Most Nonprofits Miss Engaging With This Key Donor Demographic–Is Yours Keeping Up?

At The Curtis Group, we’re committed to sharing timely, research-driven insights from trusted leaders across the philanthropic sector. As fellow members of The Giving Institute, we are pleased to feature this guest article from Ali Iqbal, President of TIAA Kaspick, a national leader in planned giving and long-term donor strategy.

Middle donors are an increasingly influential—and often overlooked—segment of the giving landscape. Ali’s perspective offers a clear, practical look at how organizations can engage these loyal supporters more intentionally, especially through accessible planned giving pathways.

We hope you find these insights both grounding and catalytic as you plan for the year ahead.

Closing the “Missing Middle” Gap

Giving data tells a compelling story: while overall giving dollars climb, individual donor participation has declined. According to the Fundraising Effectiveness Project, the number of U.S. donors dropped by 4.5% in 2024, even as overall giving edged upward. The share of total giving generated by individual donors has fallen by ten points in the last two decades, from nearly 75% in 2006 to about 66% in 2024. Foundations and donor-advised funds are gaining ground and picking up the slack in overall giving, but donor retention remains an important concern for many nonprofits.

Who Are Middle Donors?

Middle donors can be defined by giving—often $5,000–$50,000 annually—but what matters more is their mindset. These are values-driven individuals: loyal, thoughtful, and at a life stage when legacy and impact are increasingly important. They might have appreciated assets instead of extra cash, and often weigh their desire for security with a passion for philanthropy.

The timing couldn’t be better. Every day, over 11,000 Americans turn 65—the peak age of retirement and when most people establish life income gifts. This demographic wave represents an extraordinary opportunity. Chances are a significant portion of your donor base fits this profile right now. What sets them apart isn’t just resources—it’s a readiness for deeper partnership.

According to a 2024 TIAA Kaspick survey, nearly half of middle donors expressed interest in planned gifts with life income benefits. They are searching for meaningful ways to maximize impact, but too often lack targeted outreach.

Unlock Powerful Planned Giving Pathways

Meeting middle donors where they are means demystifying planned giving—it’s not just for the wealthy. Adopting a solution-based mindset is essential because these giving vehicles can help donors resolve specific financial concerns, from generating retirement income to managing tax liability or dealing with appreciated assets.

Some of the most effective, accessible approaches are well suited to this group:

• Charitable Gift Annuities (CGAs): Provide reliable, predictable income—appealing for donors transitioning into retirement. CGAs offer immediate tax savings and reinforce lifelong ties to your mission.

• Charitable Remainder Trusts (CRTs): Allow donors with assets like stocks or real estate to avoid upfront capital gains tax, receive income, and support your cause with a future gift.

• Gifts of Securities or Non-Cash Assets: Many donors don’t realize they can make a big impact without using cash. Gifts of appreciated securities provide valuable tax efficiency; a simple explainer or webinar on this topic can open new doors.

• Bequests and Legacy Gifts: Though they represented just 8% of total giving in 2024, bequests are a powerful and straightforward way for mid-level donors to demonstrate lasting commitment.

• Blended Gifts: By combining an immediate gift with a bequest intention or CGA, you empower donors to create impact today and tomorrow. Blended gifts are often attractive to mid-level supporters thinking strategically about their giving.

Transforming Interest into Impact

The leap from annual giving to legacy commitment doesn’t require high-cost cultivation. It’s about being intentional—recognizing middle donors’ distinct motivations and offering them relevant pathways. Here are some tips for cultivating legacy giving with your donors:

• Segment and Analyze: Identify middle donors by giving history, age, asset profile, and engagement. If you haven’t mapped this group, start now.

• Personalize Communications: Use messages that reflect life stage and values. Middle donors appreciate being treated as partners, not prospects.

• Educate and Empower: Host “giving smarter” sessions focused on learning—not solicitation. Webinars, small group briefings, or targeted e-newsletters can make planned giving tangible and accessible.

• Celebrate Loyalty: Acknowledge donors’ consistency and impact, and not just their gift size. Thank-you calls or personal notes make all the difference.

Seize the Moment: The Future Is Now

When planned giving is woven into your middle donor strategy, you can expand your revenue opportunities and build a more diversified funding base. Donors who start with a CGA or CRT often deepen their commitment, boosting both lifetime value and long-term resilience (even as economic uncertainty persists). Research shows middle donors are among the most loyal and often are critical in sustaining organizations through challenging times.

With thoughtful strategy and genuine engagement, you can elevate these devoted supporters from loyal friends to legacy makers, fortifying your organization for the years ahead. Middle donors are not only filling the gap in today’s giving—they’re securing the future of philanthropy for generations to come.

About the Author

Ali Iqbal is responsible for developing and overseeing the execution of TIAA Kaspick’s strategy. He has served in several management roles at TIAA, including leading product management and strategy for education savings, health savings, and life insurance. He joined TIAA in 2015 as head of finance for the office of business effectiveness before being named head of finance for the TIAA Financial Services Product organization. Prior to joining TIAA, Mr. Iqbal held a variety of roles with UBS Financial Services in both London and New Jersey. He received a B.Sc. in Economics and Accountancy from City University, London, and is an Associate Chartered Management Accountant.

Disclosure statements: TIAA Kaspick, LLC, a registered investment adviser and provider of advisory services. TIAA Kaspick does not provide legal or tax advice. TIAA Kaspick provides tax preparation services under the terms of each client’s gift administration agreement. This publication is not intended to be used and cannot be used (i) for the purpose of avoiding tax-related penalties, or (ii) to promote, market, or recommend to another party any transaction or matter addressed. (IRS Circular 230 Notice). While all information presented here has been carefully reviewed, the accuracy of third-party data or research cannot be guaranteed. These views may change in response to changing economic and market conditions. Past performance is not indicative of future results. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. The information and data contained in this publication is not intended to provide personalized investment advice or gift planning recommendations. Certain products and services may not be available to all entities or persons.

Because the payments from a charitable gift annuity are fixed, inflation will erode the purchasing power of those payments over time.