August 01, 2023

Why Monthly Recurring Donations Are Important For Your Nonprofit?

Why Monthly Recurring Donations Are Important For Your Nonprofit?

Little drops of water make the mighty ocean.” - If someone asks us why a monthly giving program matters for a nonprofit, we love using this famous quote. Because the monthly giving program or recurring donation process for a nonprofit is like those little drops of water that come together to create a mighty ocean. 

Each small, regular donation from a caring supporter may seem modest on its own, but when combined, it becomes a powerful force for change. Just like the ocean, the impact of these monthly contributions is vast and far-reaching for the nonprofit. It helps carry out its missions and make a real difference.

In this blog, we tell you why a monthly giving program matters and how nonprofits stand to gain from it.

What is a monthly giving program?

A monthly giving program in fundraisers is a donor initiative where individuals pledge to make regular, recurring donations to a nonprofit organization or charity. Instead of making a one-time contribution, donors commit to giving a fixed amount on a monthly basis. 

The cumulative effect of these regular contributions can significantly enhance the nonprofit's ability to plan and implement its projects, making it a beneficial strategy for both donors and the organization.

Why are monthly donations important for every nonprofit?

Have you ever wondered why monthly donations are so important for every nonprofit? Does having a bunch of loyal supporters who come by every month to help the nonprofit really matter? Yes, monthly donations are like a steady stream of goodness that keeps the nonprofit’s mission going strong and improves its donor retention rates. There’s more to it than just a predictable and reliable income.

5 reasons why a monthly giving program benefits a nonprofit

It wouldn’t be wrong to say that monthly giving programs are like superheroes for nonprofits. Let’s find out the reasons here. 

  1. Steady source of income
    It’s definitely a big relief for nonprofits when they know that they will receive a steady source of monthly income from recurring donations. It allows them to plan their activities and budget with more confidence.
  2. Higher giving potential
    A one-time gift of $1,000 or a small monthly donation of $100 - Which is better? At first sight, you may think that a $1,000 one-time gift is better. But if you do your math properly, the cumulative effect of small monthly donations can add up to a larger total contribution over time compared to one-time gifts.
  3. Cost-effective fundraising
    It is a well-known fact that the cost of acquiring new donors is higher than retaining existing donors. And a nonprofit doesn’t have big budgets to try and keep acquiring new donors. Running a strong monthly giving program can help reduce the need for constant donor acquisition efforts. It requires fewer resources and effort to maintain an ongoing relationship.
  4. Improved donor retention
    A monthly giving program can boost your donor retention as it allows donors to gradually connect with the mission, leading to longer commitments to the cause. This results in higher donor retention rates over time.
  5. Enhanced donor engagement
    Acknowledging the monthly donation gives nonprofits an opportunity to update donors on the impact of their contributions. This allows for deeper engagement and fosters a sense of connection for the donors with the nonprofit’s mission.

5 reasons why a monthly giving program benefits donors

We have mentioned how a nonprofit can benefit from a monthly giving program. But what use is it for the donors? There may be reasons why a donor is also inclined to join a nonprofit’s monthly giving program. Let’s see.

  1. Convenience and budget

    Similar to investments, we would all love to spread our contributions across manageable monthly installments. This strategy makes it easier to support the cause without straining the donor’s finances. 
  2. Sense of continuous impact

    Isn’t it a great feeling to constantly remind yourself that your regular contribution is making a difference? Donors experience the satisfaction of making a consistent, ongoing difference with the monthly giving program, knowing that they are continuously supporting the nonprofit’s work.
  3. Reduced hassle

    Instead of having to regularly scout for good nonprofits and then make payments each time, donors find it easier to enroll in a monthly giving program. This streamlines their giving process and saves time by avoiding the need to repeatedly make individual donations. 
  4. Deeper connection to the cause

    A donor would love to see the impact of their contributions. A one-time fund doesn’t give them an opportunity to connect deeply to the cause. But when donors receive regular updates on the impact of their monthly giving contributions, it fosters a stronger emotional connection with the nonprofit’s mission.  
  5. Opportunity for long-term giving

    Monthly giving provides an avenue for long-term philanthropy, allowing donors to sustainably support causes they care about over an extended period.

Recurring (monthly) donations vs. One-time donations

By now, you might be clear about the impact a monthly giving program can have for a nonprofit as well as a donor. We’ll help you even better by listing the differences between monthly giving programs and one-time donations in a tabular format.

Recurring Donations One-Time Donations
Small donations are given regularly, like every month. One-time donations are given at a specific time.
Helps nonprofits plan and budget for the future more effectively. Can be unpredictable for nonprofits, affecting their long-term plans.
Builds strong and lasting relationships between donors and the nonprofit. May not establish a long-term connection between donors and the nonprofit.
Allows donors to give a smaller amount each time, making it easier on their wallets. Donors give a larger sum at once, which may have a more immediate impact on their finances.
Provides a steady income stream for the nonprofit, supporting its mission consistently. Income can fluctuate, and nonprofits may need to rely on other fundraising methods.

Best practices for setting up a monthly giving program

Now that you know the benefits of a monthly giving program for nonprofits and donors, let us quickly get you through some of the best practices to set up your recurring donation process.

Craft an irresistible ask

Define your monthly giving appeal in a clear and compelling manner. Make donors feel like superheroes by explaining how their ongoing support will have a significant impact on the cause they care about.

Create a catchy monthly giving program brand

Give your monthly giving program an awesome name and visual identity that resonate with your organization's mission. A strong brand will make your program stand out and be more memorable to potential donors.

Tech up with fundraising software

Choose the right fundraising software that can handle recurring donations efficiently and securely. Custom fundraising software like GivingX can ensure seamless processing and donor management for your monthly giving program.

Optimize the donation page

Make your donation page user-friendly and visually appealing. Highlight the monthly giving option prominently and ensure a smooth and hassle-free donation process.

Set up a tiered monthly giving program

Set up a tiered monthly giving program with different donation levels and benefits to cater to diverse donor preferences. This approach encourages increased giving, fosters a sense of belonging, and shows appreciation for each donor's commitment to your cause.

Tell the story of impact

Clearly explain to donors how their monthly contributions will create a lasting impact on the cause. For instance, instead of just $25, $50, and $100 tiers, explain how each level can transform the lives of the beneficiaries.

  • Your $50 monthly contribution can feed 1 family for a day.
  • Your $100 monthly donation can feed 1 hungry mouth for an entire month.
  • Your $500 monthly donation can help 1 family for a month and ensure they don’t go to bed hungry. 

Track progress

Display real-time progress toward your monthly giving goal on your website or social media platforms. This creates a sense of urgency and encourages potential donors to join the cause.

Promote your program

Use various channels like fundraising emails, social media, and events to promote your monthly giving program. Engage with potential donors and keep them informed about your initiatives.

Upgrade existing donors

Send fundraising emails to encourage your one-time donors to become monthly supporters by highlighting the benefits of consistent giving and the added impact it will create.

Corporate matching programs

Approach corporations for matching gifts, where they contribute an amount equal to their employees' monthly donations. This partnership can amplify your program's reach.

Monthly donor drive

Organize special campaigns or events dedicated to attracting new monthly donors. Use creative strategies to capture their attention and encourage sign-ups.

Build a supportive community

Foster a sense of belonging among your monthly donors by creating an online community or forum where they can connect, share stories, and feel appreciated.

Recognize and reward

Show gratitude and appreciation to your recurring donors regularly. Regular updates via fundraising emails, personalized thank-you messages, special shout-outs, or small tokens of appreciation can go a long way in building loyalty.

Wrapping Up

A monthly giving program is a powerful tool to foster strong donor connections and boost donor retention.

With GivingX's custom fundraising software, setting up recurring donations on donation pages becomes seamless and user-friendly, empowering nonprofits to make a lasting impact on their causes. Embrace this opportunity to create meaningful relationships with donors and collectively drive positive change toward your mission.