Two-thirds of donors say effectiveness is important in giving decisions.
“Money for Good II,” a follow-up project by Hope Consulting and GuideStar to 2010’s landmark “Money for Good” study, researched donor behavior and how to drive dollars to high-performing nonprofits.
Most donors want better information about the nonprofits they report, and they care deeply about those nonprofits’ effectiveness. Although just a third of individual donations are researched today, more donors would research their gifts if they had better information, in more transparent and clear formats.
The study shows that it is possible to influence about 5 percent of donations each year, which can lead to a shift of $15 billion in charitable donations. The research presents an opportunity for nonprofits to connect with donors better by providing more—and more detailed—information about their organizations. At the same time, it’s an opportunity to educate donors about the need to research before donating.
How are you keeping your donors informed?