High-Dollar Donors: 88% Expect to Give Same or More Despite COVID-19
High-dollar donors are more likely to give now than before the pandemic, according to a new donor confidence study sponsored by CampaignCounsel.org.
View our webinar on the survey results here.
In the July survey of 200 high-dollar U.S. donors, 18 percent expect to give more this year than they did last year, while just 12 percent said they expected to give less. A strong majority of high-dollar donors (70 percent) are likely to give the same amount this year than they did before the COVID-19 pandemic. The online study was run by Campbell Rinker among donors who gave at least $2,500 total to charities in 2019.
“That’s 88 percent of high-dollar donors indicating they are still willing and able to give despite the pandemic, economic downturn and social justice concerns facing the country,” said Kevin Wallace, president of capital campaign planning and management company CampaignCounsel.org. “These results demonstrate that nonprofits should continue their fundraising efforts even though the landscape seems to have changed and even though they may be scared.”
While 18 percent of high-dollar donors expect to give more this year than last, just 11 percent of lower-dollar givers said the same. And the 12 percent of high-dollar donors who expected to give less was just half of the 25 percent of US lower-dollar donors said they would be giving less in 2020.
The Campbell Rinker Donor Confidence Index for high-dollar donors in July stands at 97.9, compared to an overall level of 91.0 for all U.S. donors, despite a resurgent COVID-19 pandemic, prolonged social justice demonstrations in the country. In context, the index for August 2018 for all donors stood at 97.6 and 106.8 for high-dollar donors. The baseline of 100 was set in pre-recession 2008.
Impact of Pandemic on High-Dollar Donors
In response to the pandemic, just four percent of high-dollar donors expected to stop giving until it passes. More than a third say giving would be among the last of their expenses to get cut (34 percent). Three in ten say they would eliminate several other expenses before cutting back on giving (30 percent), and another third said they would give just a bit more sparingly than before (32 percent).
“Donors who give at higher levels remain confident and see the ongoing importance of their gifts,” Wallace said. “Nonprofits rely on these generous donors. It is encouraging to see they remain engaged with philanthropy.”
According to the survey, most high-dollar donors say the current situation does not present an economic challenge to them. Eight in ten say they are under no economic stress, and just 13 percent say their situation is mildly challenging. Twenty-two percent of higher-dollar donor households say their income increased over the past year, compared to 17 percent who saw it decline. A 62 percent majority say it stayed the same.
High-Dollar Donors see Local Charities as Most Important
Like most donors, high-dollar donors see organizations that focus on local needs as most important to them (mean of 4.1 out of 5, slightly higher than “very important”). This was especially true among high-dollar Millennial generation donors.
As an organization’s focus grows wider, the perception of importance to donors declines, with regional (mean of 3.7), national (3.5) and international (3.0, just “somewhat important”) decreasing in impact. Only Gen-X donors break with this pattern, seeing national needs as significantly more important than their counterparts.
Support Decisions Driven by Prior Involvement and Mission
These donors also agree that their “prior involvement with an organization” and the “organization’s mission” share an equal impact on their decision to provide support. Ranked below these factors were the “impact a project would have on the organization and its service area” and “a personal relationship with the organization’s leaders.”
Millennial high-dollar donors were likelier to rate their personal relationships with leadership as an important gift decision factor compared to older donors. For their part, Gen-X donors saw a project’s impact as a more critical factor compared to other higher-dollar donors.
Specific Programs see Strongest Gift Intent
In terms of supporting charitable initiatives, high-dollar donors gave their highest support likelihood to “specific programs.” Following this leading initiative, unrestricted support for operations, improving infrastructure and funding endowments were significantly less popular among high-dollar donors.
“We’re glad to see that donors are passionate about giving to tangible programs that are vital during these challenging times,” Wallace said. “Findings like these keep us optimistic that pursuing solicitations right now is not only smart but can result in building better relationships with donors. We see this passion in the campaign planning process too. High level donors continue to engage with us because they want to help the charitable organizations that impact their communities. It’s wonderful to see that the individuals, corporations and foundations that account for the majority of philanthropic giving in the country remain engaged.”
Methodology
This online poll of 200 High-Dollar donors was sponsored by CampaignCounsel.org and conducted by Campbell Rinker from Jul 21 – 29, 2020. Responding donors had given at least $2,500 to charitable causes in 2019. Margin of error is ±6.7% at the 95% confidence level.
This study was coordinated with a broader study of US donor confidence fielded at the same time. Therefore, this study includes comparing high-value donor confidence with donor confidence nationally, measured at the same time.
About the Index
Campbell Rinker uses an index to measure donor confidence. An index is basically a way of defining ‘normal’ as a level of 100. In this way, we can compare other time periods or categories against the ‘normal’ rating for a simple ‘better or worse’ measurement. Campbell Rinker established its baseline index level of 100 in February 2008, prior to the recession that emerged in August of that year.
The Index takes into account several factors that Campbell Rinker asks about in its standardized Donor Confidence poll. For instance, they ask about a donors’ willingness to keep giving at the same level, more, or less, and why. They also factor in their impression of the US economy, their expectations for economic improvement, and their comfort with direction of the country and its leadership. While we’ve added new response options over time (e.g. to see if the pandemic affects future willingness to give – an impact that somehow slipped our mind in 2008), the formula has not changed. This makes the Index a trustworthy gauge over time.
About CampaignCounsel.org
CampaignCounsel.org is a capital campaign planning and management company that partners with civic, health, social, educational and faith-based nonprofits to raise capital for building projects. CampaignCounsel.org is based in southern Arizona and has team members across the country.
About Campbell Rinker
Campbell Rinker produces the highest-quality marketing research for non-profit organizations and other companies in the wider nonprofit community. Since 1991, Campbell Rinker staff members have honed and refined understanding of donor retention, member engagement, alumni motivations, volunteer interests and the perceptions and attitudes among all these vital nonprofit constituencies.
Updated March 10, 2021.
