The Power of Low-Dollar Giving: Mobilizing Supporters and Engaging New Donors

Featured article for Charitable Advisors.

Do small donations really matter? Can $5 truly make a difference in the community?

In the vast landscape of charitable giving, big numbers often steal the spotlight. It can be tempting to focus all efforts and resources on finding major donors that contribute to monumental change. A smaller donation may feel like a “drop in the bucket” compared to a major gift, but those who contribute low-dollar gifts may be the change-makers you’ve been looking for all along. 

People who give smaller amounts have the bigger potential to be lifelong supporters of your cause and become powerhouse fundraisers for your organization. 

Data shows that giving at all levels have increased. In 2020, smaller gifts (less than $250) grew by 15.3% compared to 2019. Whereas larger gifts ($1,000 or more) increased by 10.4% 

The average one-time gift was $121 in 2022, according to Double the Donation, and 57% are enrolled in a recurring giving program, compared to 46% from the previous year. 

Low-dollar gifts bring new, mission-aligned donors into the fold, creating a ripple effect of impact that exceeds the size of the donation. 

At the heart of small gifts is the collective impact. When multiplied by hundreds or thousands of donors, small gifts turn into an invaluable resource. Every gift becomes a vote of confidence, a tangible sign of support and belief in the cause and organization. The act of giving inspires others. This encourages a culture of compassion, motivating others to give and make a difference. 

Interest in philanthropy and donation revenue continue to grow, but it’s essential as a nonprofit to adapt strategies to meet donors where they are, and a lot are being found digitally and through connection. Nonprofits should devote energy to developing mobile fundraising strategies in order to have a broader reach. 

At United Way of Central Indiana, we have mobilized donors in this way through our peer-to-peer campaigns. Through this fundraising method, people organize personal campaigns to collect donations from their friends, family and network. We’ve seen success with this type of fundraising because it expands our reach beyond our own contact lists and into the networks of others.  

This summer, adventurous philanthropists have the chance to tandem skydive while raising funds to help fellow Hoosiers. Through our Sky High: Parachuting with a Purpose peer-to-peer event, participants commit to raising at least $1,500 for the opportunity to skydive with certified instructors from Skydive Indianapolis.

 These philanthropists have direct access to their friends, family and peers who may have never heard of our organization, resulting in exposure and brand awareness. The thrill-seekers advocating and soliciting donations for their fundraiser are also uplifting our cause, which does more than just raise money: It’s public support that increases the awareness of our mission.

Small donations also empower people from diverse backgrounds to participate, regardless of financial means. This sends a message that everyone’s contribution is valued and important. These donors become agents of change, fostering a sense of ownership and connection to the cause. This can lead to increased engagement as donors are more likely to actively support and promote something in which they feel they have a stake, resulting in ongoing support and advocacy.

Most importantly, low-dollar giving attracts new mission-aligned donors, giving you an opportunity to cultivate the relationship to turn a single donation into a recurring one. By lowering the barrier to entry, organizations can reach people who are passionate about making a difference.

By mobilizing supporters, amplifying the message and attracting new donors, nonprofits can harness the strength of many with low-level gifts. Whether it’s a $50 or $500 donation, the power of small gifts is an undeniable force for good.