THE NEW SHAPE OF FUNDRAISING

Part 2: Strategies to Grow Your Middle & Major Donor Fundraising Programs

From Carter Wade, Chief Growth Officer, BDI

During my nearly 40-year career partnering exclusively with nonprofit organizations, I’ve spent the past 15 years focusing on consulting and coaching organizations both nationally and internationally on their middle and major donor fundraising programs. Our goal together has always been to significantly grow their revenue and donor loyalty over time.

But there are some important shifts happening in philanthropy today which require specific fundraising strategies to maximize giving from middle and major donors.

From Donor Pyramid to Donor Trapezoid

BDI recently unveiled a key study on how the composition of Rescue Mission donor files is changing dramatically. Many nonprofit organizations have traditionally had a file that looks like a donor pyramid: mass donors at the bottom (representing the largest group generating revenue), then with a smaller number of middle donors, major donors, and legacy givers as you move up the pyramid.

However, due to changes in recent file composition, significantly more income is now being generated from middle and major donors – exceeding giving from mass donors. As a result, the donor pyramid is morphing into a donor trapezoid.

Today’s middle and major donors require a different approach than in past years to generate significantly more income. If you missed it, I encourage you to read Part 1 of this series, The New Shape of Fundraising, from BDI Chief Creative Officer James Read, which explores the creative pivots organizations must make.

Based on these shifts in donor file composition, Rescue Missions are facing an increased need to adjust their fundraising strategies and approaches to generate more income from both middle and major donors – and retain them long-term. Adapting our strategies is essential to secure their loyalty, especially as today’s donors narrow their giving to fewer organizations.

Key Trends, Strategies & Approaches to Grow Middle & Major Donors

The following is a list of key trends that are influencing giving decisions among middle and major donors today. They illustrate a fundamental shift in how organizations can earn the trust and loyalty of these important donors going forward:

1. Increased Focus on Impact: Donors want a greater understanding of the impact of their contributions to see measurable outcomes and how their donations are making a difference (e.g., how many lives are being changed, examples of long-term transformation, etc.).
   
   
2. Choice, Convenience and Control: Donors want to have choice, convenience and control over when and how they give to a nonprofit. So, it’s important to break down any internal silos and allow donors to give in the way they choose to make the experience the best it can be.
   
   
3. Two-Way Relationship With a Representative: Based on my extensive experience in partnering with nonprofits, I’ve consistently found that only about 1 in 3 major donors desire a two-way relationship with a representative from an organization. So, stop trying to force every donor to meet with you, and honor donors who prefer autonomy over engaging with a rep.
   
   
4. Holistic Approaches to Giving: Donors are looking for faith-based organizations that take a holistic approach to addressing issues like homelessness, hunger and addiction. Not just a temporary fix, but those providing long-term, proven solutions.
   
   
5. Increased Transparency and Accountability: Donors are seeking greater transparency and accountability by organizations. This means moving beyond transactional giving and prioritizing donor connections built on authenticity in your fundraising.
   
   
6. Personalization of Giving: Supporters expect more personalized experiences in their philanthropy. This trend includes tailored communication from organizations and opportunities for donors to engage with the causes they care about in ways that aren’t only through financial giving.
   
   
7. Sustainable Funding Models: Donors are increasingly interested in supporting sustainable funding models for nonprofits, such as social enterprises or models that generate their own revenue, ensuring long-term viability.
   
   
8. Donor-Advised Funds (DAFs): The use of donor-advised funds has experienced explosive growth, with total assets soaring to around $326 billion in 2024, nearly doubling since 2020. These funds allow donors to contribute to a fund, receive an immediate tax deduction and then recommend grants to charities over time. This flexibility is appealing to middle and major donors.
   
   
9. Technology and Innovation: There is a growing interest in supporting technological solutions to social problems. Donors are inclined to fund innovative approaches that leverage technology to improve efficiency and outcomes in nonprofit work.
   
   
10. Responsive Giving: Donors are responsive to urgent needs, particularly in times of crisis (e.g., emergency cold weather campaign). They are often willing to provide rapid funding to organizations that can respond quickly to emerging issues.

Now ask yourself: Is your Rescue Mission embracing these key trends and making the necessary changes to start adopting them? If the answer is no, it’s critically important to begin focusing on them now.

By adapting your middle and major donor fundraising strategies, you can help ensure your organization sees long-term revenue growth and stronger donor loyalty moving forward.

I would love to talk with you about these trends and share practical, proven strategies to help your Rescue Mission strengthen middle and major donor engagement – and confidently plan for the future.