Donors in the Digital Age
Not long ago, someone asked me how donor relationships have evolved over my career. That word, “evolve,” made me pause. Does it mean “improved” or simply “changed?”
The truth is, relationships have changed a lot, but it hasn’t always been for the better.
The most dramatic shift, of course, came during COVID-19. We couldn’t visit people, so we relied on Zoom, phone calls, and endless emails and text messages. Digital communications were necessary when physical interactions were impossible. Overreliance on these methods, though, created challenges that continue today.
Since the pandemic, fewer people are giving to charity, and those who do are giving smaller amounts. At the same time, nonprofits are communicating digitally more than ever. As technology use has increased, engagement has declined. If that feels backward, it’s because it is.
Think about your closest relationship. Imagine if it only existed through texts and FaceTime, instead of shared experiences. It’s better than nothing, but it’s not ideal. For donors, the same principle applies. Mass emails intend to keep them “in the loop,” but they don’t build connections.
Fewer Donors, More Concentrated Giving
The numbers tell the story. Fundraising once followed the 80/20 rule: 80% of funds came from 20% of donors. Now, about 93% of funds come from 7% of donors. Fewer people are carrying more of the weight, and much of the reason stems from donors feeling that nonprofits no longer value them personally. The turnover of fundraising professionals doesn’t help either. When a new fundraiser comes along every 18 months, it’s hard for donors to invest in the relationship.
Not All Donors Are Alike
One truth has remained constant over my decades of experience: donors give for different reasons. I break it down into three categories:
- Habitual Donors: These donors give regularly, often in modest amounts.
- Emotional Donors: They respond to a story or event, sometimes with a bigger gift, but less often.
- Strategic Donors: They give the most, but they don’t just write checks. They treat gifts like investments, so they ask many questions and build trust over time.
While any donor will feel closer to your charity with personal connection, strategic donors need it especially. They’re not giving to establish a scholarship or build a library; they’re giving to help people, and it just may be through a scholarship fund. They’re giving to people and for people.
Technology: Good, Bad, and In-Between
Technology becomes a trap when we use it to replace conversation. A mass email, or even a personal one, will never carry the impact that picking up the phone does. After a recent presentation I gave, I was riding home with my wife, Sheryl, and she asked me a question: “Why did you lie to your audience?”
Technology becomes a trap when we use it to replace conversation. A mass email, or even a personal one, will never carry the impact that picking up the phone does.
What was she talking about? I may be a lot of things, but I’m not a liar.
“You said that your alma mater has never asked you for money,” she clarified.
I replied, “Well, they haven’t.”
“Eddie, they send you mail all the time.”
Huh. Emails and brochures may save time, but does it really count as “asking” if we never even speak? When it comes to my alma mater, I feel like just another name on a list.
Used wisely, though, technology can supplement and strengthen our donor relationships. I once worked with a donor who lived hundreds of miles away. Most of our communication happened through intentional emails and FaceTime. I only visited once in person. Yet over time, the trust grew, and that donor gave a million dollars outright.
The tool doesn’t matter as much as how you use it. Making an impact requires consistency and sincerity.
Donor Data
Nonprofits have access to more donor data than ever before. That can be helpful, but it can also be a distraction. A zip code or net worth estimate doesn’t tell you who a person really is.
That said, data can show us useful patterns. For example, we know that the most generous group of donors is single women without children. Women in general give more than men, and that’s especially true when it comes to estate gifts. These patterns can inform which donors may be likely to give at certain times or in certain amounts. But again, data only gets you so far. Answering these questions is far easier when you have a relationship with your donor.
Personalization and Stewardship
Personalizing digital communication helps break through the clutter. A short, thoughtful message beats a flood of impersonal ones every time. It’s the same in marriage. If you text your spouse all day long, what’s left to talk about at dinner? Quality always trumps quantity.
In fundraising, a short update, such as “here’s what your gift made possible this month,” can mean more than ten “asks.” It shows you see the donor as a person, rather than a transaction. Using technology can be an effective supplement to a relationship, as long as we don’t rely on it.
The Way Forward
Technology is here to stay. The next generation of donors grew up with it, and they expect nonprofits to use it. But we can’t lose sight of the bigger truth: fundraising is and always will be about people.
Donors don’t give to emails, campaigns, or buildings. They give to people they trust, for causes they believe in.
Donors don’t give to emails, campaigns, or buildings. They give to people they trust, for causes they believe in.
So by all means, send the emails. Use the data. Host the Zooms. But don’t let them replace a handshake, a coffee, or a simple phone call that says, “We value you.”
The nonprofits that thrive will be those who remember that people give to people, not pixels.
©2025, Eddie Thompson, Ed.D., FCEP
Founder and CEO, Thompson & Associates
“If we merely aim for the industry standard, then our goal is mediocrity. Emulating the average nonprofit, we are destined to live with all the problems the average nonprofit faces. So, we suggest you aim to be exceptional in your approach to fund development.”
