Earlier this year, I bought some Goodr sunglasses. It was a simple purchase I didn’t think much about. That is, until I got their welcome email. Here’s what it said:

“SQUAWWWWWWK
That’s flamingo for “Welcome to goodr, where we’re recklessly committed to fun…
BLAH, BLAH, BLAH, sunglasses.

Congratulations! You took the leap and signed up for a lifelong* email commitment to us, your new goodr friends. In lieu of a friendship bracelet, we shall seal the deal by exchanging a good, old-fashioned belligerent banter while telling you about the latest releases of our award-winning, stylish, affordable, and high-performance sunglasses. “

Now, as far as sunglasses go, these are inexpensive. They’re nothing fancy—and not bringing a ton of revenue from this one purchase. But goodr treated me like a rockstar anyway.

And here’s what goodr’s email shows us about our small donors:

Every donor is important. You can’t save the red carpet experience for the donors who bring in the most revenue. Instead, your job is to help every single donor feel valued.

Maybe you’re thinking you’d rather focus your time on the big bucks; you don’t feel like $5 does anything to your bottom line. But think of it this way: no matter how you feel about the dollar amount, the ACTUAL HUMAN PERSON—the one who cared enough to give a gift—they should matter to you. Right?

That’s why today we’re going to go over how to stop ignoring your $5 donors.

The cost of ignoring your small donors

Why create a stewardship plan for a donor segment that brings in less than $500 a year?

I get it, as an executive director with your nose to the fundraising grindstone, you’re focused on financial gains. So let’s talk about the numbers. Let’s just say for argument’s sake you have 12 people who give $12 a year. That’s only $144 a year. Why bother?

Well, lemme tell you. If you had another 10 donors come in at that same $12 mark, that brings your $12 donor segment up to $264 total. See what I mean? The more donors you have in the small gifts segment, the more your revenue begins to grow. (MATH—who knew!?!)

But for real. What doesn’t seem like a lot now could end up being A LOT MORE in the future. So if you’re not focused on serving your small gift segment, you’re missing out on potential growth. Let’s dive into what you’re losing when you don't build relationships with those smaller-level donors.

Losing lifetime value (LTV)

What is donor lifetime value? It’s the dollar amount a donor gives over the course of their relationship with you.

Here’s the thing. LTV is hard to picture in your day-to-day. It doesn’t feel tangible. The immediate donations we have in front of us are usually what we can wrap our heads around, not what any given donor will give in the lifetime of their relationship with you.

We make the wrong assumptions. We assume the bigger donors are the ones who will bring in the most value over time. But guess what? That $8,000 donor could stop giving next year. Or that $10,000 grant you get “every year” could run dry. Meanwhile, your smaller donors could bring just as much—if not more—over their lifetime of giving. Those dollars add up.

They might not be able to give a big amount now, but what about 10 years from now? What about their planned giving?

When you focus on giving smaller donors a memorable experience, they’re going to be more likely to have positive feelings about your nonprofit and want to spread the word. Which brings us to another cost of losing small donors:

Losing Peer-to-Peer Fundraisers

Your $5 donors might not be able to afford another year-end gift, but maybe they can help you spread the word. That’s why you want to help them feel like they’re a part of something bigger as you connect with them (because they ARE a part of something bigger).

So many nonprofit executive directors spend most of their time chasing a handful of major givers. And it makes sense on the surface; those bigger donations seem like the most important and impactful. (After all, $10,000 goes so much further than $10). But if you want to create a sustainable and lasting nonprofit organization, you need a community of advocates behind you. Without a strategy to connect with your lower-level donor segments, you’re missing out on a huge opportunity to create meaningful relationships with people who genuinely care about your work.

Losing future advocates

You never know what inspires that first donation. Sometimes, a smaller donor is scoping you out. Steven Shattuck, Chief Engagement Officer at Bloomerang says any donor could be:

“A potential board member.A potential employee. A potential sponsor. A potential grantee. Any one of these parties could be checking to see how you follow-up. Do you communicate impact? Who does the communication come from? What is the content of your newsletters and other marketing materials?”

This gives you yet another reason not to scoff at a smaller donation. Maybe they’re trying to see if you mean what you say (and say what you mean). Maybe they’re interested in working for you but they want to make sure you ACTUALLY care.

You say “every dollar counts.” Prove you mean it by nurturing your smaller donors.

How to nurture your small gift segment

1. Automate the first gift acknowledgment.

Just like every other donor segment, you’ll need to automate the first point of contact. Make sure your message shares how grateful you are and what their gift means to the people, animals, and places you serve.

2. Segment your email list.

Whether you’re sending a monthly update or messages for a campaign, make sure your donors feel seen and appreciated. (While we’re at it: any links to your donation form should be tailored to them to start. You don’t want a form with only $1,000 and up options if that’ll be off-putting for this crowd).

3. Get to know your donors.

You're in the business of making lasting relationships, and your small donors deserve some love.

Send a survey or poll to get to know them.

Ask for replies in your segmented emails so you can find out what resonates with them.

Even better? See if you can hop on a call or have a volunteer connect with them.

4. Be consistent.

Nurturing your donors is all about building meaningful relationships and lasting connections. Make sure you’re connecting to all your donors in some way on a monthly basis (like with a newsletter).

Every donor REALLY counts

Even if someone can only afford $5 a year, that donor is still important. They care about the work you do. They could volunteer, become a future board member, or even share your work with their friends and family. Use your stewardship strategy to connect with every level, so you can make sure donors feel appreciated and loved for all that they do.

Stop ignoring your $5 donors