Why Your Organization Should Embrace Smaller Donors in 2021

by Jan 18, 2021Blog, Campaigns, Cause Marketing, Fundraising, Fundraising Events, Resources, Uses

When it comes to fundraising, you probably know every little bit counts. Of course, large donors and supporters have a significant impact on your organization, but did you know that small donors can be a real powerhouse for you? Their impact has the ability to go beyond the donation and it welcomes younger generations of donors who may not have as much to give. For each small donation you receive, you’re getting an individual who is a potential lifetime supporter. This means they can transition to giving more, championing your cause, and even joining recurring donation programs.

In 2021, smaller gifts and donors are an important contributor to the sustainability and health of your organization. They give you the critical flow of income needed to provide your services to the community who likely still needs them more than ever. While it may seem like low hanging fruit and less important than finding larger donors, never leave these small donors on the table. Lower donations diversify your fundraising strategy and expand your network. This way you aren’t relying on one source of revenue to provide your services rather you are mitigating risk if this one falls through.

Giving By Individuals Has Fluctuated


Giving by individuals has fluctuated in recent years. For many years individual giving was on the decline, but through the pandemic, many have given more than they have recently in order to help with increased demand. In fact, according to a report by the Fundraising Effectiveness Project, charitable giving increased 7.5% in just the first half of 2020. While giving was up in 2020, the overall fluctuations aren’t a cause for panic, but they should open your eyes to why a much larger pool of donors is needed. With all of the tools available to you that make donating easy for your existing and new supporters, casting out a wider net with smaller donation amounts can make a big difference when it’s truly needed.

Don’t Forget About Younger Donors



Gen Z is the latest generation of up and coming donors, and they are the most socially conscious generation so far. They are willing to donate and volunteer on a regular basis, but as you can expect, they aren’t in a place of financial stability where they can make significant donations. Still, according to Zelle, Gen Z had the second-highest giving rate, 66% since the pandemic began just behind millennials. They love to make smaller contributions, give their time, and take part in peer-to-peer fundraising campaigns where they can get others involved in a cause they are passionate about. Peer-to-peer fundraising campaigns are particularly impactful, especially with more tech-savvy generations. Be sure you’re not alienating younger donors and their smaller contributions. Treat them just as you would with a significant donor and realize they may be the perfect fit for a recurring donation program.

Turning a One-Time Donation Into Recurring Donations


As a Classy report found, 19% of return donors re-engage with nonprofits within 3 months of making their initial donor. This means there is a significant chance to turn first-time donors into recurring donors much sooner than the one year mark of their donation. This is a great way to utilize recurring gift programs because a recurring donor, on average, gives 42% more in a year than a single donor giving on-time gifts. This is because they have a type of “set it and forget it” mentality that allows supporters to give every month without having to remember to do so. These smaller contributions really add up and give your base a chance to support you throughout the year with ease.

When it comes to individuals giving smaller donations, it may feel like a waste of time to nurture them. Through our Key to Strength program, we found many of the donors giving for the first time wanted to volunteer with the organization and learn more about how their gift is making an impact. Additionally, many came back to give a second time. This goes to show that the impact of a smaller donation really goes beyond the donation. It adds to your supporter base and gives you untapped resources that can expand your ability to help the community.


Need a Fundraising Campaign?


Charity Charms brings your brand to life in order to help you raise funds and awareness for your organization. Whether you’re running a peer-to-peer campaign, setting up a recurring donor program, or launching an online fundraising campaign, Charity Charms custom products make the perfect incentive or thank you gift. We offer easy value packages or turnkey programs like Key to Strength to meet your organization’s individual needs.



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