Understandably, many nonprofits are hyper-focused on attracting donors that will contribute large sums of money or huge endowments. But, soliciting small donations can sometimes be even more helpful in the long run.
Most nonprofit workers know that any contribution can help make an impact. However, it’s important to really understand why small contributions are crucial and just how to solicit them.
3 reasons why small donations are important
Small donations help diversify fundraising streams
It can be easy to get swept up in the chase of a few major contributors. However, focusing on just large donors can often leave nonprofits in a vulnerable place. When organizations are reliant on just a few big contributors, their success is dependent on just a few sources of money.
Nonprofits that focus on soliciting smaller contributions are able to diversify their streams of funding. By allowing supporters to donate anything from $5 to $5,000, charities will begin to expand their pool of potential contributors, making their organization much more sustainable in the long term.
Small donations help target young donors
One of the biggest emerging donor bases is young people. Specifically, millennials and Gen-Z. These generations are much more interested in giving back, getting involved, and contributing to organizations that they care about.
To capitalize on this emerging donor base, nonprofits should allow for small contributions. For most young people, just graduating college or starting their first jobs, a big donation can be incredibly intimidating. And, just not possible. When nonprofits allow for small contributions, they target younger generations of people looking to give back.
Small donations encourage donor retention
By focusing on soliciting small donations, nonprofits improve the chances of repeat donorship. When major contributors donate large sums—usually only once a year or less—it gives an organization little opportunity to follow up and engage past the initial donation itself.
People that contribute small donations are more likely to give again. When a contribution doesn’t break the bank, and an organization has ample chance to follow up and touch base about new opportunities for smaller giving, they increase the chance of retaining that donor long-term.
Here are a few simple steps for soliciting small donations:
- Be specific as possible
- Create urgency
- Make it easy to donate with software solutions
- Say thank you in advance
- Follow up