Nonprofit organizations – including groups like the Shriners and other well-known charities – frequently solicit donations in the specific amount of $19 per month. This isn’t random; it’s a calculated strategy designed to maximize sustained giving and long-term financial stability. The approach leverages psychological triggers to encourage consistent contributions, ultimately aiming for larger, planned gifts from donors.
Why $19, Specifically?
The number is strategically chosen because it sits just below the psychologically significant $20 threshold. This makes it appear more affordable and accessible, increasing the likelihood of initial commitment. As Clay Grayson, author of The Philanthropist Handbook, explains, nonprofits first build a base of regular donors through these smaller asks. Over time, they encourage increases in annual giving. The ultimate goal is to transition these donors into planned gifts – leaving substantial amounts to the organization in their estate planning.
The Power of Incremental Giving
Asking for $19 instead of $20 may seem trivial, but the difference matters. It’s easier to convince someone to commit to a $19 monthly donation than a larger sum. Yusef-Andre Wiley, founder of Timelist Group, points out that even small amounts accumulate rapidly: “Just imagine ten thousand people donating $19.99 a month consistently.” This approach fosters long-term engagement, turning one-time contributions into recurring revenue.
Avoiding IRS Scrutiny
The $19 ask also helps charities bypass certain IRS reporting requirements. The IRS mandates donation receipts for annual contributions of $250 or more. By keeping individual donations under this threshold, organizations reduce administrative burdens and streamline their fundraising process.
From Monthly Donations to Endowments
Nonprofits aim to convert annual gifts into planned gifts : donations left in a donor’s will. Once these funds are put into a permanently restricted endowment, the principal remains untouched, and only the income generated is used for the nonprofit’s mission. As an example, a $475 planned gift can generate $19 in annual income for the organization indefinitely. This cultivates a lasting relationship between donor and cause.
A Multi-Trillion Dollar Trend
The strategy is particularly potent given the upcoming generational wealth transfer. Experts predict that baby boomers will transfer over $16 trillion to nonprofits in the next 20 years. This means that small, initial donations – like $19 a month – can snowball into massive long-term funding for the nonprofit sector.
The psychology behind the $19 ask isn’t about the immediate dollar amount; it’s about building trust, encouraging consistency, and securing future financial stability through long-term donor relationships.
This approach demonstrates how nonprofits strategically leverage behavioral economics to maximize fundraising effectiveness.
