Why donation tiers work and how to get them right

Inspiring someone to give is only half the story. Once someone’s made the decision to donate, you need to make the final action as smooth and profitable as possible. That’s where donation tiers come in. Instead of leaving donation forms wide open, nonprofits can use tiered giving options to maximize the impact of every ask. 

Intrigued? In this post, we’ll explore what donation tiers are, how they work, and how you can use them to engage donors and help you achieve your organization’s fundraising goals.  

What are donation tiers and donation levels?

A staple of fundraising campaigns and appeals, donation tiers (sometimes known as donation levels) are preset gift amounts that help facilitate the giving process. Imagine it: you’ve shared your story, made your case, and inspired someone to give. Instead of leaving them to guess what amount you need, your donation form includes three to five carefully chosen options — with each tied to a tangible item, activity, or outcome.  

How donation tiers work

When it comes to donation forms, it can be tempting to leave the final gift amount wide open. But too much choice can be overwhelming for donors, and that freedom can become a barrier to action.

Donation tiers improve the giving process and encourage donors to make meaningful, confident choices by:

1. Making decisions easy: Offering different donation levels takes out the guesswork and helps new and recurring donors successfully navigate the giving experience.  
2. Spotlighting the impact: Linking gift amounts to specific items, activities, or outcomes helps donors see exactly how their support makes a difference.
3. Building trust: Being transparent about the types of activities you fund — and what they cost — reassures donors that their money is being used effectively.

Together, these elements help nonprofits create a giving experience that feels clear, trustworthy, and rewarding.

Reasons to use donation tiers

All of these elements make donation tiers a powerful tool in the fundraising process. Not only do they increase donations, you can also use them to increase the value of individual gifts. This is especially true for recurring donors, where strategic, customized giving levels not only encourage recurring giving, they can also move people up the donor pyramid.  

How to create donation tiers 

When you’re creating donation tiers, the more careful and considered your levels, the more effective they will be. Don’t just pick random amounts and hope for the best. Use your fundraising and operational data to create thoughtful prompts that inspire people to give generously. 

Step 1: Review your donor data

Wherever possible, it’s important to base your final giving levels on evidence and learning. Use your fundraising CRM to dig into past donation data and find your average donation amount. This number can work as a basis to establish a realistic donation range that reflects your donors’ giving habits. 

Top tip: If your average donation amount feels a bit high, it may be skewed by a few one-off, high-value gifts. Run a comparison to find your median (middle) or mode (most common) gift amounts — you can use these figures to create more realistic donation tiers if needed.

Step 2: Dive into your program budgets

It might sound obvious, but each and every ask must be rooted in actual numbers. Work with your program team to review your project budgets and identify tangible items, activities, or outcomes that will appeal to your donor base. Look at the costs involved and use them to calculate clear, meaningful asks that capture the hearts and minds of your supporters. 

Top tip: If you’re struggling to find smaller amounts, why not break larger, big-ticket items into small pieces? For example, if you’re running a capital campaign to equip a new hospital ward, $100 might not buy a whole piece of equipment, but it could contribute toward a flagship item. 

Step 3: Write a clear, powerful ask

The best asks and most compelling descriptions are short and sweet. Avoid jargon and use simple sentences that clearly explain the benefit and impact of each donation amount. 

Top tip: Take care with your wording. If you’re running an unrestricted campaign, it’s fine to use indicative costs and examples — just be transparent and make sure donors know that their gift will be used where it’s needed most.

Step 4: Leave space for a custom amount

Don’t be so prescriptive in your donation tiers that donors can’t personalize their giving. Including an “Other” option allows people to give more (or less) than your suggested amounts. This adds much-needed flexibility and empowers donors to choose the value that feels right for them.

Step 5: Customize your asks for different donor groups

No two groups of donors are the same, and your donation tiers should reflect that. 

For example:

• On more general donation forms, your average donation amount should sit in the middle of your tiers. This keeps the bar from falling too low and encourages people to give generously. No one likes to look cheap, and most people will feel inclined to choose the middle or a higher option. 

• For cold appeals, consider your average a little higher up the chain. This lowers the bar to giving, and makes it feel more accessible. Once someone has given and trusts your nonprofit, you can start introducing higher donation tiers. 

• For potential high-value givers or major donors, try setting your average donation amount as the lowest tier, and build upwards from there. This creates a natural sense of progression and signals that higher contributions are both welcomed and expected.

Top tip: Want to find out more about segmenting your donors? Check out our Donor Segmentation Guide. 

Step 6: Test and refine

Donation tiers aren’t set in stone. Look at what your fundraising data is telling you. If response rates are low, it could mean that your giving levels are set too high. Similarly, if a particular campaign or group of donors are performing well, it might be time to nudge your amounts upwards. 

Top tip: If you’re creating donation tiers, why not try A/B testing different versions? Test one variable at a time, such as the number of options, or suggested amounts, to see what drives the best response. 

Optional extra: Name your donation tiers

Every donor likes to feel part of something special. Naming your tiers — for example, “Supporter,” “Champion,” or “Hero” — helps build a sense of belonging. This simple move can turn donors into members of a community united by a shared social goal. 

Top tip: Getting creative with your names and levels is a great way to add some personality and help your brand and ask stand out from the crowd. 

Frequently asked questions:

Even with a solid plan in place, it’s natural to have questions about how donation tiers work in practice. Below are some common questions, along with simple, practical answers to help you put these ideas into action.

How many donation tiers should we offer?

The sweet spot is three to five. Personally, I’m a fan of the “rule of three” (plus an “Other” amount). That’s because our brains are wired to recognize and retain patterns — and three is the smallest number that creates a complete, satisfying pattern. 

How do we determine the best donation amounts?

We’ve already discussed the importance of using past donations and fundraising data to find your average donation amount, or most common, gift amount. Use this as a starting point, but don’t be afraid to test different options. It doesn’t matter if you don’t find “the best” donation amounts straight away. What matters is that you learn from your data and continuously evolve your strategy upwards. 

What do we link donation tiers to?

In my experience, donation tiers work best when they’re linked to a specific item, activity, or outcome — this all helps build your case for support and encourages donors to visualize the difference their gift is making.

Do donation tiers work for recurring donations?

Of course. Not only can donation tiers encourage recurring donations, but tiered levels can also make it easier to upgrade donations. By gradually raising the giving bar, you can nudge supporters into higher tiers and increase their lifetime value.  

Should I be creating donation tiers for my online donation page?

There’s no hard and fast answer to this one, but for their website, most nonprofits opt for giving tiers without the description, or include examples of gifts and quotes from existing donors (social proof) as part of their core website copy. That’s because a donation page has to serve multiple functions, and offering narrow descriptors can start to feel restrictive. 

Using donation tiers in other areas of giving

About more than individual giving, one of the great things about donation tiers is that you can use them for other areas of fundraising, too. For example:

Trusts and foundations: If you’re creating application templates for smaller family foundations (up to around US$5,000) try including a “shopping list” of higher-value options rather than a single lump-sum ask. 

Where a large ask or small contribution to a bigger project might be off-putting to some, offering a selection of tangible giving options makes it easier to engage donors who are new to your organization, or can only make smaller grants. You never know, if they’re impressed with your reporting, you might even get a repeat donation. 

Corporate givers: Named donation levels are an excellent way to present a clear, tangible ask to potential corporate partners. You can also use them to align donation amounts with different forms of special recognition — for example, displaying their logo, featuring them in event materials, or offering opportunities for staff engagement. 

This not only sets clear expectations and builds transparency but also lays the groundwork for a constructive, mutually beneficial partnership. One that encourages companies to scale up their support in return for greater impact and brand exposure.

Examples of donation tiers in action 

While you’re most likely to find donation tiers and descriptors in fundraising campaigns and appeals, we’ve hunted out a few live examples to inspire your work. 

Duke Children’s Hospital: We love the donation tiers used as part of the Hospital’s “Heroes for Hope” regular giving community. Instead of offering a simple monthly amount, multiplying each gift option by 12 encourages donors to think about the long-term impact of their work, with the links to different pieces of equipment creating real incentive to give. 

$15 x 12 = $180 which can purchase an infant soothing seat for the Neonatal Intensive Care Unit!

Girls Who Code: We love how the team have got creative and used donation tiers to move beyond individual giving and inspire community fundraising efforts — with each descriptor providing a very clear example of activities and impact. 

$1,000 = Support a Girls Who Code Club for the entire school year. Help inspire, educate, and equip young women with the computing skills needed to pursue 21st century opportunities.

Final thoughts 

Like what you see? Donation tiers can be a powerful way for nonprofits to maximize the impact of different campaigns and help achieve their organization’s fundraising goals. Whether you’re looking to recruit new donors, inspire recurring donations, or encourage higher-level giving, don’t be afraid to get creative and explore different levels and options.  

Just remember to link your tiers to tangible items, activities or outcomes, and be sure to send a personalized thank you letter once someone has donated!

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