Are You Overlooking Your Mid-Level Donors?

Not every nonprofit has a staffer dedicated to cultivating its mid-level donors. Too often these donors aren’t treated any differently than annual donors who contribute a few hundred dollars.  Overlooking your mid-level donors could be a costly mistake as these donors are likely to remain loyal to your cause. 

Released earlier this month, “The Missing Middle: Part Four” from Sea Change Strategies, a strategic research and fundraising agency based in Tacoma, Maryland, is the fourth report in a series that began in 2014. For the latest installment, Sea Change Strategies’ research partner Edge Research, conducted an online survey in late 2023 of active mid-level donors from 36 organizations, including Christopher & Dana Reeve Foundation, Minnesota Zoo Foundation, National Audubon Society, The Trevor Project and Women’s Refugee Commission. 

For the study, a mid-level donor was typically defined as those who donated at least $1,000 but less than $10,000 to an organization. The average mid-level donor is a baby boomer, according to the report. When combined with the Silent Generation, these two older generations comprise 82% of mid-level donors. Almost 60% are women, nearly 90% white and about 64% have post-graduate degrees. 

Most of these donors (59%) give once a year, but 23% are monthly donors. Despite one-time annual gifts being the norm, more than half of mid-level donors have maintained their generosity for more than a decade. Though more than one-third declined to disclose their net worth, about one-third had a net worth between $1 million and $5 million.  

Here are five recommendations shared in a recent briefing of the research on the often neglected mid-level donor segment.

1. Future Mid-Level Donors Should Be Cultivated Now

Despite older donors representing the majority mid-level donors, it’s vital to begin cultivating your mid-level donors of tomorrow, per the report. Almost half (42%) of mid-level donors developed interest in the cause that remains most important to them when they were young adults, or between the ages of 20 and 39 — the ages of some of today’s Generation Z and millennial donors. 

“While most mid-level donors are older — we saw 82% are 60 and over — you’re running two programs,” Alia McKee, principal at Sea Change Strategies, said in a briefing on the report. “One [of those programs is] trying to attract young adults even if they haven’t yet aged into their prime mid-level giving years, so it adds a little bit of complexity to a mid-level program, but definitely something to keep in mind.”

Credit: “The Missing Middle: Part Four” by Sea Change Strategies

As it stands now, Generation X, millennials and Gen Z are all underrepresented in this research. Despite Gen X outnumbering baby boomers in the U.S., the former — born between 1965 and 1980 — only make up 13% of mid-level donors. Meanwhile, the millennials and Gen Z combine for 43% of the U.S. adult population, but comprise only 5% of mid-level donors. 

“In contrast to Gen Z and millennials, Gen X has actually built up the wealth,” Lisa Dropkin, principal at Edge Research, said. “Their net worth and the percentage of those Gen X mid-level givers who have a net worth in excess of $1 million is nearly the same as what we see for baby boomers, so the money is there.”

But don’t overlook investing in those younger generations too. McKee shared how a nonprofit created a young professional program, but after its return on investment did not pay off within two years, the organization ended the effort. Nonprofits should not expect ROI on this tactic that quickly, she said. 

“It may take a little while,” McKee said. “There’s patience involved here, but it’s really important as you future-proof your programs.”

2. Mid-Level Donors Likely Will Not Become Major Donors

Among mid-level donors, the study found 89% note they are very likely to give again in the next 12 months. 

“That number probably won’t translate exactly to 90% retention or 89% retention,” Mark Rovner, principal at Sea Change Strategies, said during the report’s briefing. “However, Alia and I have found in individual studies with organizations [that] retention among mid-level donors is almost always higher than donors below the mid-level.” 

In fact, 70% indicated they will likely give the same gift this year as they did last year, according to the report. Despite the high retention rates and many nonprofits viewing mid-level as a stop in the pipeline to major giving, this research showed that mid-level is the final destination for many donors. Only 13% have made a gift of $10,000 or more, according to the report. 

“We’re not arguing that they’re less valuable because they don’t appear ready to rise into major giving,” Rover said. “They are steadfast givers. They are generous givers, but they’re probably not going to become major donors with some happy exceptions.” 

3. Mid-Level Donors Might Be Prospects for Other Opportunities

Though major gifts are unlikely, mid-level donors could be prime targets for other types of giving, such as bequests, donor-advised funds (DAFs) and IRA distributions.. 

When it comes to planned gifts, 31% of mid-level donors indicated they have made a bequest while another 23% plan to do so. Research found donors typically begin their decision process in their mid-50s and finalize that decision by age 70. 

Those who do not have children or grandchildren are your prime prospects, with 57% already having bequests, 49% in the planning stages and 52% considering the option. About 78% of mid-level donors who have children or grandchildren are not likely to give a bequest.

“As we think about our mid-levels, Mark talked about they’re not ready to step up into major gifts,” Dropkin said in the report briefing. “Many of them are not going to step up into planned giving, but finding those mid-levels perhaps with no children/grandchildren is going to be more fruitful.”

Credit: “The Missing Middle: Part Four” by Sea Change Strategies

Meanwhile, 23% have a donor-advised fund (DAF) and tend to give double the highest mid-level gift. IRA distributions are also a prime example of where mid-level donors can further support your cause. 

“The oldest Gen Xers turn 59 this year,” Dropkin said. “And with 59 — and 59.5 specifically — you start to get access to those retirement funds and that reduced capital gains tax rate, and it’s very notable that they’re very underrepresented in the mid-level giving pie. And we need to be asking ourselves as the boomer generation heads into the years where it too will shrink, can we get Gen X to fill their shoes.”

4. Not All Mid-Level Donors Are Alike

Mid-level donors require customized approaches. Researchers developed three personas for this donor level.

First, all-business donors, who make up 41% of mid-level donors, want limited communication, like an annual appeal, tax receipt and annual report. 

“You just think of them as your set-it-and-forget-it group,” Pam Loeb, principal at Edge Research, said in the briefing for the report. “They’re happy to give annually. They’re already decided through the amount that they give. They’re loyal to the organization. But beyond that annual participation, they pretty much just want to be left alone.”  

On the contrary, you can move the needle with engagement seekers who are focused on impact and make up 32% of mid-level donors, Loeb said.

“They actually have more bandwidth and they have more interest in getting involved,” she said. “… and they’re the group that wants more recognition for their generosity.”

Finally, 27% of mid-level donors are hands-on, meaning they’re giving the largest gifts and could already be a volunteer, board member or fundraiser for your organization. 

“This audience is very involved with the organizations to which they make their largest gifts,” Loeb said.

5. Mid-Level Donors Rely on Your Website to Research Your Nonprofit

When it comes to researching an organization prior to giving, 78% of mid-level donors admitted to doing so. And the impact of your website may be underestimated, as the report found 39% of mid-level donors research an organization’s website before making a donation, compared to 5% who review its social media instead. 

“As the digital ecosystem has gotten more complicated with all the different socials out there and nonprofits are really investing to try to stay up to date with all of that diffusion, I think the website has become ignored as the primary open, welcome mat to your organization,” McKee said. “And [for] mid-level donors, the website is so much more important.” 

Credit: “The Missing Middle: Part Four” by Sea Change Strategies

McKee and Rovner suggest highlighting charity watchdog reviews and optimizing the giving process, particularly with guidance on how to donate via DAFs, bequests and IRAs. In addition, test your donation page with real people to pinpoint any difficulties in navigating your online donation form. 

“Find four people in their 60s who have some interest in the organization and watch them try to make a donation,” Rovner said. “And have them verbalize as they go step by step: Are they getting stuck? Do they know what they want to do? You’ll learn a lot.”