The Importance of Reaching Donors at All Giving Levels

The Chronicle of Philanthropy recently shared an article about reaching individual donors. Having spent many years working with nonprofits of all sizes, I understand the 80/20 rule whereby 20% of donors (often referred to as major donors) give nonprofits 80% of their philanthropy income.  

The ordinary, everyday contributor who is often a volunteer, describes me over the years . . . donating food and cash to food shelves, buying school supplies and backpacks for additional children, and supporting various holiday programs. Taking my daughters shopping with me so they can experience the importance of helping others who struggle to meet basic necessities was an important seasonal ritual. Hopefully living by example has sparked seeds for future volunteer engagement and generosity as they are now out of college and living on their own.  

Fundraising professionals are encouraged to spend their time building relationships and cultivating donors with financial capacity, especially when their organization needs money now to manage the increased cost of doing business. I understand the tug of paying the bills now and supporting the organization for the Long Play.   

However, I don’t want the sector to overlook the importance of building a base of smaller contributors/donors as they too want to feel valued and know their gifts are making a difference. It certainly continues to matter to me even if my gift size has grown a bit. Building a base of everyday donors to reduce reliance on major donors is not only strategic, but it may protect the organization from a huge revenue decline should the donor move away, or the next generation has different philanthropic interests.  

The authors state that, “it’s important to cultivate these lower-dollar donors, because they are your next major donors.” I am so pleased when I hear executive directors and fundraising professionals say, “I send thank you letters to everyone; even the $5 donors.” It’s important to engage the donor and continue to earn their trust over time. The old saying, “it takes a village” is certainly true in today’s uncertain economy.  

Click here to learn more about how Strategic Consulting & Coaching can support you and help your organization thrive.