The Decisions Our Donors Are Making, Part 1

An increasing number of people are attempting to forecast where the obvious downturn in our economy will be felt the most. Those willing to foretell the future of fundraising in the nonprofit sector are certainly no exception. I am no fortune teller. Instead, I prefer to study human behavior as it relates to charitable giving; and, regardless of where the economy finds itself, my response to any such question about its future is quite simple. Any time we ask individuals to make quick, immediate decisions we will find it difficult to achieve our goals.

In order for the counsel we provide at Responsive to be helpful, we usually have to make something clear up front. I chose a long time ago not to see fundraising through the lens of methods (direct mail, special events, grant-writing, major gifts, etc.). Instead, at Responsive, we see charitable giving through the decisions that inform an individual’s gift. Whether that gift is received through the mail, at an event, or electronically is secondary to understanding what is actually happening in the hearts and minds of our donors. This way of seeing fundraising is best demonstrated in our three lanes - you will notice that, with these lanes, we make no reference to any method. Rather, experience with donors has taught us that each lane aligns with one of three types of decisions.

In our seminars, we use a simple exercise that allows our participants to visualize these three types of decisions. We ask each fundraiser to identify for themselves three gifts that are consistent with the decision-making process described in the three lanes. First we ask them to identify a gift that is the result of what we call a trivial decision. This decision generally yields a relatively small and unsubstantial gift and comes without any intent or obligation to give again.

I know that to suggest that any gift is motivated by a trivial decision is heart-wrenching for some of us. “Every gift counts,” we insist. But, after having done this exercise for more than five years almost exclusively with fundraisers, the evidence is clear; yes, we all make trivial decisions that translate into the gifts we give. Checking such assumptions can be especially helpful for those who want to think only the best of their donor’s decisions. We want to believe that our donors are contributing to our cause in the most meaningful ways. We hope the contributions they’re making reflect some measure of commitment—yet rarely do we have the types of conversations that are necessary for determining whether that’s the case. To debunk some of these assumptions, we ask our seminar participants to identify a second decision.

This next decision is the meaningful one. As its label implies, these decisions often have a story that precedes them: life-changing experiences, gratitude for an opportunity earlier in life, a strong value or conviction. The meaningful decision often reflects an interest in (and a commitment to) the cause and generally requires some planning before the actual gift is received.

The third decision is the significant one and plays out in the third lane. Admittedly, these are the types of decisions that many organizations need their donors to be making on their behalf right now. Unfortunately, these elusive decisions are beyond the reach of most organizations because the prerequisite is generally a donor who has already made a series of meaningful decisions on the organization’s behalf – they have, in effect, been giving in lane two for quite some time.

What our seminar participants discover about themselves and their own giving habits is revealing. Meaningful decisions consistently yield gifts five to ten times that of a trivial decision, and significant decisions are consistently at least ten times that of a meaningful decision. So, we ask participants to consider a few questions that seem especially pertinent at a time such as now when the decisions our donors are making might matter more than ever before. What the three lanes demonstrates is not only where these three types of decisions play out but why so many organizations may struggle to survive in the months and years ahead. It will not be for lack of donors or even for lack of gifts; it will be for lack of donors whose gifts are informed by meaningful decisions.

Tomorrow, I will share with you some of the science that helps us distinguish between these three types of decisions; and, later this week, I would like to share how your organization can utilize the three lanes to prepare for the road ahead. If your organization would like to coordinate some time with me and a member of our consulting team, please feel free to reach out. We will be more than happy to help you think critically through the challenges that your organization is encountering and provide some suggestions as to how we might help.

If you would like to read the next article in this series, please click here.