How To Find Donors for Your Nonprofit: Why They Give and Tips to Grow Your Donor Base

We’re pretty sure nobody starts something just to see it fail. Particularly not nonprofit founders whose intentions were to create impact and contribute to a cause.

However, you need more than good intentions to run a nonprofit and keep it from failing — and it gets even scarier. According to M+R Benchmarks, nonprofit donors gave 4% less in 2022 and 1% less in 2023. Put that side-by-side with the fact that the number of nonprofit organizations has grown 1.4% annually for the last 20 years.

Do you see the connection? Do you see why it gets scarier? The number of nonprofits increases as yearly average revenue decreases.

During this time, some nonprofits had their highest revenue in a long time. This is why you must push the boundaries on how to find donors willing to donate to your cause.

This article promises to do just that: show you how to find donors and get them to donate and do so repeatedly. Before we do this, let’s try to answer the fundamental question that powers the psychology of fundraising.

Why Do Donors Decide to Give?

Alignment with Your Mission

People donate because they believe that your mission aligns with theirs. So they trust you enough to take your word for it and put their gifts to good use. It may be illogical to trust a total stranger, but this is, in fact, backed by science.

The American Psychological Association gave some insights into how gift-giving is associated with the brain’s pleasure, social connection and trust centers. So, you might want to appeal to this part of people by showing how you further the causes they donate to and how it promotes the community.

Personal Experiences

Some donors give because they are empathetic and identify with would-be beneficiaries. They don’t want anyone else to go through what they did, or at least with less difficulty. This is true for 11% of donors — they cite their personal experiences as the primary reason for being generous.

This is why you should tell more stories. Someone is out there waiting to donate if you establish a personal connection with your story. Study your target audience and be more personal with your storytelling. Tweak your storytelling technique as much as you want until you get the desired results.

Hint: pay special attention to cultural sensitivities as you tweak so you don’t evoke the wrong response.

Faith and Religion

Whether it’s giving to religious institutions or donating to a non-religious cause, if you dig deeper, you will often find it’s a spiritual practice for some people. Giving a percentage of your earnings is a mainstay in several faith-based religions. You will often find some donors giving more than what’s demanded in their religions because they fear missing out on rewarding experiences. Use testimonials in your solicitation emails to create the desired effect of FOMO.

Social Dynamics

Remember how we used to want to do things as kids because other kids did them? It’s the same for grown-ups as well. Donors are influenced by what and who they see. Seeing peers supporting a cause can be motivating, particularly when those individuals are respected or influential within a community.

Ways you can get people motivated to give is to leverage social proof by:

• Publishing donor lists in the local paper or your newsletters
• Hosting recognition events for donors’ consistency

Taking this as a ritual at a consistent interval will encourage others to contribute. Highlighting stories of other donors on social media and how they came to donate to the cause can also create a compelling call to action that others may follow.

Tax Benefits

Understanding the tax implications of donations can also serve as a practical incentive for many donors. Educate potential donors about how their contributions can lead to tax deductions or credits, providing a tangible benefit that complements their altruistic motives. For example, explaining the tax advantages of different types of donations — such as cash, securities, matching gifts or goods — can help donors see the social and emotional benefits of giving as well as the financial ones.

Best Practices for Finding (and Retaining) New Donors

Understanding why donors give is not enough. You need to know how to find donors for nonprofit organizations. Here’s how to find and keep new donors:

Use Your Donor Database

Your donor database is a critical asset in your fundraising toolkit. It stores valuable data about your donors and provides insights that can be leveraged for more personalized and effective fundraising strategies. Here’s how to make the most of this resource:

Research Potential Donors’ Interests and Affiliations

How you research potential donors depends on the cause you champion. For example, an organization focused on environmental conservation might target donors with a history of supporting sustainability initiatives. They would research corporate donors known for ecological responsibility or individuals who have publicly advocated for or donated to green causes.

When you tailor your research, you will likely find potential donors willing to give and genuinely share your desire to make an impact. You can also use resources like DonateStuff, Good360, The Share Way, Million Dollar List, FEC and Double the Donation to streamline your search. We compiled a list of top companies donating to nonprofits to make your search easier.

Leverage Your Current Donors

Maximize the potential of your existing donor relationships by deepening their engagement with your cause. The purpose of donor cultivation should go beyond one-time donations. Think about volunteering and sharing your cause within their network. That’s much more sustainable and reduces your active search for donors.

Read this article for more detailed strategies for building such relationships.

Clean Up Your Donor Database

When you have great donor engagement strategies in place, you reduce operating costs and maintain an active sponsor and donor database. Here’s what we mean: some CRM solutions have tiered plans. One email or two is all it takes to pay for more functionalities you do not need.

Set a day aside when you go through your nonprofit donor database to remove outdated information, correct errors and merge duplicates. Doing this regularly improves your campaign numbers, ensures that your messages reach intended recipients and increases the likelihood of engagement and donations.

Reach Out to Lapsed Donors

Re-engaging lapsed donors can revive your funding stream. Start by analyzing your database to identify former donors who haven’t contributed recently. Develop personalized outreach strategies that remind them of their past donations and impact. Share updates on new developments and successes. Highlight how their renewed support can make a difference.

Host Great Fundraising Events

Successful fundraising events do more than just raise money. They deepen donor engagement. To hold a successful event, you must begin with a clear goal. Have a compelling theme to go with it so that your target audience can feel more in tune with the cause.

Every aspect of the event — from venue to entertainment — should align with your nonprofit’s mission, or you might send the wrong message. One event can make or break the relationship you have with prospective donors. Consider writing sponsorship letters early to maximize the event’s impact and revenue.

Marketing Campaigns

Effective marketing campaigns are crucial for attracting new supporters and increasing your nonprofit’s visibility. Your goal is to make your campaigns resonate with potential donors by effectively communicating your mission and the impact of their contributions.

Social Media

One way to spark interest and encourage donations is through social media. Show what’s happening behind the scenes and share success stories. Engage your audience with interactive content like polls, live videos and Q&A sessions to keep them involved and informed. This kind of direct engagement makes your efforts more visible. It helps build a committed community more likely to support your cause financially.

Email Campaigns

Email remains one of the most effective tools for directly communicating with potential and existing donors. Craft targeted campaigns that tell compelling stories and clearly state how donations are used. Segmenting your email list allows for more personalized messages, catering to recipients’ interests and past interactions. Solicitation emails are best effective when they inspire action, so consider incorporating best practices from WildApricot’s guide on writing solicitation emails.

Paid Advertising

Invest in paid advertising to reach potential donors outside your current network. Most paid advertising platforms allow you to target specific demographics, interests and behaviors. Develop clear, compelling ads that direct users to a particular action, such as signing up for a newsletter, registering for an event or making a donation.

Tracking the performance of your ads will help you understand which messages resonate best and ensure optimal use of your advertising budget. Companies like Google have made it easier for smaller nonprofits to promote their causes through ads by offering $10,000 advertising grants.

Share Impactful Stories

Tell stories. You’re not emotionally connecting with potential donors if you don’t tell stories. When you share testimonials about the lives changed through your programs, you create a personal connection that outlasts one-time donations.

In a recent study by the Indiana University Lilly Family School of Philanthropy on Understanding How Donors Make Giving Decisions, donors are more motivated to give when they understand the tangible impact of their contributions and feel personally connected to the cause. Use stories that highlight specific examples of success. Show how their donations have directly contributed to these outcomes.

Connect With Your Board

Your board members are not just overseers but ambassadors for your cause. They most probably connected to a network of individuals who want to contribute to your programs. Encourage them to host small gatherings where they share your organization’s stories and introduce new contacts to your nonprofit.

Each board member brings a unique circle of influence that, when explored, can improve awareness and support for your organization. Encouraging active participation and advocacy among your board can lead to fruitful partnerships and increased fundraising opportunities.

Build New Giving Programs

One way to boost fundraising is to create a variety of giving programs that appeal to different types of donors. Offering more donation options increases your chances of getting people to contribute meaningfully to a cause they feel connected to.

Matching Gift Programs

A great way to stretch donor contributions is by promoting matching gift programs. Many top companies match their employees’ donations, so their gift can have double the impact. Highlighting these opportunities increases your fundraising potential and gives donors a sense that their contribution is going further.

Peer-to-Peer Fundraising

Another powerful strategy is peer-to-peer fundraising. Here, you can leverage the “tell a friend” referral system, where your supporters fundraise on your behalf by reaching out to friends and family. This type of fundraising program has three advantages. You:

• Expand your organic reach
• Build awareness about your cause
• Raise more money

To take it up a notch, you can suggest peer fundraisers create personal fundraising pages and share why your mission matters to them.

Recurring Giving Program

If you want a reliable and steady flow of support, setting up a recurring giving program is the way to go. Recurring giving allows nonprofit donors to donate a set amount at regular intervals, monthly, quarterly or annually. This makes planning and budgeting a lot easier for you.

You can also sell donors the idea of ease. That is, they (donors) can just set it up once and not have to think about it again. Plus, it deepens their connection with your organization. Let’s be honest: when people feel more invested, they’re often willing to give even more down the road.

Make Donating Easy

The easier you make the donation process, the more likely people are to follow through. You want to remove any obstacles that could cause hesitation. Start by giving them a strong and clear call to action in your donation letter — don’t be vague. Also, make sure the process itself is simple.

Use tools like WildApricot to make it easy for donors to click, give and move on without jumping through hoops. The smoother and faster you make it, the more donations you’ll likely get.

User-Friendly Website

Your website is the first impression many people will get. Hence, it needs to be easy to use and visually appealing. Keep it clean and simple. Don’t overwhelm visitors with too much information or a messy layout. Make it easy for them to find what they’re looking for.

Regarding visuals, skip the stock photos and show real images of your work. People want to see where their donations are going, and real-life photos build trust. A well-designed, authentic website can keep people engaged longer, help them understand your mission and make them more likely to support you.

Leverage Giving Season

Don’t miss out on the prime times for fundraising! Key giving seasons, like the holidays, #GivingTuesday, or religious celebrations like Christmas, Ramadan or Diwali, are perfect opportunities to grow your donations. People are often more generous during these times as they typically save towards these periods, so it’s a great moment to reach out.

Create campaigns that speak to the season’s spirit and show how their contributions will make a significant impact. For example, during the holidays, you might focus on how a donation can help families in need or fund crucial projects for the new year. Connecting your message with the emotions of the season will increase the chances of both new and repeat donations.

Donor Appreciation

It’s so important to show your donors that you genuinely appreciate their support. A simple thank-you note, a mention in your newsletter, or an update on how their donation was used can make a big difference in how valued they feel. Personal touches go a long way.

But you don’t have to stop there—consider hosting appreciation events or giving them exclusive insights into your work. Donors who feel recognized and connected to what you’re doing are more likely to stick around and continue supporting your nonprofit.

Get More Donors and Boost Fundraising Efforts With WildApricot

If you want to take your nonprofit’s fundraising to the next level, having the right tools and strategies is a must. That’s where WildApricot comes in. WildApricot is all about helping nonprofits run more smoothly, whether managing your donor database or organizing events. Try it out with a free 60-day trial to see firsthand how it can make a difference in your fundraising efforts!