Skip to main content

Fundraising: Understanding individual donors' giving decisions

Behavioural science is used to predict human behaviour across a multitude of scenarios – from how people will respond to governmental interventions, to how society may behave on Mars. It is a fascinating field bringing together insights from psychology, economics, biology and neurosciences.

For fundraisers, this field can provide invaluable information to better understand donors. The benefits of giving, on human health, are believed to extend beyond immediate feel-good sensations. The Greater Good Science Centre at Berkeley, USA, compiled a wide range of findings showing that the act of giving reduces stress, contributes to longevity, lowers depression – and is even contagious. 

Giving Behaviour

Giving can also enhance one's sense of well-being, within the context of self–determination theory (SDT). Proposed in 1985, by scientists Edward Deci and Richard Ryan, SDT highlights three basic psychological needs for human contentment: autonomy, having the freedom to choose; competence, an individual's impact on the world; and relatedness, their social connection. Giving to good causes reinforces positive self-identity by fulfilling these needs.

Social factors also play a crucial role in giving behaviour. The principle of social proof, a concept popularised by psychologist, Robert Cialdini, suggests that people are more likely to engage in a behaviour if they see others doing it. Visible acts of generosity can inspire others to give, creating a positive ripple effect in communities. The concepts of commitment and consistency, also investigated by Cialdini, indicate that individuals who have given before are more likely to give again.

Another intriguing aspect of giving behaviour is the concept of 'identifiable victim effect.' First described by Thomas Schelling in 1968, it suggests that people are more likely to offer aid to a specific, identifiable individual, rather than a large, anonymous group, even if the latter represents a more significant need. Studies by Tanase et al. (2024), indicate that this still holds true. A study looked at the role of human faces and social presence in images on websites. Willingness to donate increased significantly on a webpage asking for contributions towards books, solely by changing the image. A picture of a pile of books garnered 30% of visitor donations, a generic image of children at school reached 50%, and a real image of children using the books, achieved a remarkable 68% visitor donations.

The psychology of giving also intersects with decision-making theories. Prospect theory, developed by Daniel Kahneman and Amos Tversky, suggests that people make decisions based on the potential value of losses and gains. In charitable giving, this can manifest as people being motivated by an immediate positive feeling of 'warm glow' (gain) than by the abstract long-term impact of their donation. Research has uncovered even more nuanced factors influencing giving behaviour. A study by Barasch et al. (2014) found that the mere act of imagining helping someone, stimulates the same parts of the brain that are activated during actual helping behaviour. This suggests that cultivating empathy and encouraging people to envision themselves helping others, could be a powerful tool in promoting NPO support.

Human brains like to take short cuts, resulting in several behavioural science principles that can impact fundraising. First-time donors to small, successful crowdfunding campaigns are more likely to return to a platform and donate again, than people who donated to large initiatives. It is thought that these donors feel a greater sense of impact by being one of fewer donors (Althoff and Leskovec, 2015). 

The 'anchoring effect' is another powerful concept. The first number that people encounter influences their subsequent decisions. For example, offering a tiered donation range helps individual donors to choose an amount to give. Multiple studies have shown that offering larger amounts (R250, R500, R1000 rather than, say, R100, R300, R500), leads to higher donations received overall. 

Combining the principles of anchoring and social proof, one effective tool to guide a donation choice, is to label a mid-tier amount as 'Most Popular' or 'Most Common'. However, anchoring can work both ways: if the tiers in the donation request are placed too high, donors may abandon the platform. 

'Nudges' are subtle changes that can influence people's decisions and behaviours, without restricting their options. In online giving, a nudge could be the use of colour, wording or placement of the 'donate' button to encourage more donations. Crowdfunding platform teams have found that using the nudge labelling 'most common donation', amongst the options, results in the majority of people choosing that amount.

The psychology behind The Ask

In the world of fundraising and soliciting support from individuals, the focus is often on the study of why and how people give. The act of asking for support, whether for a charitable cause or a business venture, is also a complex psychological process. According to a study by Bryant et al. (2003), a staggering 85% of donations occurred because someone (a person) made the ask. This underscores the importance of actively seeking support. However, asking can be challenging. The reasons for this are also rooted in behavioural science. Understanding and acknowledging that asking can be hard, allows a fundraising team to address and counter natural resistance. A factor is the fear of rejection. People often worry about being turned down. This is closely tied to loss aversion, where the fear of losing something (such as social standing or self-esteem) outweighs the potential gain. 

In a study published in the Journal of Experimental Social Psychology, Bohns and Flynn (2010), found that people consistently underestimate others' willingness to help. Individuals struggle to accurately predict how those approached will react to a request. Studies in communication psychology have shown that preparation can significantly reduce anxiety and improve performance in social interactions. It has been proven that narratives have a unique power to engage the brain, triggering emotional responses. To overcome the discomfort of asking for money, helpful strategies can be:

  • Framing the ask as an invitation to participate
  • Emphasising the impact of donations 
  • Using social proof (thirty others donated this week) 
  • Making a specific, achievable request
  • Understanding that expressing gratitude to donors builds their self-worth, and sense of belonging.

One of the most potent tools in a fundraiser's arsenal is the ability to tell compelling stories – and NPOs have superb, life-changing stories to tell!

Extract from Crowdfunding for Non-profits - A guide to activating support networks, by Jill Ritchie & Erica Schofield. For a short time only, available at a discounted pre-order price. https://thunda.fund/cfbook Offer ends 14 March.

Co-author, Erica Schofield, will be presenting a training course on crowdfunding on 18 March – a few places still available: https://www.papillonpress.biz/training/training-schedule/ 

By Jill Ritchie & Erica Schofield

Papillon Press

Jill Ritchie has over three decades of fundraising experience and has written 30 books, 21 on fundraising. She specialises in advising on the raising of money from the UK for organisations outside of Britain. Jill has worked with well over 1 000 non-profits and, in particular, universities, in southern and South Africa.

She chairs the UK Fund for Charities that enables UK donations worldwide and is the founder and chair of the SA-UK Trust Network (SA-UKTN), supporting UK fundraising for non-profits throughout sub-Saharan Africa . She is a founding board member of iZinga Assist and an ambassador of the Tutu Foundation UK. Jill is also a former council member of Tshwane University of Technology, the South African National Museum and the New York based Global Sourcing Council. She is a Fellow of the Southern African Institute of Fundraising (SAIF) and is also a member of the UK’s Chartered Institute of Fundraising.



Related articles


Start-up Capital for Income Generation
Jill Ritchie
Times are tough in numerous countries and many South Africans are finding things financially difficult. Not-for-profits are also feeling the pinch. There is less donor money available and the can...
Customisable and mobile: In-Contact transforms iThemba Lethu's data management and beneficiary tracking
Iris Cochrane, In-Contact | Advertorial
Case study: iThemba Lethu and In-Contact Client Overview iThemba Lethu are a long-established NPO who provide childcare and youth development to the Cato Manor area in Kwa-Zulu Natal. Whilst h...
Mastering funding applications: Essential tips for nonprofits
Jill Ritchie
Love them or hate them, if potential donors (or even existing donors for re-applying) have forms and require them to be completed, this must be adhered to. Application forms can be tedious. However...