How to Create Effective Donation Tiers to Boost Donations?

For nonprofits, the structure of your donation form can be the difference between inspiring generosity and missing fundraising goals.

While many organizations focus on perfecting their mission statement or campaign message, the psychology behind donation tiers often gets overlooked – yet it's crucial for sustainable fundraising success.

Well-designed donation tiers do more than just suggest amounts; they create a framework that connects donors directly to your impact.

In this comprehensive guide, we'll explore proven strategies for creating donation tiers that resonate with supporters while advancing your mission and raising more funds.

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Table of contents 

What are donation levels in nonprofits?

Difference between donation levels and donation types

Benefits of establishing donation tiers or levels

What are the different types of donation tiers?

5 simple steps to build your donation tiers

5 best practices to create donation tiers to raise more funds

Final thoughts on donation tiers for nonprofits

FAQs on creating donation tiers 

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What are donation tiers in nonprofits?

Donation tiers, also known as donation levels, are suggested donation amounts on online fundraising or donation pages. For example, a nonprofit may have donation levels of $10, $20, $50, and so on. 

These suggested amounts serve as helpful benchmarks that guide potential donors' giving decisions.  Rather than guessing the appropriate amount, donors can quickly select from options that the organization has carefully chosen based on their needs and their donor’s giving patterns.

Each tier typically includes a description that shows donors exactly what their gift will help accomplish, whether it's providing meals, supplies, or services. For example, the donation form created by Impact Ministries clearly shows that a $25 donation will help supply food, hygiene, and toiletries for guests at the warming shelter.

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Difference between donation levels and donation types

Donation levels are a series of predetermined donation amounts, such as $50, $100, and $150 on your giving page. The purpose of donation levels is to help supporters decide how much they should contribute. 

Donation types refer to different kinds of donations like major gifts, in-kind donations, recurring gifts, or one-time donations. They offer donors flexible ways to contribute according to their needs and preferences.

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Benefits of establishing donation tiers or levels

1. Simplifies the giving process 

Predefined donation tiers eliminate the guesswork from giving. Instead of facing an empty donation field, supporters can choose easily from suggested amounts. This is especially helpful for first-time donors who might be uncertain about how much to contribute.

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2. Makes donor classification effective

Donation levels help categorize your potential donors into different donor groups. Whether someone contributes $5 or $50, you can identify their giving capacity and category - from small-scale to major donors. 

This segmentation allows you to tailor your donor engagement efforts to better appeal to the donor. For instance, you can use emails and social media to engage small-scale donors, while major donors can get exclusive event invitations.

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3. Allows you to set achievable fundraising goals 

Breaking down fundraising targets into different donation tiers makes large goals more manageable.

Rather than just targeting a total amount like "$10,000," you can plan more strategically, aiming for specific numbers of donors at each tier level. This makes it easier to track progress and adjust your fundraising strategies when needed.

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What are the different types of donation tiers?

1. Person-based 

Donors connect more deeply with causes when they see the direct impact of their giving. Instead of saying, "Support our education program," these tiers show specific impacts like "Help Maria get textbooks for a semester."

By tying each donation amount to specific individuals or the number of people you're helping, donors feel a personal connection to the cause. This approach is most effective when your campaign can showcase the real people and communities receiving your services.

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2. Item-based 

Item-based tiers connect donations to specific tangible gifts, resources, or services your organization offers.

For instance, "$1 provides for 10 meals to families in need" or "$50 supplies a month of school materials." This approach helps donors visualize exactly what their money buys and how it makes a difference.

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3. Time-based 

For projects where you can't break down donation tiers based on people or items, consider structuring them around time periods - days, weeks, or months of support needed. For instance, $100 funds a week of therapy, or $500 covers the repair of the shelter's roof. 

Time-based donation tiers are particularly great for fundraising campaigns focused on ongoing needs like medical care, therapy sessions, construction work, or time-bound programs.

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4. Reward-based

With reward-based donation tiers, supporters receive special acknowledgments or perks based on their giving level. Offering potential supporters something in return for their donation encourages them to give more. 

For instance, a $100 donation could earn public recognition or exclusive merch. This approach is particularly effective for crowdfunding or seasonal fundraising campaigns, where tangible perks can lead to higher donation amounts.

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5. Title-based 

Donors receive special titles based on their contribution levels, which often creates a sense of belonging and makes them feel like true members of your community. Using fun and creative titles around a theme makes giving more engaging for your supporters. 

For instance, an animal shelter might name $50 donors "Puppy Protectors" and $500 supporters "Lion-Hearted Leaders."

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5 simple steps to build your donation tiers

1. Gather donation data 

Define the specific objectives your nonprofit aims to achieve - whether it's funding a new project, covering daily operations, or meeting annual targets. Break this goal into smaller targets so you can determine how much money each tier needs to bring in.

Look at your past donation data to understand supporters' giving patterns and calculate the average donation amount. 

Use this data to create tiers that align with your donors' giving capacity and your funding goals. By tailoring tiers to actual giving patterns and keeping them close to your average donation amount, you'll make it easier for supporters to give at levels that feel comfortable to them.

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2. Establish giving levels 

Create four to six giving levels that align with your donors' patterns. Too many options can overwhelm donors and slow their decision-making. Start your lowest tier near your average donation amount and build upward strategically.

For example, if your typical donations range from $25 to $500, avoid jumping straight to a $10,000 tier. Instead, set your highest tier slightly above your current largest gifts. This approach encourages generous donors to stretch a bit higher while keeping all tiers within a realistic range.

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3. Link each giving level to specific outcomes 

Show donors exactly what their gift will do at each giving level. When they understand the specific impact of their donation, they're more likely to give more and stay connected to your cause. 

Next to each giving level, offer clear and valuable information on the impact it will help your organization create. 

For example, a wildlife conservation nonprofit might structure their giving levels like this:

• $25 monthly: Provides nutritious food for one endangered species
• $50 monthly: Covers essential veterinary care and monitoring
• $100 monthly: Supports habitat restoration and protection
• $250 monthly: Funds research and tracking equipment for conservation efforts
• $500 monthly: Enables complete care for a family of endangered animals

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4. Name your donation tiers 

Give your donation tiers names to create a sense of community and recognition, making donors feel like they're part of some exclusive group. While classic names like Bronze, Silver, and Gold work, you can be more creative by choosing names that connect to your mission. 

For instance, a sea turtle conservation group might use:

• Guardian ($25/month): Protects nesting sites
• Defender ($50/month): Saves injured turtles
• Champion ($100/month): Preserves ocean habitats
• Legacy Protector ($250/month): Creates lasting sanctuary spaces

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5. Incorporate incentives 

Offering small perks or incentives for your different giving levels creates a sense of appreciation and encourages giving at higher levels. Keep your perks in line with each tier – the higher the contribution, the more special the recognition.

For instance, a performing arts nonprofit might offer:

• Monthly donors get early access to show tickets
• Mid-level supporters receive backstage tours
• Top-tier donors join exclusive meet-and-greets with artists
• All levels get recognition in performance programs

Choose benefits that connect donors more deeply to your work without draining your resources. The best perks give supporters unique ways to experience your mission firsthand.

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5 best practices to create donation tiers to raise more funds

1. Provide a custom-giving option 

Add a "Custom Amount" option alongside your set giving levels on your donation form. While many donors appreciate suggested amounts, some come ready to give a specific sum that fits their budget or giving plans.

Here’s why you should let donors choose their amount:

• Gives flexibility to those who want to give more than your highest-tier
• Makes it comfortable for those who can't meet your lowest suggested level
• Show donors that you respect their individual needs and value their support at any level

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2. Offer recurring donations at each tier 

Include both one-time and recurring donation options at each giving level to showcase the power of sustained support.

For instance, alongside a $25 one-time gift, offer a $25 monthly option and highlight its long-term impact - like providing clean water to one family each month or twelve families over a year.

Make sure donors know they have full control to start, modify, or pause their monthly contributions as needed.

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3. Anchor the tiers strategically

Add a strategically high donation tier to make mid-level options more appealing. 

When donors see a $1,000 tier alongside a $500 tier, the $500 option feels more manageable. This approach, known as the attraction effect, helps guide supporters toward middle-range tiers by making these amounts appear more reasonable in comparison.

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4. Use social proof 

Share proof of how many donors are supporting each tier. People are more likely to join when they see others giving at a certain level. 

For instance, a simple mention that 40 donors chose the mid-giving level helps new supporters feel confident about their choice and makes them feel part of a wider community of donors.

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5. Integrate matching gift opportunities

Link specific giving tiers to matching gift opportunities to double your donors' impact.

For the $100 tier, highlight: "Your $100 gift becomes $200 with our partner's matching funds." Showing donors how their contribution can go further - without additional cost - often motivates them to give at match-eligible levels.

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Final thoughts on donation tiers for nonprofits

Donation tiers provide a clear framework that guides supporters in their giving journey. Each level connects to specific outcomes, helping build donor trust and showing exactly how their gifts create change in the community.

Start by creating 4-6 giving levels that match your donors' patterns and organizational goals. Link each tier to a specific impact and regularly review to ensure your tiers stay effective and continue inspiring support.

Use Zeffy's 100% free online donation platform to easily create and manage donation tiers. Our user-friendly platform lets you set up fundraising campaigns and donation forms with both custom tiers and recurring gifts - all without any fees or technical hassle.

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FAQs on creating donation tiers