• NEWSLETTER
    • Schedule a Call
    The Charity CFO
    • Services
      • Bookkeeping
      • Accounting
      • Grant Management
      • Budgeting & Forecasting
      • Audit Assistance
      • System Migration & Tech Integration
      • Tax Preparation
    • Who We Serve
      • Human & Social Services
      • Education & Workforce Development
      • Youth & Community Development
      • Health & Human Services
      • Legal, Advocacy & Civil Rights
      • Religious & Faith-Based
      • Arts, Cultural & Environmental
      • Fundraising & Philanthropy
      • Animal Rights and Welfare
    • About
      • Our Team
      • Our Process
    • Resources
      • Blog
      • Podcast
      • Testimonials
      • Newsletter
    • Careers
    • Menu Menu

    Why Understanding Donor Psychology Matters More Than Ever

    If your fundraising feels harder than it used to, you are not imagining it. Donors today face more digital noise, more competition for their attention, and more emotional overwhelm than any other moment in history. And yet, people are still generous. The challenge for nonprofit leaders is not convincing people to care. It is learning how the brain works so your message resonates in a world full of distractions.

    On a recent episode of A Modern Nonprofit Podcast, Tosha sat down with fundraising expert and AFP Master Trainer Cherian Koshy to explore the neuroscience and behavioral psychology behind generosity. What he shared can transform how nonprofits build stronger donor engagement and retention.

    Giving Is Not Logical. It Is Biological.

    Most nonprofit leaders talk about giving as an emotional decision. Cherian takes it one step further. It is not only emotional. It is biological.

    When someone gives, the brain releases dopamine, oxytocin, and endorphins. These are the same reward chemicals connected to joy, connection, and meaningful experiences. These reactions appear even in pre linguistic babies, long before cultural, social, or economic influences exist.

    This means donors are not making decisions based on spreadsheets, logic, or carefully crafted pie charts. They give when they feel understood, connected, and emotionally safe.

    For nonprofit leaders, this should shift how you think about donor relationships. Giving is not a transaction. It is a relationship regulator. Donors stay loyal when your organization consistently proves it can be trusted.

    Donor Fatigue Is Not About Money. It Is About Meaning.

    One of the most powerful insights from this episode is the need to redefine donor fatigue.

    Too many leaders assume donors stop giving because they ran out of money. But Cherian explains that donor fatigue happens when the emotional narrative fades.

    People remain generous. They continue spending, often in big ways. But donors stop giving when they cannot see where their gift fits into the next chapter of your story. When updates feel stagnant, repetitive, or overly transactional, donors drift.

    What keeps them engaged?

    • The next step in the journey
    • The next level of impact
    • The next person whose story reflects their values

    Retention does not come from more appreciation events or branded swag. It comes from reinforcing an emotional connection over time.

    Identity Is the Hidden Force Behind Donor Loyalty

    Here is a truth that is uncomfortable for many nonprofit professionals. Donors do not give to support you. Donors give to confirm who they are.

    Generous people see themselves a certain way. They may identify as a helper of kids, a champion for justice, a supporter of healthcare heroes, or an advocate for the arts. Your job is to show them how their gift reinforces that identity.

    Identity drives long term giving more than wealth, strategy, or even impact reports. But it only works if your organization is consistent, transparent, and trustworthy. Donors need evidence that your mission aligns with their internal values.

    This is where financial transparency, predictable communication, and clear impact reporting matter more than most leaders realize.

    Cutting Through Digital Fatigue With Brain Based Messaging

    With 150 emails and 300 feet of social media scrolling each day, your donor’s brain is forced to filter aggressively. Cherian shares two simple truths:

    Predictable messages get ignored.
    Emotionally meaningful messages get remembered.

    To stand out, nonprofits can use the three S words:

    • Surprise. Something different enough to interrupt the pattern
    • Specificity. A concrete detail that engages the brain
    • Salience. Clarity on why this message matters today

    Most appeals fall flat because they sound like every other appeal in circulation. When your message blends into the digital landscape, the brain files it under ignore.

    Balancing Urgency and Empathy During Uncertain Times

    We live in a moment filled with economic uncertainty, burnout, and emotional fatigue. Many leaders fear that asking now will seem insensitive or that their mission is not as urgent as others.

    But avoiding urgency completely creates another challenge. Donors may start to perceive your organization as unfocused or directionless.

    The ethical balance is clear:

    Urgency grounded in reality. Here is the situation and here is why it matters.
    Empathy grounded in humanity. We understand what you are experiencing.
    Transparency grounded in stewardship. Here is exactly what we will do with your gift.

    When leaders find this balance, they build trust and generosity follows.

    The Bottom Line

    Donor behavior is not random. It is predictable, human, and deeply rooted in brain science. When nonprofits learn to connect with donors on an emotional and identity driven level while cutting through noise with clarity and resonance, their fundraising strengthens in powerful ways.

    This episode is essential listening for any team that wants to build donor relationships that last.

    Follow Cherian Koshy Online

    🌐 Website: https://www.cheriankoshy.com

    💼 LinkedIn: https://www.linkedin.com/in/cheriankoshy/

    📘Book: https://neurogivingbook.com/

    Follow Us Online

    🌐 Website: ⁠⁠www.thecharitycfo.com⁠⁠

    📸 Instagram: @thecharitycfo

    📘 Facebook:⁠⁠ /thecharitycfo⁠⁠

    💼 LinkedIn: ⁠⁠⁠ / the-charity-cfo⁠⁠  ⁠

    🎵 TikTok: @thecharitycfo

    Join our newsletter: ⁠https://go.thecharitycfo.com/l/995872/2025-02-24/6ldn1

    Download The Charity CFO Financial Blueprint: https://go.thecharitycfo.com/financial-blueprint 

    Resources Mentioned:

    Book: Your Money Has Feelings by Shannon Ryan

    Check Out These Blogs Next

    Nonprofit Communications: Navigating Donor Conversations

    The Psychology of Fundraising: Why Do Donors Give?

    Need more than a CFO? Our bookkeeping services offer additional support, so you get full-spectrum financial leadership, all in one place.

    Get the Details

    Share This Post

    • Share on Facebook
    • Share on X
    • Share on WhatsApp
    • Share on Pinterest
    • Share on LinkedIn
    • Share on Tumblr
    • Share on Vk
    • Share on Reddit
    • Share by Mail

    More Like This

    nonprofit-strategic-planning-leadership-meeting

    Why Traditional Strategic Plans Fail Nonprofits and What to Do Instead

    trust-during-disruption-nonprofit-leaders

    Trust in Times of Change: How Nonprofit Leaders Can Navigate Disruption Without Losing Their People

    How to Build a Grant Strategy That Actually Works

    Why Your Fundraising Strategy Isn’t Working (and How to Fix It)

    Blog Image Jg

    Why It’s So Hard to Trust Marketing Numbers (and What Nonprofits Can Do About It)

    Andreaortega

    Scaling Nonprofits Through Systems, Not Stress

    What Every New Nonprofit CEO Should Ask About the Finances (Before It’s Too Late)

    Nonprofit Networking That Works: How to Prepare, Connect, and Follow Up for Real Results

    The Real Reason Nonprofit Budgets Fail—and How To Fix It

    The Real Reason Nonprofit Budgets Fail—And How to Fix It

    Previous Previous Previous Next Next Next
    Popular
    • What is Financial Oversight?
      Nonprofit Accounting Tips, Tools, & Tricks Your Organization...January 22, 2020 - 4:23 pm
    • nonprofit fundraising strategies
      Do Nonprofits Pay Taxes? This is What You Should KnowJanuary 22, 2020 - 4:31 pm
    • The Charity: 6 Common Tax Mistakes that Non-Profits Mak...January 22, 2020 - 4:55 pm
    • We’re Hiring!January 29, 2020 - 9:31 pm

    Categories

    • Accounting
    • Audits
    • CFO Responsibilities
    • CharityCFO
    • COVID-19 Response
    • Financial Leadership
    • Financial Maturity
    • Financial Operations
    • Fundraising
    • Grants
    • Investment
    • Leadership
    • Leadership Strategy
    • Miscellaneous
    • Nonprofit
    • Nonprofit Financial Reporting
    • Operations
    • Payroll
    • Reporting
    • Revenue Strategies
    • Strategic Leadership
    • Taxes
    • Team Contribution
    • Team News
    • Trending
    • Uncategorized
    Left Aligned Cfo Logo White

    Who We Are

    About Us

    Our Team

    Testimonials

    Careers

    Terms and Conditions

    How We Help

    Bookkeeping

    Accounting

    Grant Management

    Budgeting & Forecasting

    Audit Assistance

    System Migration & Tech Integration

    Tax Preparation

    Get in Touch

    1310 Papin Street, Suite 300

    St. Louis, MO 63103

    (314) 390-0220

    [email protected]

    Website by Abstrakt Marketing Group ©
      • Sitemap
      • Privacy Policy
      Link to: What Are the Benefits of Donating to a 501(c)(3)? Link to: What Are the Benefits of Donating to a 501(c)(3)? What Are the Benefits of Donating to a 501(c)(3)?Two Workers Taxes Link to: How to Prepare for a Nonprofit Audit Link to: How to Prepare for a Nonprofit Audit Financial AuditHow to Prepare for a Nonprofit Audit
      Scroll to top Scroll to top Scroll to top

      This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

      AcceptLearn more

      Cookie and Privacy Settings



      How we use cookies

      We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

      Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

      Essential Website Cookies

      These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

      Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

      We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

      We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

      Other external services

      We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

      Google Webfont Settings:

      Google Map Settings:

      Google reCaptcha Settings:

      Vimeo and Youtube video embeds:

      Accept settingsHide notification only
      X

      Help Center

      Running a Nonprofit Is Hard. We’re Here to Help.

      Receive expert tips, financial guidance, and real-world advice—straight delivered to your inbox.

      Subscribe
      Discover The Charity CFO Financial Blueprint: Tips from The Best Nonprofit Organizations
      Download Our Playbook