Why people might give away their precious resources.

By: Darrell G. Edwards

As fundraising professionals, we are constantly faced with the challenge of determining why people might give away their precious resources. What compels a person in these uncertain economic times to contribute—at sometimes extraordinary levels? What are some of the factors that inspire a donor to respond to a particular solicitation while ignoring others? The following examples of why people give may serve to pique your interest and begin to answer these ever-present questions about donor motivations. Our success as fundraisers depends on the ability to accurately assess these motivations in order to properly chart a course of action for each prospective donor. Below, I sketch out a few of the most prevalent reasons motivating people to give.

PEOPLE GIVE BECAUSE THEY WERE ASKED TO DO SO: The number one reason that can be cited as to why people give is simply because they were asked to do so. One of the greatest challenges in fundraising is the responsibility of developing a plan that solicits all those who should be asked, and at the proper request level.

PEOPLE GIVE TO PEOPLE: The saying that people don’t give to organizations or a cause is basically true. Most gifts, regardless of size, can be traced to the fact that a donor was motivated or felt compelled to contribute because the correct person asked them to do so. People give to people. It is our job to conduct the necessary research to ensure that solicitors are properly trained and carefully matched with prospective donors.

PEOPLE GIVE TO MAKE A DIFFERENCE: In the combined experience of our firm, we have learned that people do, in fact, give to people—so personal solicitations by the right person is vital to getting meaningful gifts. Yet, one other factor seems to matter even more: people give the most generously when they clearly feel that they can make a difference. Incorporate this into your well-planned personal solicitations and you will have a “real winner.”

PEOPLE GIVE FOR A SENSE OF BELONGING: Some donors are motivated to contribute large gifts because several of their close friends have done so. As a result, it creates a sense of belonging to a small elite group of successful people. Just as in the corporate example mentioned above, a significant gift by a newcomer to town also creates an immediate sense of belonging for the individual in the community’s social hierarchy.

PEOPLE GIVE FOR VISIBILITY: The president of a long established company in town might give a significant gift in return for receiving visibility for themselves or for their company, either in the form of sponsorship or, on a more permanent basis, a naming opportunity on a building. Likewise the head of a new company might be inspired to do the same thing. Generally their motivation is more marketing and less philanthropic and centers to a greater degree on announcing their presence as a “player” in the community.

PEOPLE GIVE TO HONOR SOMEONE: Recent examples of people contributing to honor someone near and dear to them is the Calvin Turner Jr. family pledging $15 million to the proposed new symphony hall in Nashville. The hall will be named in honor of their mother. A different example of honoring someone is Ross Perot’s gift of $10 million to name the Dallas Symphony Hall, the Meyerson Symphony Center for his successful business associate at LDS, Morton Meyerson.

PEOPLE GIVE FOR THE ENJOYMENT OF FUTURE GENERATIONS: My favorite reason why people give is so their own children and grandchildren, as well as the broader community, will reap the benefits of an improved community and a stronger non-profit community. Hopefully, those future generations will in turn decide to support the same worthwhile cause for others that follow. When you can convince a donor of the worth of providing resources today for the enjoyment of not only their children, but for all children for many years to come, it results in a most gratifying moment for everyone involved.

PEOPLE GIVE FOR THE TAX BENEFIT: No one likes to admit it, but most people decide to contribute, at least in part, because there is a tax benefit in doing so. The idea of redirecting to a local cause some of the tax dollars that you would otherwise be sending off to Washington is a compelling reason for many if not all donors. Whether done so to reduce an annual tax burden or planned in advance to reduce estate taxes after death, both achieve the same direct benefit to the taxpayer’s community and preferred charities.

The above examples are just a few of the many reasons why people give. I am sure you can add your own examples to those mentioned. One of the most important tasks we have as development professionals is the proper assessment of all of our donor prospects. When you figure out your prospects’ most likely motivations for considering a gift, your job of preparing the correct approach to ensure a positive response becomes dramatically easier and your chance for success, greater.

Darrell G. Edwards was formerly a campaign director at Custom Development Solutions, Inc. (CDS). CDS is one of North America's most sought after fundraising consulting firms specializing in the strategic planning and tactical execution of capital campaigns for non-profits throughout the United States and Canada. More information on CDS can be found on the web at www.cdsfunds.com. If you have a fundraising question, please call 800-761-3833 or send an email to lcs@cdsfunds.com.