Gone are the days when philanthropy was a domain only for the rich and famous.
With the introduction of new mindsets and new technologies, anyone can now become a micro-philanthropist. The notion of “small change, big impact” has gained traction over the years and is beginning to shift the way people look at donations as a whole.
Naturally, all nonprofits want to land major donors who will give substantial contributions to their cause. While that is still the goal, the reality is that these donors are relatively rare. On the other hand, there is a vast pool of potential donors who are willing to donate smaller amounts regularly over time. Daniel Todd Lerner explains that this is where the beauty of micro-donations comes in.
Below is an exploration of the concept of micro-donations and how they collectively drive meaningful change in charitable initiatives.
Micro-Donation – Small Change, Big Impact
As the name suggests, micro-donations are small financial contributions to a cause, usually ranging from $0.25 to $25. These donations are typically given on a regular basis, forming a significant source of funding for charitable initiatives.
Micro-donations [1] are quite powerful, as they make philanthropy more accessible and affordable for smartphone and internet users around the world.
This is why it’s no surprise that younger generations, specifically Millennials and Gen Z, currently make up a huge percentage of micro-donors. As of September, nearly half [2] of Gen Z’ers have given to an individual’s personal cause on GoFundMe or a similar platform this past year.
Small Gifts Make a Big Difference
Micro-donations offer charities and non-profits a more sustainable method for raising funds. Benefits of micro-donations include:
Broadens the Donor Base
Micro-donations appeal to a wider audience because the donation amount is far smaller. It’s easier to find individuals who are willing to spare a few cents or dollars on a regular basis than major donors who will contribute a massive amount every year.
The cumulative impact of multiple small donations can even surpass that of major donors, providing charitable initiatives with more significant potential for change.
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Encourages Longer-Term Support
While substantial donations will usually roll in once or twice a year, charities can receive micro-donations all year long – that really adds up over time!
The consistent stream of support not only provides charities and nonprofits with a stable source of income, but it also deepens the connection between donors and the causes they contribute to. As individuals continue to donate small amounts on a regular basis, they become more invested in the charity’s mission, leading to more engaged supporters.
Makes Philanthropy More Accessible
While a $1 dollar contribution alone won’t make a huge difference in achieving a cause, that dollar from thousands or even millions of different people certainly will. Because there are plenty of accessible avenues for making these donations, such as through mobile phones and the internet, more people are more likely to donate to a cause.
The idea of giving small gifts to a cause not only helps grow a nonprofit’s donor base, but also helps retain recurring donors, making micro-philanthropy a great way to achieve long-term security and sustainability for charitable initiatives. Micro-philanthropy and micro-donations are set to rise in popularity as the technology gains momentum and people see an easier, simpler, and faster way to give [3] and integrate charity into their daily lives.