According to the latest “Fundraising Effectiveness Project (FEP) Quarterly Fundraising Report” from the Association of Fundraising Professionals Foundation for Philanthropy, donations increased 3.5% from 2023 to 2024 in terms of dollars. However, the number of donors decreased 4.5%, driven largely by a decline in small and micro donors. These donors represent 81% of the nonprofit sector’s donor base.
Small nonprofits can help reverse these trends with a microgiving strategy that increases the number of donors, as well as the collective impact of fundraising, now and in the future.
Let’s discuss why microgiving is reshaping nonprofit fundraising, the importance of engaging small-dollar donors, and how donor management software can support your microgiving strategy.
What Is Microgiving?
Microgiving refers to recurring donations in small amounts, typically $5-$25, although a microgiving strategy could involve asking for gifts as small as $1!
The idea is that microgiving enables nonprofits to expand their donor base by asking for gifts that don’t feel like a financial burden to the donor. Because smaller donations are perceived to be a low commitment, microgiving can dramatically increase participation rates.
Microgiving is appealing to Gen Z and Millennials, who not only engage with nonprofits online and share posts on their digital platforms, but are also passionate about supporting organizations that share their values.
The Larger Impact of Small-Dollar Donor Engagement
Microgiving can make your organization’s fundraising more sustainable in the long run in several ways. First, you increase donor volume by showing that smaller, more manageable gifts are both appreciated and encouraged!
Second, you create more opportunities to convert microdonors to major donors over time as they build a relationship with your nonprofit. Third, recurring gifts from more donors inevitably increase engagement, helping you build a community to support your nonprofit and make a bigger difference!
How Donor Management Software Can Help You Optimize Microgiving
Donor management software plays a key role in helping nonprofits optimize microgiving by making small, frequent donations easy to manage and grow. Start by creating a donation form with recurring giving enabled and encouraged. Set suggested donation amounts to begin at $5, increasing in small, approachable increments—such as $10, $15, $20, and $25.
Donor management software also allows you to segment micro-donors and personalize your outreach. Tailored thank-you messages, impact updates, and reminders to continue giving help donors feel appreciated, no matter the size of their gift.
In addition to tracking donations, donor management software can store data on how each donor first found your organization—whether through social media, email, events, or advertising. This makes it easier to evaluate which microgiving campaigns are most effective, both in terms of messaging and source, so you can focus your efforts on the channels that deliver the strongest results.
Finally, built-in analytics and retention tools help you monitor trends, re-engage lapsed donors, and fine-tune your overall strategy for long-term growth.
Real-World Microgiving Success Stories
Charity Water
Charity Water launched a recurring microgiving campaign to support its clean water projects. Compelling storytelling, high-quality video, and transparent funding and impact reports were used to encourage supporters to “subscribe” to monthly giving for as little as $5 per month.
The microgiving campaign, supported by powerful content and data, resulted in more than 100,000 monthly donors, with a large percentage committing to recurring giving.
Arbor Day Foundation
When the Arbor Day Foundation and YouTuber Mr. Beast launched the Team Trees campaign, people were encouraged to donate $1 per tree planted. The simple donation model and viral social media sharing resulted in exposure to millions of people.
The campaign raised $23 million from more than $800,000 donors in two months, engaging mostly younger generations to show how small donations can produce massive impact!
Tunnels to Tower Foundation
Another standout example is the Tunnel to Towers Foundation’s $11-per-month campaign. Originally launched to honor 9/11 first responders, it now supports veterans, first responders, and their families. The campaign’s strength lies in its simplicity, low monthly ask, and emotional resonance.
Through compelling storytelling and a unified, multi-channel approach, the campaign has built a robust base of recurring donors. Today, most of the foundation’s online donations come from monthly gifts—with thousands of new supporters joining each month—creating a steady and reliable funding stream.
Final Thoughts
Small gifts can make a big difference. For small nonprofits seeking to connect with younger generations and make fundraising more sustainable, microgiving campaigns can bring in new donors and re-engage lapsed donors.
All activity can be tracked through donor management software, providing opportunities to build closer donor relationships, convert small gifts into major donations, and potentially create more impact than you ever imagined!
