Annual Fund Fundraising: What Works and Why

In this episode of The First Day from The Fundraising School, host Bill Stanczykiewicz, Ed.D. is joined once again by fundraising researcher and nonprofit rockstar Ruth Hansen, PhD, Associate Professor at the University of Wisconsin-Whitewater. Together, they dive into Ruth’s latest co-authored paper, “A Literature Review of Experimental Studies in Fundraising,” which combs through 187 academic studies to answer one burning question: what really works in annual fund fundraising? Spoiler alert, it’s not just your gut feeling. This episode is a masterclass in evidence-based philanthropy, breaking down complex research into practical nuggets fundraisers can use right now.

Ruth and Bill unpack some truly mind-bending findings, like the fact that donors respond more to percentages than numbers. Five out of ten (50%) feels more impactful than eight out of twenty (40%), even though the latter helps more people. Why? Our brains love shortcuts, and percentages are easier to grasp. They also wade into the murky waters of negative imagery; yes, sad puppy photos do boost one-time gifts, but could turn off donors long-term. This leads to a golden takeaway; fundraisers must balance emotional impact with long-term relationship building. A little “warm glow” goes a long way in keeping donors connected and inspired.

Speaking of warm glow, Ruth reminds us that smaller donors often give because it feels good, not just out of pure altruism, and that’s okay. In fact, appealing to that emotional satisfaction is a powerful way to start building those donor pipelines. The conversation also busts some long-standing myths around special events. Turns out, there’s science behind why folks give more when they’re surrounded by others: peer pressure, reputation, and that sweet social buzz all play a part. It’s not just networking; it’s neuroscience.

From social proof in direct mail to gender-matched testimonials, Dr. Hansen and her research offer a toolkit of small tweaks that lead to big results. At the heart of it all? Donors want to know they’re making a difference; regardless of income, background, or cause. Ruth sums it up perfectly: fundraisers aren’t just talking to people with wallets; they’re talking to people with values. So if you’re looking to make your annual fund stronger, smarter, and more donor-friendly, this episode is your evidence-based jam.