The Most Overlooked Growth Opportunity in Your Donor Database (small donors)
- Jun 1, 2016
- 3 min read
Updated: Dec 13, 2025
Sometimes your smallest donors hold the largest promise of major gifts, but you'll never know, unless you reach out to them!
The Most Overlooked Growth Opportunity
in Your Donor Database (small donors)
Today, I want to talk about a group of donors that many nonprofits unintentionally ignore—not because they don’t matter, but because they’re misunderstood.
I’m working with an organization right now that has a database of roughly 15,000–20,000 donors, which is impressive for a nonprofit with about a $5 million annual budget.
On the surface, everything looks solid.
But when we dug deeper, a problem emerged.
When Fundraising Focus Gets Too Narrow
Like many nonprofits, this organization concentrates most of its fundraising energy on major donors—those giving $5,000 or more.
That makes sense… to a point.
But in doing so, they were unintentionally overlooking a powerful group sitting quietly in their database:
Donors giving $25
$50 donors
$100 donors
Consistent, year-after-year supporters
These donors were being treated as if they would always stay at that level.
That assumption is expensive.
Why Small Gifts Don’t Mean Small Capacity
Here’s what many nonprofit leaders miss:
Smaller gifts are often test gifts.
Donors—at all levels—use initial gifts to answer key questions:
How will I be treated?
Does my gift matter?
Will I see impact?
Can I trust this organization?
Mid-level and even major donors frequently start small for this very reason.
And the number one reason a donor makes a second gift is simple:how they were treated after the first one.
The Hidden Signals in Your Database
Let me ask you this:
Do you have donors who’ve given $50 every year for 5 years?
What about donors who’ve made 8–10 small gifts over time?
Are there donors quietly showing loyalty and consistency?
Those patterns matter.
A donor who gives $50 ten times is not a casual donor—they’re signaling commitment. And commitment often correlates with capacity.
A Simple Test with Surprising Results
We ran a very basic experiment.
This organization:
Identified about 500 consistent small donors
Focused on donors giving $50–$100 repeatedly
Chose not to send another email
Instead, they made phone calls.
The result?
50% upgraded their gift to $250 or more
3 donors made gifts over $1,000
All from a single, thoughtful phone call.
No fancy campaign.No pressure.Just connection.
Why This Works So Well
Phone calls do what emails can’t:
Create dialogue
Build trust
Show appreciation
Allow donors to feel seen
Most donors don’t give more because they haven’t been asked—or invited—to do so.
Creating a Clear Path to Higher Giving
If you want donors to grow, you must show them how.
That means creating a giving ladder—a clear, intuitive progression.
Examples might include:
Entry-level → Core supporter → Leadership giver
Mission-themed levels tied to your cause
Creative naming aligned with your brand (not generic tiers)
The goal isn’t pressure—it’s possibility.
What You Should Do Next
Here’s your challenge:
Comb through your donor list
Identify long-term, consistent small donors
Look for loyalty, not just dollar amount
Reach out personally—by phone
Invite them to take the next step
You may be sitting on untapped major donors without realizing it.
Key Takeaways
Small gifts often signal testing, not limited capacity
Loyalty is a strong predictor of future giving
Consistent donors deserve personal outreach
Phone calls outperform emails for upgrades
Clear giving paths help donors grow
Summary
Your donor database likely holds far more potential than you think.
The donors giving $25 or $50 today may be the donors giving $500 or $5,000 tomorrow—if you engage them, thank them, and invite them forward.
Don’t ignore the quiet supporters.
Reach out. Have a conversation. And give them a reason—and a path—to grow.
Tom Iselin
Rated One of America’s Best Board Retreat
and Strategic Planning Facilitators
About the Author
Tom Iselin is recognized as one of America’s leading authorities on high-performance nonprofits. He has built nine sector-leading nonprofits and two software companies, written six books, sits on multiple boards, and has been rated one of America’s Best Board Retreat and Strategic Planning Facilitators. His work on nonprofit strategy, board leadership, and culture has been featured on CNN, Nightline, and in Newsweek.
Tom is the president of First Things First, a firm specializing in board retreats, strategic planning services, fundraising strategy, and executive coaching for nonprofit CEOs.
Board Retreats & Strategic Planning
If you’re looking for a board retreat facilitator or strategic planning facilitator who has been in the trenches and understands real-world nonprofit challenges, Tom can help your board gain clarity, build alignment, and create an actionable plan that improves performance and impact. His sessions propel organizations to the next level of performance and impact . . . and they're fun!
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