Purpose: This study aims to comparatively analyze the trends in zakat, infaq, and sadaqah (ZIS) fundraising among major Islamic philanthropic organizations in East Java and to identify the factors influencing donors' preferences, particularly the reasons for not selecting LAZISMU as their preferred ZIS institution. Methodology/approach: A qualitative comparative research design was employed. Data were collected through interviews, Focus Group Discussions (FGDs), observations, and document analysis of fundraising and financial reports from five zakat institutions during 2020–2024. The data were analyzed using comparative thematic analysis with coding procedures and triangulation to ensure credibility. Findings: The findings reveal that LAZISMU demonstrated the most consistent and sustainable growth in ZIS fundraising, supported by its strong institutional governance, extensive Muhammadiyah network, and long-term relationship-based fundraising strategy. However, these strengths did not automatically make LAZISMU the primary choice among donors. Donor preferences were found to be influenced more by trust, transparency, digital service convenience, emotional engagement, compelling storytelling, and personalized communication than by financial performance alone. These findings indicate that institutional excellence must be complemented by effective donor engagement strategies. Practical implications: The study implies that zakat institutions, particularly LAZISMU, should adopt a donor-centric fundraising approach by strengthening public communication, optimizing digital fundraising platforms, enhancing storytelling, and intensifying personalized engagement to improve donor loyalty and ensure sustainable ZIS fundraising performance. Originality/value: This study contributes to the Islamic philanthropy literature by combining comparative fundraising performance with donor preference analysis across leading zakat institutions. It reveals that donor decisions are influenced more by relational and experiential factors than by financial performance alone, providing practical insights for developing donor-centered fundraising strategies.