The Problem with Using Wealth Screens to Qualify Donors

Photo by Kenny Eliason on Unsplash

Wealth screening is a standard tool in the nonprofit world. You run a donor list through a database, and out pops a score telling you who’s rich enough to give big. It's fast, efficient, and makes your major gift officer feel like they’re doing something scientific.

But there’s a problem. A big one.

Wealth isn’t the same as generosity. And even more important, it’s not the same as feeling wealthy.

That’s the key insight behind the 2011 groundbreaking study by Pamala Wiepking and Beth Breeze titled “Feeling Poor, Acting Stingy.” Their research shows that how people perceive their financial situation is often more predictive of charitable giving than the number of zeroes in their portfolio. In other words, your prospect who just sold their tech company for $30 million? They may still feel like they "can’t afford it"—and act accordingly.

Why Wealth Screens Miss the Mark

The problem with wealth screens is psychological. They tell you who has money, but not who feels like they have money to spare.

In the study, individuals who exhibited strong feelings of “retention” (a cautious, tight mindset toward money) gave 31% less, regardless of their actual income. Those who felt “inadequate” about money, who believed they didn’t have enough or feared others thought they had more than they really did, gave 32% less.

Let that sink in: your top-of-the-list, high-net-worth prospect might be emotionally wired to hold on tight. And your modest-income monthly donor? They may feel a sense of enoughness that makes them remarkably generous.

And yet, many fundraisers are still qualifying leads based on ZIP codes and Zillow estimates. That’s not a strategy. That’s a spreadsheet fantasy.

The Income Inequality Trap

This all becomes even more urgent in the context of today’s expanding income inequality. Today, America is richer than ever, but wealth is flowing up, not out. The middle class is shrinking. The top 1% now owns more than the bottom 90% combined. And the psychological impact of that inequality? It’s not generosity. It’s anxiety.

Even the wealthy often don’t feel wealthy.

As one high-net-worth donor told researchers, “Wealthy? It’s $67 million and upwards as far as I’m concerned. $67 million is the point at which you don’t have to panic anymore.”

This isn’t greed. It’s a scarcity mindset baked into our culture. A deep uncertainty about the future, made worse by volatile markets, global crises, and the social comparison machines (a.k.a. smartphones) we all carry in our pockets.

UNC social psychologist Keith Payne’s research reinforces this idea that wealth is a relative perception. In his classic book “The Broken Ladder,” Payne shows that people assess their well-being and financial status not in absolute terms, but by comparing themselves to others around them. And those comparisons can make even objectively wealthy people feel like they’re falling behind. When we feel “lower” on the ladder, no matter which rung, we experience more stress, more mistrust, and, yes, more reluctance to give.

So when nonprofits lean harder into wealth screening, they’re actually leaning into a shrinking pool of donors who both have money and feel okay letting it go.

What Fundraisers Should Do Instead

We need to evolve. And fast.

Look beyond the numbers. A donor’s net worth doesn’t tell you if they feel safe enough to give. You need to understand their relationship with money. Have they just made a big purchase? Have they given elsewhere? Are they talking about their legacy?

Use empathy, not just analytics. Good fundraisers are part psychologist. Listen for cues. Are they worried about retirement? College tuitions? The state of the world? Those aren’t objections—they’re windows into their worldview.

Offer choices. When you give people options like monthly gifts, matched gifts, and bequests, you help them find a giving strategy that fits not just their finances, but also their emotional state.

Affirm identity. People give to feel like their best selves. Frame giving as an act of empowerment, not obligation. Tell them, “You are the kind of person who shows up for others,” and let them step into that role.

Don’t write off the “unqualified.” That donor you screened out because their home isn’t in the right neighborhood? They might be your next loyal monthly giver—or your next bequest.

The Bottom Line

Ask a social psychologist to predict someone’s behavior, and she will pause and begin with, “It depends.” Same thing here; it’s complicated.

Wealth screens will tell you who can write a big check. But they won’t tell you who will. Because giving isn’t a financial transaction, it’s a psychological one.

Beneath every charitable gift lies a feeling: one of trust, safety, identity, and impact. When you ignore that, you don’t just miss out on donations, you miss out on donors.

So sure, use your screening tools. But don’t stop there. Go deeper. Talk to people. Listen. Build relationships.

Because the best donors aren’t necessarily the richest ones. They’re the ones who feel rich enough to give.