The Different Types of Donors
Understanding the Different Types of Donors
Knowing the different types of donors in your organization is a powerful way to better understand who they are and improve your communication strategies and techniques.
Each donor is unique, with individual values and motivations that influence why they choose to support your organization. Because of this, engaging donors effectively requires different approaches. Below are the primary types of donors found in nonprofit organizations and how they typically engage.
Prospects
Prospects are potential donors who have not yet made a contribution. These individuals or organizations are considered likely supporters based on interest, alignment, or prior engagement.
Common ways to engage prospects include:
Sending newsletters and mailings
Including them in annual appeals
Inviting them to events
Over time, thoughtful outreach can convert prospects into active donors. Asking the right questions early can help guide engagement—here are some questions to ask donors to start meaningful conversations.
Foundations
Private foundations set aside funds specifically for charitable giving. Because they are tax-exempt under IRS regulations, they are required to distribute a portion of their assets to qualified nonprofits.
Foundations typically:
Fund mission-driven programs
Support initiatives with measurable impact
Prioritize long-term organizational goals
Understanding a foundation’s priorities is essential when seeking funding.
Corporate Donors
Corporate donors include businesses that make large donations as part of their philanthropic or marketing strategies.
These donors often:
Expect brand visibility or recognition
Value publicity before, during, and after events
Align giving with corporate values and goals
When developing relationships with corporate donors:
Clearly communicate how your mission aligns with their values
Understand the company’s fiscal year
Create targeted corporate proposals or mailings
Corporations should be considered both current donors and long-term prospects.
Individual Donors
Individual donors give directly to your organization and often make up the largest percentage of total contributions.
Key characteristics include:
Smaller, recurring donations
Strong responses to events and personal outreach
Interest in membership or ongoing involvement
These donors may give because of a positive experience, a direct mail appeal, or a personal connection to your mission. Regardless of motivation, individual donors form the backbone of many nonprofit organizations.
Major Donors
Major donors typically contribute large sums and often require years of relationship-building and trust.
Common traits include:
Annual or campaign-specific giving
Interest in transparency and impact reporting
Personal connections to leadership or board members
Best practices for engaging major donors:
Keep them informed about how their donations are used
Assign them to a board member or senior leader
Educate board members on donor stewardship
Many major donors are introduced through board relationships, making it essential to train board members on effective stewardship. You can learn more in this guide to creating a donor stewardship plan.
Bringing It All Together
If you’re running a nonprofit, you’ll need support from all types of donations and donors highlighted above. Understanding how each group gives—and why—allows you to tailor your approach, strengthen relationships, and build a more sustainable organization.