- Increases funds
According to Network for Good’s donation data, the average recurring donor will give 42% more in one year compared to those who give one-time gifts. Data also shows that the average monthly online donation is $52 (translates to $624 annually) compared to the average one-time gift of $128. Furthermore, monthly donors have a higher lifetime revenue per donor, while 52% of millennials are highly likely to donate monthly compared to giving a large one-time donation. This shows that monthly giving programs have a higher return on investment compared to one-time donations.
- Helps nonprofits budget
Although unexpected donations are good, monthly donations allow nonprofits to have some consistency in individual contributions. This means that a nonprofit will not have to spend too much time searching for new donations to fill the budget deficit. Instead, they will know that there is a specific amount expected from certain individuals or donors. As seen in Network for Good’s Donation data, monthly donors are consistent, and their donations offer equal returns as that provided by large one-time gifts. Monthly donors help charities save time and money.
- It is convenient for donors
Recurring giving allows donors to include charitable giving in their budgets without affecting their budgets. Giving as small as $10 each month is palatable than donating a one-time $100 once on Giving Tuesday. Therefore, paying a small amount monthly to a cause with other bills via a credit card makes it a culture. As such, the donor does not have to regret having forgotten to visit a favorite charity semi-annually.
How to create a recurring monthly giving program
As a nonprofit, you might already have a monthly giving program set up. If you are considering starting one, here are some best practices and tips that might help.
- Develop a donor-centered plan
The key to having a successful monthly giving program is thinking about the donor and writing a donor-centric plan. To attain this, you have to think strategically by considering the goals of your recurring monthly giving program. Make the donors understand how they fit into the program. Also, set goals that you want to achieve with your monthly giving and think about the program name that will make it unique.
- Brand the program
Giving a name to your monthly giving program will strengthen it and give it some identity. This will show your donors that they are part of something.
- Find out people to approach
You cannot just come up with a plan and name it without approaching people. As such, you need to identify potential willing donors to participate in your monthly giving program. Look at your existing donor database and identify people you think might be willing to donate monthly.
After successfully developing the program, try reaching more people through promotion. It does not matter how good your program is. If not promoted to reach the willing donors, it will end up failing in the end. Also, show the program on your official website and invest in a proper donation processing system. After receiving donations, show the impact it has had on society.