Why people donate has been a focus for both researchers and practitioners in NGOs. The motivation for donating and how well it can be addressed by an organization is crucial for fundraising success. The drive to give is as individual as the donors themselves—a complex interplay of personal values, emotional responses, and social behavior. However, donors can generally be divided into two fundamental groups. The Study by Karlan & Wood (2017) identifies these two motivations: those driven by rational altruism and those seeking the “Warm Glow” feeling.
Donation Motivation—Altruism: Rational Selflessness in Focus
Altruism refers to the selfless desire to help others. People who donate altruistically do so not to receive anything in return or for personal satisfaction but because they believe in the organization’s mission and are convinced that their donation will make a positive difference.
These donors are often more focused on the actual impact and social benefit of their donation. They tend to give higher amounts or commit to recurring donations to increase the impact. For NGOs, this means that this group should be addressed with clear and transparent information about the actual benefit of donations. Evidence of the effectiveness of the organization’s measures is particularly important here. Showing the direct impact that a donation has on the lives of beneficiaries or the cause will particularly motivate rational altruists to give.
The “Warm Glow” Feeling: The Joy of Giving
Another powerful motivation for donating is the “Warm Glow” feeling, also known as the “joy of giving”. People driven by this motivation donate because the act of giving itself brings them positive emotions. It’s less about the actual purpose or effectiveness of the donation and more about the personal sense of satisfaction that comes from the act of giving.
The Study by Karlan & Wood (2017), referenced in this work, found that this motivation is particularly strong among smaller donors. This group values being part of a positive movement and is often influenced by emotional appeals or direct stories of success and transformation.
For NGOs, this means that emotional incentives and inspiring stories about the impact of their work can be particularly effective in reaching donors who seek the “Warm Glow” feeling. It may be helpful to frame the donation process as a form of “reward”, offering immediate gratitude and recognition.
Altruism vs. Warm Glow: Different Incentives for Different Donor Groups
While altruistically motivated donors are more focused on rational considerations and the effectiveness of their donations, Warm Glow donors seek an emotional experience. This distinction in donation motivation is particularly important for NGOs to segment and tailor their fundraising strategies. Major donors may want to learn more about the long-term impact and success of projects, whereas smaller donors are often drawn in by emotional experiences such as thank-you videos or success stories.
Practical Tips
- For Mid- to Large-scale Donors: Highlight the effectiveness of your projects in your fundraising campaigns. Use data to show how donations are changing the lives of beneficiaries, and communicate clearly how every euro makes a difference. A strong foundation for such communication is an Impact Analysis that provides usable data.
- For Smaller Donors: Use emotional appeals and success stories to evoke the Warm Glow feeling. Simple, personal thank-you messages and the opportunity to be part of a larger movement can be particularly engaging for these donors. Emotional stories directly from projects, quotes from beneficiaries, and other personal, compelling insights into your work are key.
Incorporating Donation Motivation into Fundraising
People donate for different reasons, and understanding these motivations can help NGOs make their fundraising efforts more successful. Altruism and the Warm Glow feeling are two key drivers that cover both rational and emotional aspects of donation behavior. By aligning your messages and approaches with the specific needs of these donor groups, you can make your fundraising campaigns more effective and targeted.
