Summary of "Episode 188: How Can You Grow Midlevel Donors" – The Smart Communications Podcast

Released on June 11, 2025, by Big Duck, "The Smart Communications Podcast" is dedicated to empowering nonprofit leaders by enhancing their communication strategies to advance their missions. In Episode 188, titled "How Can You Grow Midlevel Donors," host Farrah engages in an insightful discussion with fundraising strategist Aliyah McKee to explore the pivotal role of midlevel donors in nonprofit sustainability and growth.

1. Introduction to the Episode

Farrah, the co-director and worker owner at Big Duck, opens the episode by introducing her guest, Aliyah McKee. Aliyah is a seasoned fundraising strategist, market research expert, and leadership coach with nearly two decades of experience leading transformative growth strategies for mission-driven organizations. The episode focuses on understanding and nurturing midlevel donors—those who contribute significantly but not enough to be classified as major donors.

Farrah (00:16): "In today's episode, we're going to ask the question, how can you grow midlevel donors?"

2. Defining Midlevel Donors

Aliyah McKee provides a comprehensive definition of midlevel donors, highlighting their financial contributions and organizational significance. She explains that midlevel donors typically contribute between $1,000 and $10,000 cumulatively over a 12-month period, though thresholds can vary based on organizational structures.

Aliyah McKee (02:19): "A midlevel donor is someone who gives a significant contribution to an organization—enough to stand out from grassroots or membership, but not quite enough to land in a major gift officer's portfolio."

Aliyah emphasizes the importance of defining donor levels that align with an organization’s specific donor base and structure, enabling personalized engagement at scale.

3. The Significance of Midlevel Donors

Aliyah shares insights from a pivotal study conducted in 2008 by her firm, SeaChange Strategies, which revealed that 1% of high net worth individuals were contributing 34% of total revenue. However, these donors were often neglected because they didn’t fit neatly into major donor categories or grassroots memberships.

Aliyah McKee (04:04): "They were in this no person's land and really being ignored. And so since then we've really focused on how we can engage these donors, how we can reorganize our organization so that these donors get stewarded appropriately because they represent a major opportunity."

This revelation underscored the untapped potential of midlevel donors, prompting a strategic focus on engaging and nurturing this segment.

4. Findings from the "Missing Across Vertical Study"

Farrah references the "Missing Across Vertical Study of Midlevel Donors" conducted by SeaChange Strategies, which surveyed over 6,000 midlevel donors across 36 nonprofit organizations. The study identified three distinct behavioral profiles among midlevel donors:

1. All Business Donors (41%)
2. Engagement Seekers (32%)
3. Hands-On Donors (27%)

a. All Business Donors

This group prefers a low-touch, transactional relationship with nonprofits. They tend to renew their gifts annually, often with minimal prompting, and prioritize organizational efficiency.

Aliyah McKee (04:49): "They are the oldest cohort in the sample."

Excessive stewardship may deter them, as they prefer their contributions to directly support programs rather than engagement activities.

b. Engagement Seekers

Engagement Seekers are highly interested in participating more deeply with the organization. They value virtual events, action opportunities, impact reports, and interactive content.

Aliyah McKee (06:03): "They want to feel connected and valued. And they're telling us that meaningful engagement is going to influence their long-term commitment."

This segment exhibits the greatest potential for deepened relationships and increased future contributions.

c. Hands-On Donors

Representing the most committed segment, Hands-On Donors are actively involved as volunteers, board members, or community ambassadors. They combine significant financial contributions with personal involvement.

Aliyah McKee (07:54): "Proximity and participation can be powerful drivers of generosity."

This group typically contributes the highest average gifts, nearing $20,000, and demonstrates a strong commitment through both time and financial support.

5. Strategies for Engaging Midlevel Donors

Aliyah discusses actionable strategies nonprofits can implement to effectively engage midlevel donors, drawing on real-world examples such as Earthjustice’s "Harry Potter Midlevel Sorting Hat" initiative.

Aliyah McKee (10:30): "They're trying to invite donors to raise their hand by responding to any one of these seven pieces as an engagement seeker or a hands-on donor."

Key Strategies Include:

• Segmentation: Distinguishing between different types of midlevel donors to tailor communication and stewardship efforts appropriately.

• Personalization at Scale: Creating multi-channel qualification series to identify donor preferences and engagement levels.

• Customized Stewardship: Providing targeted touchpoints such as thank-you calls, leadership updates, and tailored event invitations based on donor profiles.

For All Business Donors, maintaining a consistent yet low-frequency communication ensures they remain engaged without feeling overwhelmed.

6. Donor Retention and Upgrade Potential

The conversation delves into the loyalty and retention rates of midlevel donors, highlighting their stability compared to other donor categories.

Aliyah McKee (13:57): "Midlevel donors are incredibly loyal...multi-year retention rates of their midlevel donors above 60%. Some hit 70%."

However, Aliyah notes that the traditional view of midlevel donors as stepping stones to major giving is challenged by data showing only a small percentage plan to increase their donations significantly.

Aliyah McKee (16:15): "Only 10% of midlevel donors said that they plan to increase their donation and just 13% have ever given a gift of $10,000 or more."

Despite this, the legacy giving potential among midlevel donors is substantial, with over 30% having made or considering bequests. Aliyah identifies a prime age window (58-69) for targeted legacy engagement.

7. Recommendations for Nonprofits

In closing, Aliyah offers two critical recommendations for nonprofits aiming to grow their midlevel donor base:

1. Stop Under-Resourcing Midlevel Programs:

   • Ensure midlevel programs have dedicated staff, clear ownership, strategic planning, and proper budgeting.

   Aliyah McKee (17:10): "Midlevel donor programs cannot be an afterthought."

2. Start Tracking Retention and Lifetime Value:

   • Shift focus from short-term return on investment (ROI) to long-term metrics such as donor retention and lifetime value.

   Aliyah McKee (17:30): "The case for investment really becomes undeniable."

These strategies advocate for a sustainable, relationship-focused approach to fundraising that recognizes the enduring value of midlevel donors.

8. Concluding Remarks

Aliyah emphasizes the essence of fundraising as relationship building, urging nonprofits to invest in meaningful connections to rebuild donor trust and secure a resilient supporter base.

Aliyah McKee (18:44): "Fundraising is relationship building...we have to start building back trust with donors and securing a more resilient supporter base."

Farrah echoes this sentiment, underscoring the vital role of strategic communication in nurturing donor relationships.

Key Takeaways

• Midlevel Donors are Crucial: They represent a significant portion of revenue and demonstrate high loyalty and retention rates.

• Segmentation is Essential: Understanding donor profiles enables personalized and effective engagement strategies.

• Long-Term Focus Over Immediate ROI: Investing in the lifetime value of donors fosters sustainable growth and deeper relationships.

• Legacy Giving Potential: There is immense opportunity in cultivating midlevel donors for legacy contributions, particularly within specific age demographics.

For nonprofit leaders seeking to enhance their donor engagement strategies, this episode provides valuable insights and actionable recommendations to harness the full potential of midlevel donors.