What’s easier to achieve and more convenient for your nonprofit organization – getting larger one-time gifts, or implementing a monthly giving program?
How to Create a Monthly Giving Program That Works
According to this infographic from The Nonprofit Hub, you should definitely consider monthly giving as it comes with multiple benefits:
- It improves donor retention: the average monthly giving program keeps 7 out of 10 new donors for at least an year, while the average nonprofit loses 7 out of 10 new donors after their first donation
- Even if monthly gifts are smaller (an average of $19 compared to $60 for one-time donations), annual contributions for monthly giving programs are higher ($19 x 12 = $228)
- 33% of monthly online donations are attributed to email fundraising, which is one of the most affordable strategies for collecting funds
- Your nonprofit organization revenues become more predictable and you can develop an active community around your cause
Monthly giving programs have thus become one of the biggest trends in fundraising lately, especially since more and more organizations are using online tools; online giving makes recurring donations more convenient – donors just allow you to withdraw a specific amount from their credit card each month without needing to complete checks or visit your physical location.
This is great news for your nonprofit! Nevertheless, if you want to ensure your organization’s financial stability, you need to create a truly profitable monthly giving program. Here’s how:
Create your monthly giving program’s identity
Supporters will not trust you and sign up for recurring donations unless you provide them with a strong case for support.
Your monthly giving programs should have a well-defined brand consisting of a name, a logo, giving levels, donor benefits (something they’ll get in return), and a user-friendly donation form.
Allocate the necessary resources
Unless you are able to sustain it properly, your monthly giving program will be ineffective and short-lived. You’ll need to invest time in it, put a person in charge, and get technical support when dealing with denied charges or expired cards.
Identify monthly giving prospects
Do you have a number of loyal donors who give several times a year? They are very likely to sign up for your monthly giving program.
Don’t neglect smaller one-time donors either – if you instill trust and they really care about your cause, you may attract them as well.
Make donors feel like they are investors
The key to implementing successful monthly giving is making donors feel important and happy about their participation.
Show them how much you rely on them to achieve your mission and make them feel part of the team.
A very effective tactic that works with any fundraising method is highlighting what you’ll achieve with the amount people give, so tell them what money will do ($10 a month provide 1 meal a week to a hungry child, so they can continue going to school and have a better future, for instance).
Reach your donors efficiently
Just featuring the new monthly giving program on your website is not enough to set it in full motion.
You need to craft your communication strategy carefully and complete the following steps:
- Write and send a monthly giving launch appeal where you explain your case for support and show people how they can sign up
- Place calls-to-action on your website and provide complete information about the program
- Several days after sending the launch letter, contact donors again and specifically ask them to sign up
- Follow up with phone calls – although controversial, this technique has helped many nonprofits persuade supporters to sign up, and it works best with top givers. Only you can decide if your organization has the resources and manpower to do this and if the tactic suits your organization’s supporters.
Welcome new monthly donors
Monthly giving programs are not dedicated only to existing loyal donors, as they often attract new supporters as well.
Make them feel special by sending a welcome letter where you tell them how important they are for your organization and inform them on the benefits they will enjoy as recurring donors (program membership, recognition, etc.)
Integrate monthly giving with all your fundraising programs
Once you implement your monthly giving program, make the best use of it and give as many people as possible the opportunity to sign up.
It’s recommended to mention it in all your fundraising materials, add monthly giving options to all online donation forms, and talk about it during your organization’s fundraising events.
Appreciate your monthly donors
Monthly donations are a major commitment, and potential donors need to feel reassurance and gratitude in order to keep making contributions.
An excellent donor experience includes efficient customer service, fast follow-up, and creative ways of saying “Thank You”.
Would you like to ensure your organization’s long term financial stability?
This is the best time to implement a monthly giving program, as Fundlio provides nonprofits with a recurring donations option as part of its fundraising solutions!
Let’s talk about setting up a monthly giving program! Give us a call now at 1(877) 347-3172 or click here to send us a message. We’d love to hear from you!