Understanding What Motivates Charitable Giving

When it comes to giving, we all have different reasons, thoughts, feelings, and motivations for supporting the charities we choose. Knowing your own motivation is important, but understanding what inspires others can be powerful. While we might not know every reason, simply having a heart-to-heart conversation can help us understand more completely what drives these decisions.

I like to group individual giving motivations into three main categories, though there are certainly other factors at play:

• Belief in the Mission: The donor has a deep love or conviction about a charity’s programs and services. They may have first-hand experience and are fully aligned with the organization’s goals.
• Meaningful Connections: Giving is often sparked by a friend, relative, or board member. The gift is made in support of those relationships, or to honor a loved one who was helped by the organization.
• Tax Benefits: An interested party (for whom the mission still matters) may seek a tax advantage for year-end giving. Taxes are rarely the only reason for a gift, but they can certainly play a role.

It’s helpful to gain perspective and consider what truly fuels our own charitable decisions. Let’s dive into these three motivators.

1. The Power of Belief in Mission

Early in my career, I was focused on using data to understand why people give. I looked at spreadsheets and data points, but my boss at the time gave me better advice: “Why don’t you call them and have a heart-to-heart conversation, or better yet, go see them?”

Most people, once they are comfortable in a trusting relationship with us, will talk about their beliefs and desires when it comes to giving. At CICOA, we have many donors whose support comes from a core belief in our mission. They want to support making that mission come to life!

As St. Jude Children’s Research Hospital points out, we are often motivated to give because:

• It feels good to help others. Giving can make us feel better about ourselves and our role in the world.
• It strengthens community. Helping others around us is part of being human and builds a stronger society.
• You’re making an impact. Families and communities directly benefit from the change you create.

The point is, many of our donors at CICOA give because of these reasons, and it is all deeply tied to our essential mission.

2. Connections that Matter

In some cases, a charity is chosen because of a family member or friend who is connected to the organization. Perhaps a donor wants to honor a loved one who was helped by a specific service. It would be very unusual for someone to give a major gift without some kind of connection to the organization. It truly is rare for someone with resources to give “just to give.”

This is why CICOA always stresses to our staff and board members the importance of reaching out and sharing our story. We want people to know that CICOA depends on charitable giving to meet many needs that would otherwise go unmet for the older adults, caregivers, and people with disabilities we serve.

Research shows that donors give when they align with an organization’s values, have a high degree of trust, and can see a tangible aspect of the work being done. When nonprofits are viewed as a source of solutions, it often drives a donor’s decision to support them.

3. Taxes and Charitable Giving

Bill Stancykiewicz, a Senior Assistant Dean at the Indiana University Lilly Family School of Philanthropy, notes that “Taxes rarely, if ever are the first and only reason why people donate.” While that’s true, he goes on to say, “That said, taxes do matter.”

New federal tax policies, most of which take effect in 2026, can certainly play a strategic role in year-end giving considerations. This is especially true now, making 2025 a critical year for tax planning.

Here are three key changes and considerations:

• A New Tax Benefit for Most Americans: Starting in 2026, those who take the standard deduction (non-itemizers) will be able to claim a Universal Charitable Deduction—up to $1,000 for individuals and $2,000 for married couples filing jointly—for cash gifts to public charities. This is a new incentive for almost all donors!
• The New “Floor” for Itemizers: For donors who itemize, a new rule starting in 2026 states that your charitable contributions are deductible only to the extent they exceed 0.5% of your Adjusted Gross Income (AGI). This means the first 0.5% of your giving may not be deductible, encouraging strategies like “bunching” multiple years of donations into 2025.
• The Deduction Value Cap for High Earners: For the highest-income donors who itemize, a new rule takes effect in 2026: those in the top 37% tax bracket will only be able to calculate the value of their charitable deduction at the 35% tax bracket rate. This makes making large, planned gifts in 2025 particularly strategic.

While this topic is complex, understanding how taxes intersect with philanthropy can provide an additional reason to consider making your charitable donations before the end of the year.

Disclaimer: CICOA is not providing tax, legal or financial advice. The information presented here is for general educational purposes only and should not be relied upon as advice specific to your situation. Please consult with your own qualified tax advisor or financial professional to determine how these laws may impact your personal giving decisions.

Your Motivation Matters to CICOA

Why does all of this matter for CICOA? I learned long ago that the key is helping the donor understand how their charitable giving can maximize as many benefits as possible. We have urgent needs at CICOA, and you might consider how you can help, based on what motivates you most:

1. Help Us Close a Funding Gap: Every year, we face a crucial funding gap that puts CICOA’s vital programs at risk. Your year-end gift can help us bridge this gap and maintain our essential services without interruption.
2. Support New Initiatives: We are working on expanding our services into new areas that will require private funding to get off the ground. Your thoughtful gift could have a significant impact as we seek to expand our services and reach.
3. Provide Stability: Charities like CICOA depend on year-end giving! We simply cannot make it without donations. Government funding has shortfalls, limits our ability to do more, and as we’ve seen, can be unexpectedly cut. Our long-term desire is to become less dependent on government funding, but we can only do this with your help.

Whatever your main motivators in giving are, I trust that you will consider supporting CICOA before the end of the year. I cannot stress enough how important your gifts are as we finish out 2025. Will you help us? Thank you for supporting CICOA! We could not do it without you!

Steve Gerber

Steve Gerber brings experience in pastoral ministry, nonprofit management and fundraising team leadership to his role as CICOA’s chief development officer. Steve is responsible for the agency’s overall fundraising strategy, leading annual campaigns, major gifts, planned giving, grants and special events.

He holds designations for Certified Fund Raising Executive (CFRE) and Chartered Advisor in Philanthropy^® (CAP^®), and the executive certificate in religious fundraising. Steve earned a bachelor’s degree from Tennessee Temple University, a master’s degree from Grace Theological Seminary and a master’s in business administration from the University of Phoenix.