Donating to a nonprofit organization or charity is not one size fits all. Different supporters have different ideas about why they give, how often they give, and how they give. To increase the amount of funds raised, be sure to offer donation options that align with your donor’s needs and make it easy to give. Some donors prefer one-time donations, while others may prefer to give on a recurring or ongoing basis. In this article, we’ll focus on recurring giving options as part of your regular giving strategy.
In this article, we will look at:
- What is Recurring Giving
- Why Monthly Donations are so Important
- Examples of Recurring Giving Campaigns
- Setting up Recurring Donations with Giveffect
What is Recurring Giving
Recurring giving is when a donor makes regular, ongoing donations to your nonprofit. Many nonprofits offer a monthly giving program, also known as a monthly giving society or circle. In this type of giving program, supporters sign up to automatically donate a specified amount to an organization on an ongoing basis. There is no end date, and donations typically occur on a monthly cadence. This type of donation is similar to streaming services like Netflix. A rise in this type of membership or subscription model has primed supporters to make monthly commitments.
And it’s a growing trend with growing results, according to NP Source.
- 45% of donors choose to enroll in a monthly giving program.
- The average monthly online donation is $52 ($624 per year), which is much more than the average one-time gift of $128.
- 52% of Millennials are more likely to give monthly over a large one-time donation.
Why Monthly Donations are so Important
While every nonprofit appreciates one-time and unexpected donations, regular and recurring donations allow a nonprofit to rely on consistency when it comes to individual contributions. Consistency helps nonprofits to plan and forecast.
There are many benefits to your donors subscribing to your monthly giving program.
- Reliable recurring revenue and easier financial forecasting: Many organizations find that monthly giving programs are a source of reliable financial support. Once these programs are set up, they only take minimal administrative work to keep them running.
- Increased supporter loyalty and stronger donor base: Monthly giving programs help nonprofits cultivate a strong long-term relationship with their supporters. This also typically leads to reduced churn and better supporter retention. Better supporter retention leads to less time to pursue new donors to reach financial goals each year.
- Increased Lifetime Value: Additionally, monthly donors typically give more in the long run because there isn’t a set end date. According to AFP, donors who set up recurring donations give 42% more annually than one-time donations.
- Higher supporter engagement: Donors contributing monthly to your mission are likely to engage in other ways too. For example, they may attend your events or volunteer their time or skills.
- Easier financial forecasting: With at least a portion of your revenue coming in consistently throughout the year, you’re able to forecast more accurately where your funds are coming from, how much you expect to receive, and what you need to do to reach specific fundraising goals.
Benefits for your supporters
In addition to the benefits for a nonprofit, consider implementing special benefits for your monthly recurring donors. Benefits for your monthly donors may include special access to things like exclusive discounts to annual events, special giving society-only events, and more. This benefit will make your donors feel appreciated and stay engaged in different ways throughout the year. This type of donor may also donate more to support special projects or programs on top of their planned gift.
Examples of Recurring Giving Campaigns
A great example of a recurring giving campaign is one that was held by Hope 4 Youth.
This campaign used pricing messaging to illustrate the impact of common or suggested recurring giving amounts, for example, “$50 buys uniforms (like scrubs) or footwear (like boots) required for some jobs available to the youth we serve”.
These descriptions help the donor visualize the real-world value of their donation, which makes the donor more likely to donate.
When donors visit the donation checkout page, they can select the type of donation they want to make, including a variety of preset giving tiers in terms of costs and frequency.
The preset suggestions alone can lead to more donations. University of Michigan researchers found that donor tier presets increased average contributions by 12 percent. But combine that with monthly giving options, and it gives you the best possible outcome.
These giving options aren’t only monthly, though. Donors can give at a variety of times that the donor can select, including weekly, bi-weekly, monthly, bi-monthly, quarterly, annually, and more.
Alternatively, donors can set up a “pledge” based on a total dollar amount that can be broken up into payment installments. Pledges are slightly different than monthly recurring giving. They are a commitment to donating a set amount over a set period of time. Pledges typically have an end date, and payments are not processed automatically. Instead, donors are sent invoices with links to process the payments.
Giving your donors options allows them to give in the way they want to and is easiest for them. They can set their own terms, and it’s an easy system that allows them to quickly and easily set up exactly the type of giving they want. One time and they’re done.
Setting Up Recurring Donations with Giveffect
Create your donation page and checkout flow in Giveffect, just like Hope4Youth. The tools in Giveffect make it easy to create and customize your campaign based on your needs and goals, including donation tier amounts.
Learn more about donations in Giveffect:
Learn more about you can implement recurring donations as part of your fundraising strategy to raise more funds. Schedule a demo with Giveffect.