Does your organization have a monthly giving program? If so, are you investing enough in it? If not, when was the last time you explored the opportunity?
I ask because creating a monthly giving program benefits both you and your donors. In most cases, there is little reason NOT to invest in a recurring gift program.
You have a lot going on, I know, so I don’t recommend adding another thing to your to-do list lightly. But monthly recurring gifts can transform your fundraising. The dividends of your hard work will pay off exponentially.
Let’s start with the basics. What is a monthly giving program?
A monthly giving program is a system that empowers donors to automatically donate to an organization every single month. They set it and forget it.
Some organizations refer to it as recurring giving or regular giving. Others call it a sustainers program or committed givers program.
Donors love monthly giving because they can support causes they love without hassle.
Organizations love monthly giving programs because a) they create steady cash-flow and b) promote donations that are predictable and regular.
Erica Waasdorp literally wrote the book on monthly giving. Erica talks about how monthly giving is a perfect example of donor centricity. These types of recurring giving programs make it easy for donors to give. They can pick a donation amount that fits their budget. They can help a cause they care about in a way that makes a real difference for the people in charge. They can join an exclusive club.
Here are some quick facts about monthly giving:
- Consider that a monthly donation program can cultivate younger donors – 52% of millennials say they are interested in monthly giving as a means to give back in a meaningful way.
Younger donors want to have systemic impact. They want to understand how their donations help the organization. When they give monthly, they know that they are providing the core support that empowers you to make financially smart decisions.
- Consider that monthly donors tend to stay around longer – Donor retention shoots up from roughly 45% to 64%.
While it’s true that you need trust and loyalty from donors for them to sign up to a monthly giving program, it’s also true that giving a recurring gift builds trust and loyalty. It’s a chicken-and-the-egg situation. But if you can convert donors into automatic, recurring donors, they will innately feel closer to your cause.
- Consider that monthly donors give more – The average single gift online is $96; the average monthly gift is $288.
Part of the draw is psychological. (For example, “For the cost of one cup of coffee a week, you can join an inner circle of support.”) Part of it is financial (because $20/month legitimately is more manageable than $240 in one shot). The bottom line is that you will raise more by encouraging recurring gifts.
So how can you launch a successful monthly giving program?
Here are the most important milestones you need to hit for a successful monthly giving program:
- Commit to it. If you aren’t willing to invest the time and energy into launching and promoting a recurring gifts campaign, it simply will not work.
- Come up with a good name that tells donors they are special heroes for joining.
- Review your payment processor options.
- Add a prominent monthly-giving option on your donate page.
- Create a special campaign for your lower-tier donors to join the monthly giving circle.
- Create the Ask, the Thank You, and the Landing Page for the campaign.
- Ask, ask again, ask again.
- Enjoy your new monthly donors. They are likely to be younger, likely to stay with you longer, and likely to give more than they otherwise would!
If you’re interested in learning more about a monthly giving program, please contact a CauseMatch expert today. We would love to brainstorm with you and explore opportunities for you to fundraise smarter and to incorporate monthly giving into your fundraising strategy.