[ckastner]

It depends on who you are targeting.

For users willing to donate at all, the difference between (say) $2 and $5 might not be that much. Asking for more might therefore actually maximize the return.

All other users probably wouldn't donate regardless of whether it's $1 or less, so why bother considering them in your model. (edit) Offering an $1 option would just get you 0 of these users, and possibly lower the returns of the otherwise-$5-donaters above.

[jrodthree24]

I consider it high because very few people I know are actually on it. But if it was like $10/year I would have already done it and forgot about it.

[tablespoon]

Also, maybe they have fixed costs per transaction? If they have to pay, say $0.50 per (totally made up), that would eat up 50% of a $1 contribution, but only 10% of a $5 one. It wouldn't make much sense to go through the trouble of soliciting donations if they lost too much of it to fees.