microdonation

A microdonation is a voluntary charitable contribution of a very small amount, typically ranging from a few cents to a few dollars. Microdonations are enabled by digital payment technologies and are often collected during routine transactions, such as online purchases, app purchases, or monthly memberships. The idea is to pool many small contributions to fund a larger impact, making philanthropy accessible to a broad base of donors.

Common mechanisms include rounding up a purchase to the next dollar and directing the change to a charity, recurring small payments, in-app tipping, and dedicated microdonation platforms. Some programs allow donors to set a fixed small monthly donate, while others offer one-time microgrants or microfunding campaigns for specific projects.

Advantages include low entry barriers for new donors, broad reach, and the potential to generate significant funds from many users over time. Microdonations can also increase awareness and engagement with charities. Challenges include collecting and processing many small transactions efficiently, transaction fees may erode small gifts, donor retention, platform dependence, and concerns about fundraising transparency and data privacy.

Microdonation has grown with the rise of e-commerce, digital wallets, and mobile apps. It is used by nonprofit organizations, social enterprises, and content creators seeking support from their audiences through simple, immediate gestures. The practice is part of the broader field of micro-philanthropy and is often integrated into corporate social responsibility programs and charitable campaigns.