Small but mighty” is a phrase we’ve seen applied time and again to describe something that seems too little to notice but that packs a wallop when it comes to impact. A boy named David fells giant Goliath with a single stone. An ant moves a rubber tree plant. The electrons of two hydrogen atoms bond with an oxygen atom, creating life-giving water.

A small funder makes a philanthropic investment that changes the world.

It’s entirely possible. Unfortunately, the thing that most frequently holds small funders back is their own belief that they’re too small to make a big difference. In fact, small funders are often well positioned to be the catalyst or linchpin that launches true and lasting change.

Nonprofits such as Kiva are creating opportunities for people around the world by asking people to lend (not donate) as little as $25. This small amount (or microloan) goes toward entrepreneurs all around to world to help pull them out of poverty and create a better future for themselves and their communities.

Why are these small donors so mighty? Here are three good reasons:

  1. First, small funders typically serve smaller geographic locations in which they build the strong relationships necessary for lasting impact.
  2. Second, small funders can be more nimble and responsive than larger ones that are hamstrung by bureaucracy.
  3. Third, small funders can be more comfortable when it comes to taking risks.

Read the full article about small donors by Kris Putnam-Walkerly at Putnam Consulting Group.