For charities and nonprofits to grow and endure, it is essential to understand what inspires donors to give. What motivates a person to donate to one charity over another? Understanding the psychology of giving will help with planning the next fundraising campaign as well improve on current marketing strategies. Charities and nonprofits can enhance efforts that are emotional and persuasive, which is effective in compelling people into action. These are the top 3 reasons why people donate to charities and nonprofits.

1. Meaningful Endeavor

Giving to charities makes people feel good and inspires them to act with altruistic care for others. Research demonstrates that being kind gives people feelings of pleasure and reward. Charities should demonstrate they carry out meaningful work and show how individuals benefit from donations. People who consistently donate do so because they believe in the nonprofit’s cause.

For supporters to relate on a personal level, appeal to their emotions and encourage them to learn more about your mission and values. Using individual faces, personal stories, and powerful anecdotes have a stronger impact than just listing facts and generalizations. Nurture more personal relationships with supporters by inviting them to volunteer, attend an event, or they can take a tour of your offices and meet the team.

2. Trust

Donors support a specific nonprofit because they concur with its mission and they want to give money or time. To foster this trust, it is important to establish credibility and earn their loyalty. Transparency is crucial for creating relationships with contributors that last. Developing trust can be as easy as promptly thanking supporters. Donors value acknowledgement and appreciation of their contributions.

Posting financial details on the charity’s website such as annual reports show transparency on how the donors’ funds are being used. Your nonprofit should demonstrate that it is an effective steward of donations, but your appeals need to be more than just figures and pie charts. Building trust between your organization and its supporters takes time, just like any other relationship that is valued. And, once that trust is established, it offers a solid donor base.

Don’t Forget About Tax Benefits

The tax implications of contributing is important to certain donors even though it is not the top driving reasons to donate. If any of your donors exhibit interest in earning tax advantages, you should encourage them by distributing donation letters that include your tax-exempt status and the total amount of donations received. Donation receipts should be sent for contributions over a specific amount. A tax exemption is a benefit for many supporters, so charities should promote these kinds of incentives for donations.

Closing Thoughts

Every engagement that charities and nonprofits have with donors is impacted by the knowledge of why people support a particular charity. Story Resonate offers a donor management system that can help charities improve on their fundraising appeals through transparent, personalized and timeous communications. All these elements together with describing the effects of contributions offer chances for continued participation between the donor and charity. Enhanced communications can strengthen connections and convert first-time donors into enthusiastic and long-term supporters.