If we’re being honest, nonprofits often seem like miracle workers. They execute high-impact initiatives with limited resources, stretch budgets beyond imagination, and transform communities worldwide. But at the heart of every thriving nonprofit is one key factor: reliable funding.

Here’s a fun fact to chew on before we dig in. According to DonorPerfect, monthly donors give 42% more annually than one-time donors. That’s a big deal! Recurring giving programs provide stable funding, enabling nonprofits to plan further ahead, reduce fundraising costs, and focus on what matters most—their mission.

This guide will explore why monthly giving is a game-changer, strategies for building and promoting a monthly giving program, and expert suggestions for keeping your recurring donors engaged. If you’re ready to elevate your nonprofit’s fundraising strategy and financial stability, read on!

Why Does Monthly Giving Matter?

Monthly giving programs, also known as recurring giving programs, represent a nonprofit’s secret sauce for achieving long-term financial stability. Here are the three reasons why monthly donors are worth their weight in gold.

1. Stable Income Stream

With a consistent monthly contribution from supporters, nonprofits can avoid the stress of feast-or-famine funding cycles. Recurring donations allow organizations to make long-term plans, hire highly skilled staff, and allocate funds more effectively.

2. Increased Donor Lifetime Value

Recurring donors give more over time than their one-time gift counterparts. A one-time donor may contribute a gift amount of $50 and disappear, but a recurring donor might give $20 monthly, totaling $240 annually. Better yet, they’re more likely to stick around, thanks to the relationship you’ll build with them.

3. Lower Fundraising Costs

Acquiring a new donor can cost more than seven times as much as retaining an existing one. With recurring donors, nonprofits reduce the need for constant outreach and costly fundraising campaigns, improving the overall cost-to-donation ROI.

What Are the Benefits of a Monthly Giving Program?

Besides predictability and increased funding, monthly giving programs bring a host of benefits. Here are a few worth mentioning.

Enhanced Donor Engagement

New monthly donors stay more connected to the organization. Engagement touchpoints (like impact updates) turn them into loyal champions.

Simplified Donor Journey

Providing flexible donation options, such as secure platforms and credit card automation, makes giving a seamless experience. The fewer barriers, the better.

Community Creation

A branded monthly giving program for a nonprofit organization fosters a shared sense of purpose and belonging among donors, encouraging long-term commitment.

Tax-Deductible Perks

Smaller monthly contributions, spread out over the year, are often more appealing to donors who want to give tax-deductible gifts without feeling a big dent in one month’s budget.

Now that we’ve sold you on the why, it’s time to tackle the how.

Setting Up a Successful Monthly Giving Program

Building a monthly donation program requires intentionality, strategy, and the right tools. Start with these key steps.

Define Objectives

Set clear and measurable goals. Ask yourself:

How many monthly donors do we want to acquire in the first year?
What’s the desired average monthly donation amount?
What specific projects or programs will these funds support?

Outlining these objectives will ensure your team stays aligned, and it will give your donors something concrete to rally behind.

Choose the Right Platform

Selecting user-friendly donation tools is mission-critical. Platforms like Donorbox, Fundraise Up, and Classy are excellent options for fundraising. Look for features like:

Recurring payment processing
Mobile-optimized donation forms
Customer relationship management (CRM) platforms integrations for donor management
Secure payment systems for credit cards and online donations

Need help deciding? One nonprofit leader said Donorbox’s impact calculators sealed the deal for them. Little things can make a big difference!

Optimize Your Donation Page

A clunky giving page is a guaranteed “nope.” To win trust and conversions, your donation page should:

Be visually appealing and mobile-friendly.
Clearly explain how monthly contributions will make a lifesaving impact.
Feature suggested donation amounts (e.g., $25 for meals for five families).
Offer flexibility to change or cancel giving options without hassle.

Pro tip: Run A/B tests to find the layout and messaging that best connect with your donor base.

How Can Nonprofits Encourage Recurring Donations?

Tell Compelling Stories

Emotion is the simplest way to engage potential donors. Share powerful, personal stories highlighting the tangible impact of donations. For example:

How a recurring donor’s contributions provided daily meals for a homeless shelter
A family testimonial explaining how ongoing donations helped them gain access to clean drinking water

Adding photos or videos to storytelling? Chef’s kiss.

Offer Donor Perks

Give your recurring supporters something to smile about. Perks could include:

Exclusive access to live webinars
VIP invites to events hosted by the organization
Behind-the-scenes updates for monthly supporters
Branded thank-you bundles (think mugs or tote bags!)

Keep it fun, keep it personal, and make sure every touchpoint reinforces how valuable they are to your organization.

Create Community

Give your program an identity to make donors feel connected to something bigger. Names like “The Sustainers” or “Together We Rise” convey the message that they’re part of a team creating meaningful change. Use newsletters, social media shoutouts, or annual donor recognition events to celebrate their contributions.

Strategies for Promoting Your Monthly Giving Program

To maximize the potential of your monthly giving program, you need to communicate the benefits effectively and make it super simple for supporters to join. Here’s how.

Leverage Email Marketing

Segment email lists to target one-time donors who may be open to converting to monthly contributors. Highlight these benefits:

Ease of giving
Recurring donations’ impact compared to one-time donations
Worry-free, automated contributions (no monthly reminders required!)

Don’t forget to sprinkle testimonials from current donors throughout your campaigns.

Make your social feeds burst with happy energy! Share posts, Stories, and videos showing real examples of the work monthly donors help fund. TikTok montage about a rebuilt school? Yes please! Partner testimonials on Instagram? Sign us up.

Don’t forget to encourage likes, shares, and tags!

Run a Dedicated Campaign

Consider a month-long giving campaign that focuses exclusively on converting one-time donors into monthly supporters. Tactics could include:

Matching gift incentives (e.g., “Every new monthly gift matched for the first 3 months!”)
A countdown theme for urgency (e.g., “30 Days to Build 300 Monthly Donors”)

Stewardship and Retention for Monthly Donors

Here’s an insider tip for nonprofits that want to keep recurring donors happy: show the impact of their gifts around the clock.

Personalized Communication

Donors are people, not wallets. Thank them regularly, and share updates using their provided contact info. Pro tip? Tie the data to their donation amount. e.g., “Your $10 monthly gift helped ship 780 textbooks this quarter!”

Recognize Donors

Use newsletters or events to publicly acknowledge donor contributions (always ask for permission first). A personalized shoutout might be the fuel they need to continue giving!

Show Transparency

Break down where their dollars go. Share pie charts, infographics, and relatable stories of how their monthly gifts directly drive the organization’s mission forward.

Addressing Common Concerns

Anticipate and proactively address potential questions or roadblocks to build trust with potential monthly contributors.

Payment Security: Reassure donors that their payment information is protected by best-in-class encrypted systems. Trust matters.
Flexibility Options: Remind donors that they can pause, upgrade, or modify their monthly gift at any time. No strings attached!
Demonstrating Impact: Continue to showcase the powerful, lifesaving outcomes monthly giving achieves. Need stats? Use benchmarks to illustrate your impact.

Small, Steady Investments Lead to Big, Lifesaving Impacts

Monthly giving programs aren’t just about predictable revenue; they’re about creating an ecosystem of committed supporters who believe in your nonprofit’s mission.

By setting clear goals, leveraging impactful stories, and engaging donors with transparency and gratitude, you can build a thriving sustainer program that fuels your initiatives for the long haul.

Take the first step today. Contact Big Sea for expert advice on setting up or optimizing your monthly giving program. Together, we can ensure that your goals align with your mission.

FAQs

What do you call a monthly donation?

A monthly donation is often referred to as a “recurring gift” or a “sustaining donation.” These terms underscore the ongoing commitment and consistent support from donors, which enables nonprofits to maintain steady funding for their programs and initiatives.

How should nonprofits track monthly donations?

Nonprofits should use robust donor management systems or CRMs, such as HubSpot, to track monthly donations efficiently. These tools allow organizations to automate donation processing, generate detailed reports, segment donors, and maintain accurate records. It’s also essential to monitor retention rates and donor engagement to ensure long-term success.

How does monthly giving impact a charity’s budget?

Monthly giving provides a reliable, predictable stream of income that stabilizes a charity’s budget. This consistent revenue enables better planning, resource allocation, and operational management, allowing organizations to focus less on short-term fundraising needs and more on achieving their long-term goals. Over time, sustaining donations can also reduce the costs associated with frequent fundraising campaigns.

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