Who is a Small Donor?
A small donor is an “everyday” donor, as distinct from a major funder or philanthropist. There is no fixed definition of a small donor. Small donors are crucial supporters of nonprofits in every funding landscape. Collectively, small donors account for the majority of gifts to nonprofit organizations. Depending on their capacity, they could possibly turn into a major donor.
Small-donor giving is a powerful counterbalance to the large influence of major donors on nonprofits. By raising a lot of small donations from a range of funders, nonprofits can diversify their base of support, creating a more stable funding model that is less beholden to the whims or preferences of a few major donors. Widespread giving by many small donors is arguably essential to a democratic society.
A small donor is:
- An “everyday” donor.
- One of many donors whose combined gifts meaningfully support an organization or cause, but whose individual gifts would not have a major impact on their own.
- Defined by each nonprofit, usually relative to the nonprofit’s budget and overall pool of funders.
- Deserve individualized outreach that helps them feel inspired about your nonprofit’s work.
What is the role of small donors in philanthropy?
Small donors often make up the majority of gifts to nonprofit organizations. Despite the rise of mega donors or major donors whose impact has the potential to change the conversations in national funding landscapes, small donors’ gifts are critical to nonprofits. Some organizations that receive significant support from small donors include homeless shelters, crisis centers, food banks, schools, libraries and other essential, community organizations that invest in the well-being of local individuals.
Small donors can make a big impact on a nonprofit or issue by pooling their resources—whether through a giving circle or by contributing alongside hundreds or thousands of others to a cause they all care about.
Being funded by many small donors, rather than a few major donors, means a nonprofit is less beholden to the wishes—or whims—of major donors. Small donors may also be closer to, or even a part of, the community a nonprofit serves—which gives these small donors a clearer picture of what that community needs, in contrast to a larger funder who may be removed from the needs of a particular community.
Small donors have the potential to impact philanthropy in ways that democratize society. The more widespread giving is—spread among many donors, each contributing a small amount—the more democratic philanthropy and society are. In a society where philanthropy is intended to fill gaps because the public sector does not adequately resource important aspects of life like healthcare, education and the arts, a relatively small number of private individuals can have a profound influence in shaping society. Simply put, more small donors equals more democracy.
How do I find small donors for a nonprofit?
Your organization’s best small donors are probably members of the community or constituency you serve.
- People who have a direct relationship with your group and who see the impact of your work firsthand are great prospects for small donations.
- People who volunteer at your organization may also be good candidates to make donations.
- An end-of-year fundraising letter or email (aka an annual appeal) to your mailing list, a social-media campaign on #GivingTuesday, a “donate” button on your website, and passing the hat at your organization’s events are among the many ways to connect with small donors.
- Grassroots fundraising campaigns or getting to know giving circles at local community foundations are other ways to connect with small donors.
How do you cultivate relationships with small donors?
The key to cultivating small donors is to treat them with equal importance. In other words, treat every small donor like they have the potential to become a major donor. While this approach can prove to be time consuming depending on the size of your fundraising team, it will pay itself forwards.
To cultivate small donors, focus on relationships and providing meaningful engagement opportunities:
- Personalize communication.
- Learn more about your small donor’s connection to your organization. Ask what inspires their interest in your nonprofit.
- Call them directly on a timely schedule. Follow-up with a hand-written note, photo or update about work that inspires them.
- Write them individual, hand written thank you note for their donation or volunteer work. Mention one thing you remember about your conversation with them.
- Meet for coffee with a single small donor or a handful, but keep the gathering intimate, so communication doesn’t get lost.
- Send them an email with updates from your nonprofit’s work that align with the small donor’s interests.
- User small donor spotlights in your organization’s newsletters by email or snail mail.
- Host virtual meet-ups. Small donors are busy, keep it to 15 minutes, plan for 30 if conversation becomes excited.
- Note the anniversary of your small donor’s gift and remember them annually by a handwritten card, call or message.
- Engage meaningfully.
- Share tailored information or content that describes the inner workings of your nonprofit. This helps small donors feel like they’re in on something special.
- Invite them to donor appreciation coffee hours, lunches or other events that your organization can host on both the micro and macro levels.
- Provide volunteer opportunities. Help small donors connect with your mission and see things from the inside.
- Avoid swag. It’s costly for you, and it doesn’t speak to all donors.
- Cultivate for the long-term.
- Small donors have the potential to become major donors.
- Learn donors’ capacity for giving.
- Segment small donors in your database by personal interests in your work.
- As you gain resources, experience and time, scale efforts to support donor outreach.
- Document everything in your CRM.
- Segment how you can scale your personalized outreach depending on a donor’s potential to give down the line.
- Via newsletters and events, share and spotlight exactly how small donor support helps your organization reach its goals.
- Ask about legacy planning. Many small donors may not have the funds now, but their estate, life insurance, or retirement planning might.
- Create different avenues for giving.
Small steps add up over time, but consistency and authenticity are key to building relationships with small donors. Even if they’re not able to give more, they have the potential to become committed to your nonprofit through excitement about your mission and how your work supports your focus area(s). Small donors, in this light, have the potential to amplify your work and put you in contact with other small or major donors.
