BASE ELEMENT 2 · THE DONATION EQUATION
Gratitude
Gratitude (noun): The state of being grateful: thankfulness. From the Latin “gratus,” meaning pleasing or thankful — the root of grace, grateful, and gratuity. (Merriam-Webster)
IN THE DONATION EQUATION
The real or perceived gain a donor receives or expects to receive when giving. This may include psychological, social, financial or tangible rewards.
Donors get something for giving.
Research by psychologist Patrick Hill and colleagues has shown that people with a sense of purpose in life tend to be happier and live longer. “Finding a direction for life can help you actually live longer,” Hill notes. Giving creates and reinforces that sense of purpose.
Tax policies can amplify giving through strategic advantages. Thoughtful tangible gifts — what we call gift premiums — can strengthen a donor’s connection to your cause. Social recognition reinforces commitment. Gratitude is a two-way street, and the most successful organizations understand that investing in genuine, abundant stewardship drives results.
Every organization we have worked with that boosted Gratitude through enhanced stewardship has seen increased results. Thanking donors isn’t secondary to fundraising — it’s a core part of what we do.
A socially-connected “warm glow” comes from giving.
Giving just feels good. Economist James Andreoni coined the term “warm glow giving” to describe the positive emotional satisfaction people experience from the act of giving itself. Experimental studies have confirmed this: when researchers gave participants the chance to donate, most still chose to give even when their donation wouldn’t increase the total — evidence that the act of giving itself provides value to the donor.
Thank donors immediately. Then, provide additional personal touches. Wrap up your gratitude with information about the impact of giving, helping donors see why their gifts matter.
Tax incentives matter, but mostly in the margins.
While tax benefits don’t create generosity — that motivation runs much deeper — they can significantly impact both the timing and amount of giving. Understanding tax-advantaged giving strategies and communicating them effectively to donors is an important part of maximizing support.
Gift premiums, hotly debated, are still an option.
The days of address labels and pens are done. Today’s great donor gifts allow a donor to show pride, or offer an experience. Consider things like branded tote bags made from sustainable materials, custom pins celebrating campaign milestones, mobile device stickers, unique keychains, or exclusive digital content access.
THE QUICK LIST
Ways to Boost Gratitude
- Thank donors immediately — get an immediate acknowledgment out, then follow up with deeper, personal thanks in different channels.
- For online giving, make sure your automated receipts include real Gratitude language.
- Hand sign thank you letters if you can, in a different ink color than the print. Put personal notes on letters to donors you know.
- Follow up your initial thank you with communications that show the impact of giving through storytelling and data.
- Offer thoughtful and unique gift premiums tied to your story and impact. Keep them modest in value. Never sell something you also give as a premium.
- Don’t stop at stuff. Use experiences, VIP access and donor engagement communities as a form of gratitude.
- Mention tax incentives and tax-advantaged giving strategies in your communications.
- Market the IRA qualified charitable distribution (QCD) to all donors who are 70½ or older — it’s greatly underutilized.
THE KEY POINT
The Key Point
Thanking donors matters. Showing abundant gratitude is crucial to your fundraising success. This can come from your thanking communications, things you offer to donors (tangible and intangible) and things like tax incentives. Your donor stewardship program is a key investment.
Broader Context: The idea of a psychological exchange in human relationships is pivotal in fields like sales, brand adoption, faith development, cause adoption, social responsibility, and sports psychology. The things we do that are social and involve an emotional exchange are generally done “bigger,” and are more sticky as a long-term behavior.