Market Research for Your Middle Donors

I recently had a conversation with a friend of mine who works in the non-profit industry as a major gift officer. Having worked in the industry, but with a background in direct response background, it was interesting to hear his approach to how he engages with the donors within his purview. The key takeaway is that these donors were very high touch, but he wasn’t just reaching out to them to solicit donations from them.

Instead, a lot of his conversations with these donors consisted of learning as much about these donors as he possibly could. He would ask them questions about their motivations for donating, their values, and how the organization could best use their donations. This meant that the organization was able to create a more tailored and personalized experience for the donors. Beyond just creating a better experience for the donor, this also has a financial upside. A study from Accenture showed that donors are on average willing to donate 10% more to charities that provide a more personalized experience.

What my friend is doing in his frequent conversations is essentially informal market research. For major donors it makes sense. He can have frequent conversations with these donors as his portfolio consists of a manageable number. When dealing with mid-level donors, however, this method becomes more unmanageable. Many large organizations have several hundred or even thousands of mid-level donors, which means that it is a massive task for organizations to steward them in the same way that they do with major donors.

As a result, mid-level donors are often treated as either another segment of a charity's general mass market fundraising program or as “major donors lite”. Neither of these scenarios is ideal, and as a result, this is an area that remains underdeveloped for a lot of charities. Market research offers a solution to this, as these donors can be surveyed to learn about their motivations for donating, their values, and where they would like to see their money spent. Experienced market researchers are experienced in extracting this information so that it is both useful to decision-makers and, most importantly, statistically valid. This will allow organizations to create a more personalized experience for their mid-level donors with the knowledge that they are basing their decisions on good data. This could potentially lead to more satisfied – and more generous – donors.

Need help with your mid-level donor program? Feel free to reach out at m.lowery@lmrmarketresearch.com.