Obstacles To Charitable Giving: The Donor Perspective

In this episode of the First Day Podcast, host Bill Stanczykiewicz, Ed.D., is joined by Betsy Erickson, Head of Family and Individual Services at Arabella Advisors, to dissect the top obstacles donors face when it comes to charitable giving. Backed by a collaborative study from the Gates Foundation, Arabella Advisors, and others, the conversation dives into the psychological and logistical hurdles that deter even the most well-intentioned philanthropists. These include the paradox of too many choices, lack of urgency, and fear of public scrutiny—factors that reveal the complexity of modern giving. As Betsy puts it, "Donors are more connected to societal problems than ever, yet often feel paralyzed by the enormity of these issues." The study identified ten key barriers to charitable giving, ranging from practical challenges—like an overwhelming number of nonprofit options and tedious administrative tasks—to deeper psychological concerns, such as perfectionism, fear of failure, and societal polarization. Notably, a lack of trust in nonprofit organizations also emerged as a significant hurdle, with donors often fixating on horror stories of misuse rather than success stories. Betsy highlights the behavioral science behind these challenges, explaining how biases like the "availability heuristic" influence donor behavior, making it harder for them to navigate the philanthropic landscape with confidence. For fundraisers, the episode serves up a buffet of actionable insights. Betsy emphasizes the importance of building long-term, authentic relationships with donors, scaffolding their journey through education, and simplifying their decision-making process. Practical strategies include providing clear, concise communications, engaging peer donors to build trust, and pacing interactions to reduce the overwhelm many donors feel. By addressing donors’ barriers empathetically, fundraisers can transform daunting decisions into meaningful opportunities for impact. Closing the episode, Bill underscores the moral imperative of treating donors as human beings rather than transactional sources of funding. Betsy echoes this sentiment, urging fundraisers to foster motivation and provide context for donors, particularly in unfamiliar issue areas. The conversation is a rallying call for fundraisers to act as trusted advisors, equipping donors to navigate their philanthropic goals with purpose and confidence. For more resources, listeners are directed to the study, housed on the National Center for Family Philanthropy’s website, and to Achieving Excellence in Fundraising, now in its fifth edition.