Recurring giving is a crucial aspect of sustaining a nonprofit cash flow. To encourage donors to make regular donations, you should build strong relationships with your supporters, provide clear and compelling messaging about your impact, offer convenient donation options, and express appreciation for ongoing support. Technology and automation tools can streamline the recurring giving process and help nonprofits stay connected with donors. In today’s podcast, Erica Waasdorp from A Direct Solution and Stephen Halasnik from Financing Solutions discuss how to get recurring for your nonprofit.
Summary
How to Get Recurring Giving for Your Nonprofit
Nonprofits often rely on donations to maintain operations and support their causes. However, one-time donations can be unpredictable, making it difficult for nonprofits to have a reliable cash flow and plan for future programs. That’s where recurring giving comes in. Recurring donations, also known as monthly donations, provide a stable source of income for nonprofits and help them plan and budget for their programs and activities. In this article, we’ll explore some tips for getting recurring giving for your nonprofit.
Developing a great monthly giving program is a great investment that will tremendously impact your organization’s long-term financial health. In this article, we’ll explore some tips for getting recurring giving for your nonprofit.
What is Recurring Giving for Nonprofits?
Recurring donation refers to a fundraising strategy in which you regularly ask donors to donate to your nonprofit organization. Instead of making a one-time donation, donors commit to donating a fixed amount of money monthly, quarterly, or annually.
Recurring giving is beneficial for nonprofits because it provides a predictable and steady stream of revenue, which can help them to plan and budget more effectively. In addition, it also helps to deepen the relationship between the donor and the nonprofit as donors become more invested in the organization’s mission over time.
Recurring donations can reduce the fundraising costs associated with acquiring new donors, as existing donors are likelier to continue giving than new donors. According to Network for Good, while new donor retention rates average less than 20%, monthly giving programs have a retention rate of 80% after the year and over 95% after the fifth year.
Nonprofits can encourage recurring giving by offering incentives such as exclusive content, recognition on their website, or special events. They can also simplify donations by offering automatic billing or reminder emails.
Are Recurring Giving Important for Nonprofits?
Experience has shown that recurring donations can be essential for nonprofits’ funding. It helps provide a steady and reliable funding source to nonprofit organizations, helping them plan better and properly budget their programs.
What is more, recurring donations can also help to build long-term relationships between donors and nonprofits. By committing to give regularly, donors become more invested in the organization’s mission and feel more connected to the works of your nonprofit, leading to increased engagement and support over time.
Furthermore, recurring donations allow nonprofits to reduce their fundraising costs. Since these donations are given automatically, nonprofits do not have to spend as much time and money soliciting new donations, helping nonprofits focus more resources on their programs and services.
Why are Recurring Donations Better than One-Time Donations?
Recurring donations have several advantages over one-time donations. Here are some of the reasons why you should consider recurring donations:
- Steady support: Recurring donations provide a steady and predictable income stream for non-profit organizations, allowing them to plan and budget for future activities and programs.
- Increased lifetime value: Recurring donors tend to give more over the long term than one-time donors. This is because recurring donations are often made in smaller increments, which can be more manageable for donors but can add up to a larger total over time.
- Convenience: Recurring donations are often more convenient for donors because they don’t have to remember to make a donation each time they want to support a cause. This can make it easier for donors to stay engaged and continue supporting a cause over the long term.
- Higher retention rates: Recurring donors are more likely to continue supporting a cause than one-time donors. This is because they have already committed to supporting the cause and have demonstrated their loyalty by making multiple donations.
- More cost-effective: It can be more cost-effective for non-profit organizations because they require less marketing and fundraising efforts to maintain. This can free up resources to invest in other important activities and programs.
How to Ask for Recurring Donations?
Asking for recurring donations can be an effective way to secure consistent support for your cause or organization. Here are some tips on how to ask for recurring donations:
- Explain the value of recurring donations: Make sure donors understand the impact of their ongoing support. Tell them that recurring donations give your organization the stability it needs to continue its work.
- Make donating easy: Provide a simple and streamlined process for setting up recurring donations. This could include an online donation form or a direct mail response card.
- Provide multiple donation options: Give donors the flexibility to choose their preferred donation frequency and amount. Consider offering monthly, quarterly, or annual giving options.
- Use persuasive language: Craft a compelling message that inspires donors to support your cause continuously. Use emotional appeals and storytelling to connect with donors and demonstrate the impact of their recurring gifts.
- Follow up and express gratitude: Once donors have set up their recurring gifts, follow up regularly to keep them engaged and informed about your organization’s work. Additionally, express gratitude and appreciation for their ongoing support to make them feel valued and motivated to continue giving.
Learn About Our Guest
Erica Waasdorp wrote the popular book Monthly Giving, The Sleeping Giant, and her second book Monthly Giving Made Easy, came out in mid-2021. She created the Monthly Donor Road Map and several e-books, including the Top 7 Questions about Monthly Giving, the Monthly Donor Retention Play-Book, and more. Erica is a Master Trainer for the Association of Fundraising Professionals and the former International Fundraising Congress US Ambassador.
Learn About Stephen Halasnik
Stephen Halasnik is the host of the popular Nonprofit MBA Podcast. The Nonprofit MBA podcast aims to help nonprofit leaders and their teams. Stephen is the Co-founder and Managing Partner of Financing Solutions, a leading provider of loans for nonprofits in the form of a Line of Credit. Stephen is a best-selling Amazon author and a leading authority on building great, purpose-driven businesses.
Stephen lives in New Jersey, and his top life mission is to raise his two sons, Michael and Maxwell, to be good men