There are various perceived motives that form the basis of charitable intent. Three prominent economic models that explore altruism include 1) the public goods model, 2) the warm-glow model and 3) impact philanthropy. Many of our strategies focus on theories discussed in Brian Duncan’s “A theory of impact philanthropy”. The impact philanthropy model states that donors who give primarily to make a difference receive utility when their gift causes a direct change or impact on a social condition. These donors enjoy knowing how their gift directly benefited the cause of their concern. A nonprofit organization can increase its level of contributions by focusing its attention to impact donors. Although there are varying motives for giving, impact donors greatly enjoy the opportunity to target their donation because they appreciate seeing the impact of their giving. Conversely, these same donors do not like funding general operations because the use of their donation does not achieve a “direct” impact. For similar reasons, direct impact donors also prefer donating to smaller nonprofit organizations versus larger organizations because they perceive their donation can make a stronger impact. Nonprofit organizations who wish to target impact donors can create sponsoring agreements that showcase specific areas of need, but at the same time reinforce the general needs of the organization. The time and resources spent on attracting impact donors can be extremely beneficial for a nonprofit. Satisfied impact donors are more likely to remain involved with the organization. With the right approach, a nonprofit can also optimize the relationship, generating a charitable lifecycle of giving. For more information on our donor cultivation strategies, contact info@scottpractice.com.
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