We’ve all seen the headlines: donor participation is declining, while overall giving remains steady. It’s a trend that paints an incomplete picture of what generosity really looks like today.
So we decided to look closer.
At Neon One, we analyzed how nearly 100,000 people supported their favorite causes over a five-year period. We focused on individuals whose annual contributions stayed under $5,000—a threshold that includes 96.9% of all donors in the U.S.
This wasn’t about limiting the data. It was about centering the behaviors that define how most people give.
What we found challenges long-held assumptions about who “counts” as a donor—and offers a more hopeful, expansive view of generosity.
A Sector-Wide Warning Sign
The most recent Fundraising Effectiveness Project data from Q4 2024 highlights a troubling trend: overall fundraising revenue rose by 3.5% compared to the previous year, yet the number of donors fell by 4.5%. This signals a growing reliance on larger gifts from fewer individuals—a dynamic that puts long-term sustainability at risk.
Most notably, there was an 8.8% decline in donors giving between $1 and $100, a group critical to grassroots engagement and broad-based support. These micro-level contributors not only offer financial stability through volume, but they also serve as early indicators of future loyalty and involvement.
Retention trends reinforce this challenge. Overall donor retention declined by 2.6%, driven by sharp drops among small-dollar donors. Retention among Micro donors ($1–$100) fell 4.4%, while Small donors ($101–$500) saw a 3.6% decline. These groups include both first-time and repeat donors, but Micro donors are especially important as the gateway to deeper supporter relationships, and they’re slipping away.
We can’t afford to let terms like “small donor” obscure the long-term value these individuals bring. Their contributions are foundational, not just financially, but in shaping a resilient and participatory community.
Without renewed focus on engagement and retention strategies for these everyday givers, organizations may find themselves raising similar revenue from a shrinking, less resilient base. The data is clear: building resilience will require a shift away from top-heavy strategies and toward cultivating a healthy, participatory donor ecosystem.
Generosity Is a Relationship, Not a Transaction
The latest Fundraising Effectiveness Project data confirms what many fundraisers feel: donor participation is in decline. But while this signals a critical challenge for the sector, it also exposes the limits of relying solely on financial metrics to understand supporter behavior.
Participation isn’t just about donation counts or revenue totals—it’s about relationships. And if we only track dollars, we risk missing the full picture of generosity.
That’s why we turned to our own five-year panel of nearly 100,000 people. Our goal was different: to understand how everyday supporters interact with the causes they care about—financially, yes, but also through time, presence, advocacy, and trust.
What we found is that generosity isn’t a transaction. It’s a pattern of behavior rooted in connection and identity.
- Supporters who gave across multiple years contributed 1,519% more over time than those who gave once.
- Donors who registered for events increased their support by more than 2,200% from year one to year five.
- Those enrolled in recurring giving gave 121% more in their first year than the average one-time donor.
And beyond financial giving, we found that:
- Volunteers often gave more over time and engaged across multiple channels.
- Members and pledgemakers demonstrated long-term commitment through layered involvement.
- People who gave to multiple nonprofits contributed more overall—even if their individual gifts were smaller.
The takeaway? Lasting generosity is rooted in depth, not dollars. It’s revealed in patterns, not just payments. And it’s this broader, human-centered lens that we believe will define the future of resilient fundraising.
What to Do With This Insight
If we want to build a more resilient and inclusive future for the social sector, we need to stop asking, “How much did they give?” and start asking, “How are they showing up, and how are we showing up for them?”
Here are three practical shifts to begin that transformation:
- Track more than just donations. Volunteerism, advocacy, memberships, and digital engagement are all signals of generosity, and they often precede financial support.
- Celebrate longevity over volume. First gifts may be small, but consistent participation is the strongest indicator of lifetime value and commitment.
- Design experiences that grow with the supporter. When people are invited into a deeper relationship, their generosity expands, often in ways we cannot predict.
Generosity is not in retreat. It’s shifting—becoming broader, deeper, and more participatory.
The challenge now is to pay attention: not just to who gives, but how they choose to show up—and whether we’re creating space for that.
Because when we recognize generosity in all its forms, we do not just raise more money.
We build movements.
