How Donors Define Impact: What Nonprofits Need to Know

Donors talk a lot about impact. They use the term in meetings, in giving strategies, and in conversations with financial advisors. But what do they actually mean when they say it? More importantly, what do they expect from your organization when they give?

This question came into sharp focus during a recent episode of the Giving With Impact podcast from Stanford Social Innovation Review. Fred Kaynor, Managing Director at DAFGiving360, offered a practical look into how donor-advised fund (DAF) holders think about their charitable contributions. His comments highlight a growing expectation: impact should be measurable, strategic, and aligned with the donor’s values.

If your organization isn’t aligning its communication with this definition, you may be missing opportunities to strengthen donor relationships and secure lasting support.

Strategy Over Sentiment

Fred described how today’s donors are applying the same thoughtful, deliberate mindset to their philanthropy that they bring to personal and professional decisions. It’s not about responding emotionally or on impulse. They are considering the timing of gifts, the structure of their giving vehicles, the tax implications, and how to direct funds in a way that maximizes their goals.

He explained it like this: “Impact to them means taking the most strategic and thoughtful approach to how they give, what they give, when they give, and where.”

This is more than a checklist. It signals a fundamental shift in expectations. Donors want to contribute to organizations that reflect their values and offer clear evidence that their dollars are making a difference. They’re investing in change. They expect nonprofits to approach their work with a similar level of intention and accountability.

Maximum Impact Means Aligned Priorities

Fred shared that donors want their charitable investments to work as hard while they sit in a donor-advised fund as they do after they’ve been granted. Many donors choose investment strategies within their DAFs that match their broader philanthropic goals. When it’s time to distribute funds, they look for nonprofit partners who can help them advance their personal mission.

This point matters. It means donors aren’t just funding a cause. They’re looking for organizations that reflect their purpose, their values, and their view of what effective change looks like.

That’s where many nonprofits fall short. They lead with emotional stories or program descriptions but fail to connect the work to a larger set of results. Donors want to see outcomes that align with the issues they care most about—whether that’s increasing housing stability, improving education access, or reducing food insecurity.

If your team doesn’t understand how a donor defines success, you can’t demonstrate how your work contributes to it.

Trust and Flexibility Come With Higher Standards

Fred also pointed out that more than 70 percent of grants through DAFGiving360 were made without restrictions. Donors are giving organizations the flexibility to use the money where it’s most needed. But this flexibility isn’t unconditional.

Nonprofits are expected to show what they did with that support, how it advanced their mission, and what outcomes resulted. Unrestricted support can only be sustained if donors see progress. That doesn’t mean you need randomized control trials or complex statistical models. But it does mean you need to measure what matters and communicate your results clearly.

Organizations that meet this expectation often enjoy more trust, deeper relationships, and higher levels of recurring support.

Outcomes Over Activities

Fred’s comments reinforce a trend we see across philanthropy: donors want to understand what changed as a result of your work. Not how many people attended an event, not how many meals were served—but how lives improved.

As Kimberly Pfeifer from Oxfam said in the same podcast episode: “Impact is a positive change in behavior of an actor or a group, or a change in the reality of an actor or group brought about by human effort.”

That’s a high bar, and it requires more than reporting on outputs. It requires evidence of outcomes.

Are people more financially stable? Are youth improving academic performance? Are families experiencing greater housing security? These are the questions your donors are asking—and they expect thoughtful, data-backed answers.

How to Respond as a Nonprofit Leader

This shift in donor expectations may feel overwhelming, especially if your organization is still relying on spreadsheets, anecdotes, and high-level program summaries. But there are practical steps you can take.

Start by having open conversations with your donors about how they define success. Don’t guess. Ask. Then reflect on whether your current reporting and communications match those expectations.

Next, look closely at how your organization measures impact. Are you collecting the right data? Are you capturing the outcomes your programs are designed to achieve? Can you clearly describe the connection between your work and the results you aim to create?

Finally, assess your ability to communicate those outcomes in a way that makes sense to donors. A long annual report or static dashboard is not enough. You need to be able to share timely, relevant updates that show progress and invite engagement.

Data Without Context Doesn’t Build Trust

Of course, numbers alone don’t build relationships. Donors are looking for a full picture. They want to understand the “why” behind your approach, the “how” behind your operations, and the stories that bring your results to life.

This is where a platform like SureImpact can help. Our tools give you access to outcome-level data, but also help you tell a clearer, more compelling story. You can track what’s working, identify areas for improvement, and communicate your results in ways that are meaningful to donors.

You’re not just reporting data. You’re building confidence in your strategy.

Impact Starts With Clarity

If donors are being strategic in their giving, you need to be equally clear about your value. That begins with understanding how different donors define impact, what they care about most, and how your work helps them reach their goals.

It’s not about adjusting your mission to match donor interests. It’s about recognizing that alignment creates stronger relationships, better outcomes, and more sustainable support.

Donors like Fred and the others featured in the podcast are not outliers. They reflect a broader trend toward strategic, data-informed philanthropy. As this expectation becomes more common, organizations that can communicate impact clearly and credibly will have a major advantage.

SureImpact exists to support that work. We help nonprofits measure what matters, tell the right stories, and build trust with every report, every meeting, and every interaction.

Learn how we can help you connect your outcomes to the priorities of the donors who believe in your mission. Start here.