Benefit Segmentation for Fund Raisers

Abstract

This study establishes the applicability of benefit segmentation to gift giving behavior in American philanthropy. Dimensions of the fundraising ‘product’ and resultant benefit segments are developed from a sample of donors across the continental United States. Five donor segments are presented that demonstrate face validity, predictive validity, and strategic practicality. Both donor and community-based socio-economic characteristics are important descriptors of differences between donor segments. Implications of these findings are discussed.