the biggest impact on its chosen cause as possible, whereas the older generation focused more on simply feeling good about having the option and means to give to charity.

The magazine asserts that this new generation favors personal engagement, collaboration and hands-on opportunities in lieu of passively sending cash or writing checks.  They seem to be results-driven where their parents were journey-driven. With an entrepreneurial spirit, this fresh generation of constituents is not afraid of riskier financial moves if it means simultaneously giving money and earning it. One study participant expressed her desire to include a charitable element to the company she was starting. She meant for this business aspect to keep her mindful of the needs of others while also pursuing her dreams.

The ability to create user-friendly graphics and communicate accurate numbers showing what progress has been made by a nonprofit is essential to building a supporter base, recruiting new donors and gleaning more funding and sustainability from current donors. The best way to do this is by implementing of donor management and fundraising software that offers methods of quickly and easily analyzing data, and formatting it into a useful communication tool.