Guide: Uncovering Hidden Donors in Your Database, Part 1

In the dynamic world of nonprofit fundraising, tapping into hidden donor potential can be a game-changer. Among these hidden gems are women first-time, monthly donors, multi-channel supporters, mid-level donors, and female philanthropists. These groups, when properly engaged, can significantly boost your organization's philanthropic efforts. Let's explore strategies to identify and upgrade these often-overlooked donor segments.

In part one of this two-part post, we’ll look at what is a hidden donor, first-time donors, monthly donors, multi-engagement donors, proactive donors, and women. The second part of this series will discuss mid-level and lapsed donors.

Who are “diamonds-in-the-rough” prospects?

These are individuals in your database who warrant more attention and stewardship. Hidden donors or “diamonds in the rough” are donors who might not be giving at their full capacity yet but have the potential to do so with the right engagement.

Paying Special Attention to First-Time Donors

First-time donors are an essential segment to focus on. Despite their initial contribution, they remain prospects due to the high attrition rates among first-time donors, which typically range from 20% to 30%. Ensuring these donors make a second gift is crucial.

Strategies to Engage First-Time Donors

Understanding why a donor gives is critical. Curiosity about their motivations can guide your communication strategy. Simple actions like picking up the phone or sending an email to ask why they donated can provide valuable insights. Even automated surveys post-donation can help gather information about their passions and reasons for supporting your cause.

Find the Monthly Gems

Beyond first-time donors, there are other donor segments that might be underutilized, such as monthly donors. These regular givers are often overlooked despite their consistent support. A $5 monthly donor may appear less significant than a $50 annual donor, but their recurring contributions demonstrate trust and a higher likelihood of continued support.

Importance of Monthly Donors

Monthly donors are invaluable because they provide predictable revenue and show a deeper level of commitment. Research indicates that monthly donors are seven times more likely to leave a bequest, making them critical to long-term fundraising strategies. However, these donors often receive perfunctory acknowledgments, missing opportunities for deeper engagement. It’s important to view their contributions as annual totals. If they give enough over the course of a year to be recognized as a major donor, make sure to include them!

Identifying Multi-Engagement Donors

Another valuable insight is identifying donors who engage in multiple ways. Donors who give and volunteer, fundraise, or promote your organization on social media are demonstrating a higher level of commitment. These multi-engagement signals are often more significant than the actual gift amount. These are the people you need to prioritize building long-term relationships with. They are ambassadors for your organization and your biggest cheerleaders.

Respond to Proactive Donors

Donors who proactively update their contact information or payment details without prompting should be highlighted. Their initiative indicates a strong desire to stay connected and support your organization.

Women: A Powerful Source of Philanthropy

Research consistently shows that women are a potent force in philanthropy. They tend to give more generously overall and are deeply committed to the causes they support. However, identifying female donors who can make substantial contributions requires a nuanced approach.

Understanding Women's Giving Patterns

Jennifer Filla, president of Aspire Research Group, highlights that traditional methods of identifying potential big donors often fall short when it comes to women. Unlike men, women typically distribute their wealth differently and tend to make smaller gifts to a larger number of organizations. This means they might not surface as major donors in a standard database search. Additionally, women often support smaller, basic-needs charities that may not publicly announce donations, making it harder to identify their philanthropic capacity.

To address this, Filla suggests developing a "female-focused" strategy that leverages specific readiness checklists. These checklists help organizations make the best use of their donor databases to pinpoint women who can make significant contributions.

Constituency Indicators to Monitor

There are other indicators that can help identify potential major donors. For example, donations from individuals outside your typical geographic area might signal a former service recipient who has gained capacity and wants to give back. Additionally, the surviving children of deceased long-time donors are often great prospects, as the philanthropic passion may have been passed down.

Essentially, look for donors who care about your organization. Look for the volunteers and the people who give regularly or have made mid-level gifts for years. These are the people you should nurture and reach.

Check back tomorrow for the second part of this series focusing on mid-level donors, lapsed donors and planned giving.