Donor Segmentation & Profiles

Donor Segmentation & Profiles
Grouping donors by giving patterns to help create better fundraising approaches.
Knowing how different types of donors give helps create better fundraising plans and keeps donors engaged.
Donor segmentation splits your supporters into groups with similar traits, which lets you:
Match your messages to what donors care about
Find your most important donors and keep them giving
Create personal plans for each donor type
Use your resources better
Common donor groups include big givers, monthly donors, one-time givers, past donors who stopped giving, and possible new donors. Each group needs a different approach to encourage their best giving.
By looking at giving history, how donors like to be contacted, and basic information about them, you can create donor profiles that help improve your fundraising and build stronger relationships.
Understanding Donor Segments
Breaking donors into groups helps nonprofits create better fundraising plans. By looking at giving history, basic information, and how donors engage, we can create donor profiles that help predict future giving.
Demographic Segmentation
Grouping donors by age, location, income, and other basic facts. This helps you know who your donors are so you can speak to them in the right way.
Behavioral Segmentation
Grouping donors by how often they give, when they last gave, and how they prefer to donate. This shows how people interact with your organization.
Psychographic Segmentation
Looking at donors' values, interests, and reasons for giving. This deeper understanding helps create more meaningful connections.
Key Donor Personas
1
First-Time Donors
People who have given once but not yet established a pattern. They need special attention to become regular donors through quick thank-yous and updates on how their gift helped.
2
Loyal Supporters
Regular donors who give smaller amounts often. They care deeply about your mission and respond well to monthly giving programs and membership options.
3
Major Gift Prospects
Donors who could give large gifts based on their wealth and interest. They usually need personal attention and special recognition.
4
Lapsed Donors
People who gave before but haven't in the past year or more. Try to bring them back by reminding them of your work and impact.
Using donor groups helps you use your resources better, keep more donors giving, and raise more money. By studying giving patterns across these groups, you can create more focused strategies for each type of donor.
Major Donor Segments
Most giving comes from individual donors, who gave about $374 billion (67%) of all donations in the U.S. in 2023. Other main sources of donations include:
Foundations – About 19% of all giving, focusing on structured grants and funding that creates impact.
Bequests – About 8% of all giving, often going to long-term projects that create a legacy.
Corporations – About 5% of all giving, mainly through company social programs.
Within individual donors, there's a wide range from wealthy individuals to small-dollar donors, each giving in different ways.
Individual Donors: The Backbone of Philanthropy
Individual donors come from all income levels and are the most diverse giving group. This group has remained strong, growing by 4.7% in 2023 compared to the year before, even during uncertain economic times. Studies show about 60% of American households give to charity, with the average household donating around $2,300 each year.
Key patterns among individual donors include:
Giving when prompted – Often giving after natural disasters, social movements, or during special campaigns (like year-end appeals)
Loyalty to specific causes – Most donors support 3-5 organizations tied to causes they care about personally
Shift to digital – Online giving has grown by 42% in the last three years, with mobile donations growing fastest
Foundations: Strategic Philanthropic Partners
Foundations include private, community, and corporate foundations, with total assets over $1.1 trillion in the United States. These groups gave about $105 billion in grants in 2023, making them a vital funding source for many nonprofits.
Today's foundation giving is marked by:
Measuring results – Growing focus on counting impact and using proven approaches
Working together – More foundations combining resources to make bigger changes
Mission-focused investments – Beyond grants, foundations now invest their money in ways that match their goals
Bequests and Planned Giving: The Legacy Factor
While making up a smaller share (8%) of all giving, bequest giving is expected to grow as the largest wealth transfer in history happens over the next 20 years. About $68 trillion will move from Baby Boomers to younger generations, with some going to charity.
Organizations that build good planned giving programs will benefit greatly from this transfer. Research shows that donors who include charities in their wills typically increase their lifetime giving by 30% after making this decision.
Corporate Philanthropy: Beyond Writing Checks
Corporate giving has grown from simple donations to full social responsibility programs. While money donations total about $28 billion yearly, corporate philanthropy also includes product donations, employee volunteer time, and cause-related marketing.
Today's corporate giving focuses on:
Matching business goals – Connecting giving with the company's main business and skills
Involving employees – Matching gift programs and volunteer opportunities that help keep employees happy
Meeting expectations – Responding to demands from customers, employees, and investors for social responsibility
Understanding these different donor groups and their unique features helps nonprofits create targeted strategies for cultivation, asking, and thanking that connect with each group's motivations and preferences.
High-Net-Worth Individuals (HNWI)
Wealthy individuals play a key role in giving to charities in the United States. They have unique giving patterns that greatly impact nonprofit organizations.
Giving Behavior
More than 91% of wealthy households donate, giving about $30,000 each year on average. They typically support 8-12 organizations yearly, mostly in education (56%), basic needs (45%), and religious causes (36%). Unlike regular donors, wealthy givers often research before donating and build longer relationships with the organizations they choose.
Motivations
Personal values, social duty, and wanting to "give back" drive most giving (about 70%). Many wealthy donors also want to make a real difference (65%), help with specific needs they care about (56%), and have a say in how their money is used (42%). Tax benefits matter, but less so - only 18% say it's their main reason for giving.
Giving Vehicles
Donor-Advised Funds (DAFs) – 1.95 million accounts in 2022, with about $117K in each one and $52 billion given out. DAFs have grown 28% yearly since 2017, offering tax benefits and easier giving.
Private Foundations – Used for big, planned giving with about 86,000 active foundations holding $1.1 trillion.
Charitable Trusts – Including trusts that provide income while supporting charity goals.
Direct Giving – Many wealthy people still prefer giving directly to organizations, especially when they know the leaders.
Preferred Giving Approach
Wealthy donors take a planned approach focused on results, favoring groups that show clear outcomes and match their personal goals. They increasingly want to work together with organizations (37%), make multi-year promises (42%), and join boards (28%) to increase their impact. A 2023 Bank of America study found 89% of wealthy donors research before giving, and 65% track what happens with their donations.
Emerging Trends
Wealthy donors are trying new ways of giving such as impact investing (31% growth since 2019), giving circles (where donors decide together), and using business methods in their charity work. Many also focus on diversity and inclusion efforts (58% say this matters) and getting the next generation involved through family foundations.
Understanding how wealthy donors think and act helps nonprofits create better ways to connect with this important group of supporters.
Foundations & Institutional Funders
1
Annual Giving
Gave over $100 billion in 2023, mostly through grants for specific programs that require measuring results. This makes up about 16% of all giving in the United States. Big foundations like Gates, Ford, and Rockefeller typically give out 5-10% of their money each year through regular grant cycles with formal applications.
2
Payout Rate
Give away about 7.5% of their assets yearly, which means most plan to exist forever. The law requires private foundations to give at least 5%, though many give more. Community foundations often give more (10-12%) because they focus on local giving rather than managing long-term funds. Total foundation assets reached nearly $1.3 trillion in 2022, ensuring they can continue funding for years to come.
3
Trends
Spend-down giving – Some major donors (like MacKenzie Scott) are giving large, unrestricted grants instead of creating permanent endowments. The Atlantic Philanthropies used this approach, giving away $8 billion before closing in 2020. Recently, the Libra Foundation started its "Just Economy Fund" with no-strings-attached funding for grassroots groups.
Trust-based giving – More foundations are offering unrestricted funding with simpler reporting requirements. The Ford Foundation has committed $1 billion to this approach, while the Trust-Based Philanthropy Project now includes over 60 foundations committed to fairer funding practices.
Team funding – Growing trend of funders working together and pooling money toward shared goals. Examples include the Climate and Land Use Alliance ($238M+) and Blue Meridian Partners ($2B+ for programs that help economic mobility).
4
Funding Priorities
Need proof that programs work, often focusing on areas like health, education, and fighting poverty. Foundations increasingly support changing systems rather than just providing direct services, with 65% of large foundations interested in policy-level work. Environmental and climate funding has grown fastest, increasing 14% yearly since 2018. Foundations also focus more on diversity, equity, and inclusion in both their giving and internal operations.
Corporate Philanthropy
Giving Mechanisms
Companies give through:
Corporate foundations (organized giving programs with set budgets and staff).
CSR & ESG programs (giving that aligns with sustainability goals and public expectations).
Direct giving (cash donations, sponsorships, and product/service donations).
Cause marketing (giving a portion of sales to charities).
Skilled volunteering (offering professional help to nonprofits).
On average, companies give about 0.9% of their profits before taxes, though top givers often donate 1-3%.
Recent Trends
Corporate support for social issues grew sharply in 2020, with a 90% rise in funding for racial and social justice from 2020 to 2021.
Almost all major companies (94%) match employee donations and offer volunteer programs.
More companies (89%) now focus their giving on causes related to their business or expertise.
Digital tools have made it easier to track and share the results of corporate giving.
More companies are working together, pooling resources to make a bigger difference.
During COVID-19, corporate giving hit a record $9.4 billion in 2020, up 41% from 2019.
Challenges
Few employees join workplace giving programs (about 20%, down from 25% before 2020).
Companies now tie giving to their brand image and stakeholder needs rather than just giving to be generous.
Measuring results remains hard, with 74% of giving officers struggling to show return on investment.
It's difficult to balance short-term profit goals with long-term social impact.
Giving programs often face criticism for "purpose-washing" when they don't truly match company values and actions.
Studies show that successful corporate giving needs support from top leaders, clear messaging, and meaningful employee involvement to benefit both society and business.
Small-Dollar Donors
Small-dollar donors together give billions to charities each year. While each gift may be small, these donors are the backbone of many nonprofit fundraising programs and make up a big part of all giving.
Annual Giving
Middle-income households give about $3,300 per year on average.
Small-dollar donors usually give between $25-500 each time, with many making monthly gifts of $18-35.
These donors provide about 60% of all nonprofit money even though they give less than major donors.
Demographics
The average U.S. donor is 64 years old and gives to charity twice a year.
Millennials and Gen Z care deeply about causes but give smaller amounts (about $481/year to multiple charities).
Women tend to be small-dollar donors more often, giving to 3.3 organizations on average compared to 2.8 for men.
People who attend religious services regularly give 3.4 times more than those who don't.
Households earning under $50,000 make up 32% of all charitable giving in the United States.
Preferred Giving Channels
Digital-first giving – 64% of donors prefer to donate online using credit/debit cards.
Social media influence – 32% of small-dollar donors say social media inspires them to give.
Mobile giving is growing, with 25% of donors giving on smartphones or tablets.
Peer-to-peer fundraising drives 15-20% of small donations, especially among younger donors.
Monthly giving programs are becoming more popular, with regular donors giving 42% more per year than one-time donors.
Text-to-give campaigns work well for crisis and disaster relief fundraising.
Understanding small-dollar donors matters for nonprofits of all sizes. These supporters often become long-term helpers, volunteers, and eventually larger donors when properly engaged. Organizations that build good relationships with small-dollar donors usually keep more donors and have steadier funding over time.
Donor Demographics & Preferences
Understanding Donor Behavior
Donors give for different reasons and prefer different ways to be contacted. Some respond to emotional stories, others to facts and figures. What works depends on their values, how much they trust your organization, and if they believe their gift makes a difference.
Demographic Factors
Age, values, and preferences affect how people give. Where donors live, how much they earn, their education, and their job also matter. Cultural background and generation shape what causes they support and how they like to be contacted.
Giving Patterns
Different groups give different amounts and at different times. First-time donors usually give less, while regular donors often give more over time. Many people give at the end of the year, which makes up about 30% of yearly donations for many nonprofits.
Understanding donor demographics helps create better fundraising plans. When you know what drives people to give, you can better connect with different donor groups. Research shows donors want messages that speak to their interests and acknowledge their past support.
Good fundraising recognizes that different groups respond to different messages. Younger donors (Millennials and Gen Z) care about making a difference and want to see where their money goes. Older donors often care more about stability and leaving a legacy. Online outreach matters for all age groups, though each prefers different platforms.
Organizations that study their donors do better at keeping them and increasing donations over time. By looking at giving habits, communication preferences, and demographic information, nonprofits can create more effective appeals. This builds stronger relationships and more reliable funding.
How Different Age Groups Give
Knowing how people of different ages give to charity helps nonprofits better connect with donors. Each generation gives differently, has different reasons for giving, and prefers different ways to communicate.
1
Millennials & Gen Z
Tech-savvy and focused on causes they care about.
84% give to charity, but in smaller amounts (about $481/year).
59% are influenced by social media.
Prefer giving by phone and monthly donations.
Like to volunteer and raise money with friends.
Often support environment, civil rights, and global causes.
Respond best to stories with images and honest messages.
2
Gen X & Boomers
Give larger amounts (about $1,200 yearly to multiple groups).
Stay loyal longer, typically 4-7 years.
Respond to both mail and digital outreach.
Care about efficiency and proven results.
Boomers make up 41% of all giving in the US.
Like organized giving programs and matching gifts.
More likely to respond to phone calls and in-person events.
3
Older Adults (75+)
Most generous group, with 88% giving to charity.
Often give through wills or faith-based groups.
Give about $1,500 per year on average.
Motivated by religious values and helping communities.
Prefer traditional mail and phone calls.
Value personal relationships with organizations.
Like opportunities to leave a legacy and be recognized.
Understanding these differences helps nonprofits create better fundraising plans and communication for donors of all ages. While these patterns are helpful guides, remember that people within each age group may have their own unique preferences.
Ideological & Value-Based Giving
Conservative Donors
Support faith-based groups, local communities, veterans, and traditional values
Liberal Donors
Support social justice, environmental causes, human rights, and global development
Value Alignment
Essential for engaging donors long-term
Conservative donors often give to faith-based and local groups. About 67% give to religious organizations (compared to 41% of liberal donors). They tend to support self-help programs, veteran causes, and traditional family values. These donors like clear reports showing how their money helps communities.
Liberal donors typically support social justice, human services, and global development. They give to environmental groups almost twice as much as conservatives do. They also tend to support health research, arts, and education more. Liberal donors often want to create big changes and are 38% more likely to support advocacy groups.
Independent and moderate donors often give to causes across political lines based on personal connections. Research shows 72% of all donors give mainly because of personal values, not political views.
Main point: Matching your message to donor values is key. Successful organizations connect with diverse donors by focusing on shared values like strong communities, creating opportunities, and human dignity, while carefully wording their impact to appeal to different audiences.
Giving Vehicles & Trends
Strategic Philanthropy
Focus on long-term results with clear outcomes and proven approaches
Structured Giving
DAFs, trusts, and foundations that offer tax benefits and planned giving options
Direct Donations
Individual gifts through cash, credit cards, digital wallets and regular giving programs
Knowing the different ways people give and new trends in charitable giving helps organizations improve their fundraising and connect better with donors.
Strategic philanthropy means giving that aims for clear results, where donors want to see measurable impact and lasting solutions to big problems. This often includes commitments over several years, donors working together, and using business ideas in charity work.
Structured giving tools like Donor-Advised Funds (DAFs), charitable trusts, and private foundations are becoming more popular, especially among wealthy people looking for tax savings and legacy planning. These tools let donors give now but spread out their support over time.
Direct donations remain the main source of funding for most nonprofits. New digital platforms, monthly giving programs, and workplace giving make it easier for people to support causes they care about. Mobile and social media giving are changing how organizations connect with smaller donors.
New trends include investing for both financial and social returns, groups of funders working together, and more focus on diversity, equity, and inclusion in giving practices. Organizations that understand and adapt to these changing giving patterns set themselves up for lasting fundraising success.
Donor-Advised Funds (DAFs)
22.5%
DAF Payout Rate
Higher than foundation grants
1.95M
DAF Accounts
As of 2022
$52B
Granted
Total DAF grants
Donor-Advised Funds are growing fast in the giving world. They pay out about 22.5% of their funds to charities each year - much more than traditional foundations. This shows how well DAFs help move money to nonprofits.
DAFs work like charity savings accounts. Donors get tax breaks right away but can support their favorite causes over time. Many people put several years' worth of donations into DAFs for tax reasons and then give the money to charities bit by bit.
DAFs keep getting more popular, with almost 2 million accounts across the country as of 2022. More donors choose DAFs because they're easier to use than setting up private foundations.
DAFs give more than $52 billion to charities each year. This makes them a major source of funding for nonprofits. Organizations that know how to work with DAF donors can tap into this growing source of support.
Charitable Trusts & Giving Circles
More middle and upper-income donors use these to plan their long-term giving.
Charitable Trusts
Charitable trusts are legal setups that let donors give assets while keeping some benefits. There are two main types:
Charitable Remainder Trusts (CRTs): Give income to donors while they live, then the remaining money goes to charity when they pass away
Charitable Lead Trusts (CLTs): Send income to charities for a set time, then the remaining assets go to family members or other people
These options offer tax savings while making a lasting difference.
Giving Circles
Giving circles are groups where people:
Put their donations together to make a bigger impact
Choose together which organizations get the money
Learn as a group about community needs and effective giving
This approach makes giving more open to everyone and creates community among donors. Most members give between $400 and $2,000 each year.
Both charitable trusts and giving circles show how donors want to give in more thoughtful ways that create long-term impact and build connections with others.
Restricted vs. Unrestricted Giving
Looking at how different types of donations affect how nonprofits operate and succeed.
1
Restricted Funding
Foundations often prefer restricted funding, which means donations must be used for specific programs or projects. This lets donors track their impact more easily, but limits how nonprofits can use the money and creates extra paperwork.
2
Shifting Trends
More donors are now considering flexible funding options. Studies show that unrestricted funding helps create stronger organizations. Many donors are rethinking their approach, especially after seeing how nonprofits needed flexibility during the pandemic.
3
Unrestricted Giving
Unrestricted giving is growing fast, supported by trust-based philanthropy. These donations allow nonprofits to use funds where they're most needed, build their operations, respond to new challenges, and create financial stability. Major foundations like Ford, MacArthur, and Hewlett now support this approach.
This change shows a shift from a transaction-based relationship to a partnership where donors trust nonprofit leaders to make the best decisions about how to use resources.
Donor Engagement & Retention Trends
Dropping Retention: A Growing Problem
In 2023, only about 57% of donors worldwide gave again. North American retention was just 46.6% - well below global averages.
Over half of donors from 2022 did not give in 2023, showing a worrying trend in donor loyalty.
This drop means billions in lost possible income and shows a big shift in how donors behave.
Getting New Donors is Harder:
The field saw an 18% drop in new donor numbers in 2022, putting more pressure on keeping current supporters.
Groups now spend 50-100% more to find new donors than they did decades ago.
Online donor finding costs have gone up by over 30% since COVID began.
How This Affects Nonprofit Survival:
The mix of retention problems and rising costs is causing money trouble for nonprofits of all sizes.
Groups with good retention plans raise 23% more money overall.
Using multiple ways to reach donors works 4 times better than using just one way.
Differences Between Age Groups:
Millennials and Gen Z engage differently, wanting more openness and clear reports on impact.
Boomers stay the most loyal but need special approaches as they get older.
Factors Affecting Engagement & Retention
Transparency & Communication
Regular updates build donor trust and loyalty. Donors who get clear information about how their gifts are used are 38% more likely to give again. Groups that share both successes and challenges build stronger relationships with supporters.
Easy Giving Experience
Complex donation processes reduce repeat giving. Each extra step in donating can lower completion rates by up to 10%. Mobile-friendly platforms, saved payment details, and simple forms greatly increase donor retention and satisfaction.
Personal Connection & Recognition
Small donors engage more when they see clear impact. Personal thank-you messages increase giving by 14% in later donations. Showing specific results (like "your $50 provided 20 meals") creates stronger emotional bonds than general thanks and encourages continued support.
Value Alignment & Mission Connection
Donors prefer organizations that share their values. When supporters feel an organization truly represents their personal values, retention rates can rise by up to 26%. Regular reminders of shared values in communications strengthen this bond.
Strategies to Improve Retention
Using targeted approaches based on donor behavior data shows a 23% increase in retention rates for organizations that use multiple strategies.
Segmentation & Personalization
Match messages to different donor types (detailed reports for major donors, stories for small-dollar donors). Groups using good segmentation report up to 30% higher retention rates. Effective grouping considers giving level, communication preferences, past engagement, and interests.
Using Technology
Tools that track and engage at-risk donors help maintain relationships. Data analysis can spot donors likely to stop giving up to 60 days in advance, creating chances to reconnect. Organizations using these tools report 45% better renewal rates for at-risk donors.
Growing Monthly Giving Programs
40% of Millennials and nearly 50% of Boomers prefer recurring donations. Monthly donors have an 87% retention rate compared to 46% for one-time donors. Groups that show the impact of ongoing support and make recurring donations the default option see subscription rates increase by 28% on average.
Building Community
Donors who feel part of a community are 67% more likely to keep supporting long-term. Peer-to-peer activities, donor groups, and special events create belonging beyond just giving money. Organizations that connect supporters see more advocacy and donor referrals.
Good donor retention strategies need teamwork across departments, with communications, fundraising, and program staff working together to create an experience that highlights impact, recognition, and relationship-building at every point of contact.
Key Takeaways
Our study of different donor groups and giving patterns shows important insights that can improve how your nonprofit connects with donors. By knowing what makes each donor type unique, you can create strategies that work better for specific groups.
HNWIs and Foundations Dominate
Wealthy individuals and foundations provide the largest portion of total giving. These donors need special attention, personal relationships, and clear reports showing how their money makes a difference. Organizations that show measurable results and keep in regular contact with major donors raise more money.
Small-Dollar Donor Engagement
People who give smaller amounts often find and connect with causes through digital channels and social media. Having user-friendly online giving options, mobile-friendly websites, and active social media is key for reaching these donors. While they give less individually, together they provide significant funding and often become strong supporters. Organizations with easy digital donation processes and quick impact updates see more repeat giving.
DAFs Growing Rapidly
Donor-Advised Funds (DAFs) are becoming one of the fastest-growing ways people give unrestricted funding. These flexible giving tools need specific outreach that considers both the person advising the fund and the sponsoring organization. Successful nonprofits create special DAF programs, add DAF options on donation pages, and explain the benefits of this giving method. These funds are especially valuable because they can be used wherever needed.
Retention Challenges
Keeping donors remains a big challenge, with only about 45% of first-time donors giving again. This means organizations need better ways to thank donors, keep them engaged, and communicate with them personally. Groups that welcome new donors properly, regularly report on impact, and recognize donors meaningfully keep more of their supporters. Investing in keeping current donors usually brings better results than finding new ones.
Value Alignment
Matching your organization's values with what donors care about is now the most important factor in building lasting relationships. Today's donors, especially younger ones, research organizations carefully before giving and want to know exactly how their money is used. Successful fundraising clearly states the organization's mission and values in all communications. Nonprofits that show their impact in ways that connect with donor priorities build stronger loyalty and higher lifetime giving.
This approach ensures that you tailor your strategies to each donor group, improving both fundraising results and donor loyalty. By creating specific communication plans for different segments, making digital interactions easy, and consistently showing impact, organizations can build a strong fundraising system that supports long-term growth. The most successful organizations share these insights across all departments, making sure program development, communications, and fundraising teams work together to create a consistent donor experience.