Key Term

What is Donor?

Definition

A donor is an individual, organization, or entity that voluntarily gives money, property, or other assets to support charitable causes, nonprofit organizations, or philanthropic initiatives. Donors can make one-time contributions or establish ongoing giving relationships with charitable organizations, and they may give during their lifetime or through estate planning arrangements.

Significance

Donors are the lifeblood of the charitable sector, providing essential financial resources that enable nonprofits to carry out their missions and create positive social impact. Understanding donor behavior, motivations, and preferences is crucial for charitable organizations to build sustainable funding streams and meaningful relationships. Donors also play a vital role in shaping charitable priorities through their giving decisions and can influence social change by directing resources to causes they deem important. Additionally, donors often receive tax benefits for their charitable contributions, which can be an important factor in financial and estate planning strategies.