Donor Behavior

Characteristics of giving circles

• Collective contribution – Members contribute funds (monthly, annually, or per campaign)
• Democratic decision-making – Members vote or reach consensus on which nonprofits to support
• Community focus – Many circles prioritize local needs or specific causes
• Education and engagement – Members often learn together about community issues and philanthropy.

Significance

• Empowerment – Allow donors of modest means to achieve significant collective impact
• Engagement – Build strong communities of donors who are deeply invested in outcomes
• Diversity – Often founded by women, people of color, or younger donors, broadening philanthropy’s reach

Opportunities for nonprofits

• Giving circles may not provide mega-grants, but they often deliver passionate, long-term support.
• They can also be excellent sources of volunteers and advocates.
• Cultivating relationships with giving circles may lead to repeat grants as members build loyalty.

Examples

• Women’s giving circles focused on education or healthcare
• Neighborhood-based circles that pool donations to improve local parks, libraries, or shelters

For more, see Philanthropy Together, a nonprofit dedicated to strengthening giving circles.

Best practice

Track giving circles as donor groups. For example, DonorPerfect allows nonprofits to track their giving circles using flags and custom fields, recognizing them as both collective donors and individual contributors. This also makes stewardship easier, as fundraisers can personalize messaging to the group and the individual.

Types of giving patterns

1. Seasonal giving
   • Peaks around year-end holidays (November–December) and campaigns like Giving Tuesday
   • Religious or cultural traditions also shape giving rhythms
2. Recurring giving
   • Donors who give monthly or quarterly provide reliable revenue
   • Recurring giving often leads to higher lifetime value
3. Event-based giving
   • Donors may give primarily during galas, auctions, or peer-to-peer fundraisers
4. Cause-triggered giving
   • Giving spikes in response to disasters, crises, or urgent appeals
5. Matching gift behavior
   • Many donors increase giving when their employer offers a match, which nonprofits can track and encourage
6. Lifetime giving patterns
   • Younger donors may start with small, frequent gifts and grow into major donors or planned givers
   • Older donors may give larger, legacy-focused gifts later in life
   • Monitoring long-term donor loyalty helps nonprofits understand commitment levels and predict future giving

Significance

By analyzing giving patterns, nonprofits can forecast cash flow, design effective campaigns, and steward donors more thoughtfully.

Example

DonorPerfect’s reporting tools make it easy to identify giving patterns at both the individual and group level. For example:

• Trend analyses – Average donation size over time
• Retention reports – How long donors stay engaged
• Seasonality charts – Donation peaks by month or quarter

Best Practices

• Encourage recurring giving to smooth out seasonal peaks
• Use donor segmentation to tailor messages based on past patterns
• Celebrate anniversaries of first gifts or recurring milestones

Underlying these patterns are human motivations: generosity driven by empathy, belonging, and the desire to see tangible results. Recognizing these motivations helps nonprofits design appeals that resonate with supporters.

Stages of the funding cycle

1. Planning and priority setting – Foundations, corporations, and government agencies determine their focus areas for the year or multi-year cycle. They may issue Requests for Proposals (RFPs), invite Letters of Inquiry (LOIs), or publish funding priorities.
2. Application or proposal – Nonprofits apply for funding, often with detailed project proposals, budgets, and logic models.
3. Review and award – Donor institutions or committees evaluate proposals and select recipients.
4. Implementation – Nonprofits carry out the funded project, often with reporting requirements built in.
5. Evaluation and reporting – Grantees submit progress or final reports to demonstrate how funds were used and what impact was achieved.
6. Renewal or closeout – Based on performance, some funders may renew grants or encourage nonprofits to reapply.

Significance

For nonprofits, awareness of the funding cycle prevents last-minute scrambles. By anticipating deadlines and aligning proposals with funder priorities, organizations increase their odds of success.

Example

DonorPerfect can track grant deadlines, reporting requirements, and funding outcomes. Customized reminders ensure no opportunity slips through the cracks. Reports can also link grant funding directly to program impact, making renewal applications stronger.

Best practices

• Build a calendar of funder deadlines months in advance
• Align grant applications with strategic goals rather than chasing dollars
• Develop strong reporting systems to demonstrate outcomes and readiness for renewal