What's On Donors' Minds?

Donor behaviour plays a crucial role in the world of philanthropy and fundraising, shaping the landscape of charitable giving and its impact on society. Understanding donor behaviour involves looking at the motivations, preferences and decision-making processes that drive individuals to contribute their time, money, or resources to support causes they believe in.  

Donors exhibit a diverse range of behaviours, influenced by various factors such as personal values, emotional connections, social influence and the overall impact of their contributions. By examining donor behaviour, organizations and fundraisers can gain valuable insights that enable them to engage and cultivate relationships with donors more effectively, ultimately enhancing their ability to drive positive change in the world.  

We are sharing five significant trends related to donor behaviour for your organization to consider as you update your fund development plan: 

1. Donations are falling behind service needs: Inflation and economic uncertainty is impacting donations. According to Imagine Canada’s It’s Time for a Change Report 2023, only 18.4% of Canadians made donations to charities (down, 5% from the previous year) and 20% planned to decrease their gifts. This resulted in 31.5% of charities raising fewer funds. With a decrease in volunteers and increasing demands for services, 57.3% of charities report that they are unable to meet the need and are concerned about staff burnout.  
2. Donors crave impact: Donors are becoming more focused on the impact of their donations. They want to see tangible outcomes and measurable results from the organizations they support. This trend has led to increased interest in metrics and transparency in the non-profit sector. 
3. Donors want to hear from you: Donors are seeking more engagement and interaction with the organizations they support. They want to be informed about the progress and impact of their donations, and they appreciate personalized communication and recognition for their contributions. 
4. Collaborate and Partner: Donors are recognizing the importance of collaboration and partnerships in addressing complex social issues. They are more likely to support organizations that demonstrate collaboration with other stakeholders, including other non-profits, businesses, and government entities. 
5. Donors need giving options: Donors are becoming savvier in their giving portfolio and are looking for other options to maximize their tax implications. For example, Donor Advised Funds (DAFs) have gained popularity as a giving vehicle. DAFs allow donors to make contributions to a fund and then recommend grants to charitable organizations over time. This approach provides flexibility and tax advantages for donors.