The Power of Donors Committing to Micro-Sponsorships


For many years, when traditional media hadn't fractured and long before the internet, Americans would watch telethons on television to support a good cause. Global organizations such as UNICEF or Save the Children have asked for regular donations for decades. In many cases, depending on how you defined the regular contributions monetarily, these were micro-sponsorships.
Somewhere along the line, the focus on smaller donations shifted to trying to get major donors. However, as major donors have consolidated their giving for various reasons, there's an opportunity — particularly for smaller nonprofits — to focus on micro-sponsors. In short, these types of donors can provide an organization between $250 and $1,000. So, they're just above general donors and below major donors in contribution size.
Nonprofit fundraisers who seek support, particularly for organizations with small budgets, can develop a transformative strategy by focusing on micro-sponsorships. Again, micro-sponsors can fill the gap with the consolidation in giving for major donors that increasingly focus on organizations that can prove scale and scope. Moreover, this level of contributors can become major donors with time and quality donor cultivation.
Case Study: Unbound's Sponsorship Model
Like UNICEF or Save the Children, Unbound is a nonprofit that uses the sponsorship model. This organization has been around since 1981, but its model goes beyond supporting children. Micro-sponsors can support children, youth and seniors. In short, sponsors commit to giving a monthly contribution to support people in 17 worldwide countries. The needs of the people can be anything from basic needs to education and community development efforts.
As fundraisers learn during their careers, monthly sustaining gifts usually provide a higher lifetime value for donors. So, instead of asking a donor who might not be inclined for whatever reason to give a $250 gift outright, a nonprofit can get $300 annually from a micro-sponsor by asking for $25 per month. As we know, people are used to paying for subscriptions like Netflix, and it doesn't hurt the budget as a one-time gift might.
Benefits of Micro-Sponsorships
One key finding for fundraising in 2024 was that the number of donors is declining. For instance, small-dollar donors, or micro-donors giving less than $100 to a nonprofit, are giving significantly less. Retaining donors across the board is a significant challenge for nonprofit organizations, with the lowest dip in retention coming from those contributing more than $50,000. That indicates that donors need a compelling reason to support a nonprofit.
By creating micro-sponsorships for donors who could support an organization between $250 and $1,000 annually, nonprofits offer donors a more manageable way to continue supporting a mission that may be close to their hearts and minds. Moreover, nonprofits can also partner with businesses to create a sense of shared community in finding micro-sponsors. For example, people who sign up to be sponsors get a 10% discount at a business.
Strategies for Implementing Micro-Sponsorships
The micro-sponsorship approach can benefit any nonprofit, especially those with smaller budgets. Micro-sponsorships can allow donors who may have less disposable cash to make a larger contribution during a year in a "subscription-based" approach that they're used to doing. For nonprofits that would like to pursue the approach, here are the strategies for implementation.
1. Identify Potential Sponsors
Fortunately, nonprofits have access to more data than they did in the past and valuable insights that can be aggregated and consolidated due to technology. Therefore, reviewing donor giving for the last three to five years and to find giving patterns is essential. Focus on people who have given single gifts between $250 and $1,000 and cumulative gifts in that range. Once you identify those people, they're the best prospects.
2. Develop Compelling Sponsorship Packages
Another essential strategy for micro-sponsorships to take hold within a nonprofit is to create compelling packages. An organization should consider the benefits of donor tiers within a micro-sponsorship package. It really doesn't matter what your organization does — most can create sponsorships for micro-sponsorships in education, healthcare, climate, etc. Remember that the packages rely on expert and exceptional storytelling across all your media.
3. Craft Personalized Proposals
It’s essential to remember that even if a donor is giving $25 a month, by the end of the year, it's $300. So, they deserve a personal approach. For every tier within your micro-sponsorship program, offer a personalized invitation to join. For instance, for a tier in the range of $750 to $1,000, invite them to a private event. For those between $500 and $750, ask them to an inaugural video call. Additionally, you can invite all of them to a private social network.
4. Maintaining Open and Varied Community Communication
To the earlier point, one of the best ways to keep a close community is to create a social network. People want to be members of something, and your nonprofit can serve as the place where people can come together for virtual and in-person events and communication. Consider having sessions with program members, the executive director and donors who want to take a leadership position in the micro-sponsorship program.
5. Recognizing and Appreciating Sponsors
Although it's said often, you'd be surprised how often donors aren't thanked or feel appreciated for their efforts. Therefore, creating a program for micro-sponsors that regularly thanks them in many ways is an excellent approach to ensuring a high retention rate for donors. However, make it a point to also send handwritten notes or even voice texts to ensure they know that your appreciation stands out.
Expanding Fundraising Revenue
It's essential for nonprofits, especially for smaller organizations, to ensure a varied fundraising revenue stream. Relying on a few major donors or institutional funders could create issues down the line if someone moves on. By focusing on micro-sponsors, your organization can create a focused revenue stream. More importantly, it can make a community that advances and amplifies the nonprofit's impact.
The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.
Related story: 5 Tips to Improve Sustainer Acquisition and Retention

Wayne Elsey is the founder and CEO of Elsey Enterprises. Among his various independent brands, he is also the founder and CEO of Funds2Orgs, a social enterprise that helps nonprofits, schools, churches, civic groups, individuals and others raise funds, while helping to support micro-enterprise (small business) opportunities in developing nations and the environment.
You can learn more about Wayne and obtain free resources, including his books on his blog, Not Your Father’s Charity.





