Are Small Monthly Donations Worth It? Why Every Nonprofit Should Rethink the $5 Donor
Are small monthly donations worth it? It’s a question I’ve been thinking about lately, and I wonder if nonprofits are missing an opportunity to connect with more donors over this very issue.
I know a lot of nonprofits that operate monthly giving programs. And I know a lot of people who could afford to give $5/month towards that cause, but they don’t.
They perceive that $5/month is too much of an administrative burden for the nonprofit — like it’s not worth it. Or they perceive that $5/month won’t go far. Or they’re simply embarrassed they can’t make a larger gift. So they move on and that nonprofit doesn’t receive the donation.
Are Small Monthly Donations Worth It?
If you’re a nonprofit leader, here’s my question: Would you rather have a donor who gives $5 every month or no donor at all?
Yes, payment processing fees are real, but so is the opportunity to build a relationship. That $5/month in year one could turn into $50/month by year five or that major donor ten years down the road. That $5/month donor could become your next volunteer or your biggest social media champion.
Personally, I think there’s a lot of value there.
Are Nonprofits Sending the Wrong Message?
I also wonder if nonprofits unintentionally send the message that only larger gifts matter. Many donation pages highlight impact at $25, $50, or $100 per month. Of course, you want to encourage larger gifts, but where does that leave the person who can give a smaller amount? If they don’t see themselves represented, they may assume their gift isn’t meaningful and they move on.
Help People See the Impact
If small monthly donations matter to your organization, say so. Show them what $5/month can do. Does it buy 5 new boxes of crayons for your art program? Does it feed a few cats for a day? Perhaps it provides enough gas money to get that person in recovery to work for the day.
When people understand the impact of their gift, they’re more likely to make it.
What Do You Think?
I’d love to hear from nonprofit leaders.
Would you gladly accept a $5 monthly donor, or do you think there’s a point where the administrative costs outweigh the benefit?