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Faith Leaders 3min read

Why Microdonations Are the Future of Church Giving

Churches and other organizations that rely on donations have had to make a lot of sacrifices over the last couple of decades. Many of the hardships are due to the economy’s poor performance. To some extent, though, nonprofits have failed themselves by relying on old forms of philanthropy.

If you want to sustain and increase church giving, you need to know why microdonations are the future of philanthropic giving.

Money From Major Donors Has Fallen

Money donated by some of the country’s wealthiest families fell by 20 percent in 2016. The Chronicle of Philanthropy tracks donations from the top 50 donors in the United States. According to the Chronicle, the Philanthropy 50 donated $10.2 billion to various institutes and causes in 2014. The amounts fell to $7 billion in 2015 and $5.6 billion in 2016.

This trend makes it clear that institutions must find other donation sources to make up for declining money from major donors. Microdonations offer an alternative that can fill budgetary gaps.

Church Giving Has Fallen Considerably

Religious institutions receive more charitable donations than other types of charities. Unfortunately, churches, synagogues and other places of worship have seen donations fall in recent years.

In 1990, 50 percent of donations in the U.S. went to religious institutions. By 2015, the percentage dwindled to 32 percent. Granted, 32 percent of total giving comes to about $119.3 billion. It’s a vast sum, but if the trend continues, churches could face financial troubles in the near future.

Making it easier for congregants and other community members to donate small amounts of money may breathe new life into fundraising programs.

Microdonations Match the Giving Preferences of Millennials

Millennials make up the largest demographic of U.S. society. In 2015, they surpassed the number of baby boomers. To grow your church’s donations, you have to focus on the giving preferences of this new group.

Many millennials want to give to charities and nonprofits, but they don’t donate the way their parents and grandparents do. Instead, they give small amounts of money at a time. Most of them face difficult financial situations, so they don’t donate large sums at once.

Millennials also prefer to donate through mobile devices rather than cash or checks. Using a mobile app makes it more likely that millennials will donate to your church. Since they prefer microdonations, it makes sense for you to use a donation app that lets them contribute any amount of money, no matter how small.

Keeping up with philanthropic trends could make it easier for your church to get the donations it needs to thrive. Microdonations offer a funding option that matches the preferences of today’s donors.

About the Author

Matt is dedicated to making the world a better place. He works passionately to help charitable causes use mobile technology to raise the funds they need. In addition to his role at Givelify, he volunteers with the Southside Animal Shelter and Kentuckiana Pug Rescue.

Matt Chandler