Nonprofits Struggle to Engage Microdonors, Report Declines

Recent data show that while overall charitable donations have increased, nonprofits are facing a significant decline in the number of small-dollar donors, highlighting a growing reliance on fewer, larger gifts and raising concerns about long-term sector health. Experts emphasize that this trend underscores the urgent need for nonprofits to revitalize small donor engagement rather than depend solely on major donors. At the same time, some nonprofit leaders caution against overemphasizing fundraising, warning it can detract from other vital activities like volunteering and strategic partnerships, which are essential for community engagement and mission sustainability. Establishing disciplined, structured major gifts programs is also identified as a key opportunity, as most donations come from a small proportion of donors, but many organizations lack the systems and accountability to maintain effective outreach. Overall, nonprofits are encouraged to balance robust fundraising with a broader focus on community involvement and donor relationships to ensure long-term success.