Creating a Monthly Giving Program for Sustainable Growth

Did you know that donors that decide to give through an automated monthly giving program end up giving 42% more than if they just gave a one time gift? In fact, the average size of a monthly donor over the course of a year was $941.11. Those are some extremely impressive statistics, yet they don’t begin to demonstrate the huge amount of positives of having your own program up and running.

Organizations like Save the Children and World Wildlife Fund (their monthly donors are called WWF Heroes) have successfully implemented their own subscription based giving programs, demonstrating their effectiveness in retaining donors and building lasting relationships.

The best part is that creating, implementing and maintaining a monthly program is easy and doesn’t take all that much time. Just a little strategic planning and the right tools. This avenue of fundraising has become an important strategy for nonprofits seeking to have consistent financial support that they can rely on over time.

In addition, once you’re able to establish a successful program, you’ll be able to plan better as you know what funds will be available and when. This makes allocating resources more effective when planning budgets and addressing ongoing operational needs. This monthly donation model provides predictable revenue for your charity while making the process seamless and convenient for your donors that also build long term relationships.

Why Recurring Donations Are a Game Changer for Nonprofits and Donors

1. Higher Lifetime Value

As we stated above, recurring donors contribute more over time compared to one time donors. A one time $50 gift is great, but a recurring $20 monthly donation adds up to $240 a year which is nearly five times as much! Plus shelling out $50 may be a substantial gift for some supporters, while $20 a month feels more manageable and puts less strain on your donors.

2. Predictable Income

Having a steady source of funding helps create financial stability for your charity. Instead of guessing how much funding will come in with the typical one time gifts option, recurring donations allow your nonprofit to count on consistent support. This predictability helps your organization plan programs, hire staff, and take on bigger projects with the confidence they’ll have the funding to meet all of their financial obligations.

3. Cost Effective Fundraising

It’s far more cost efficient to retain your recurring donors than to constantly attract new one time donors. In fact, it’s often cited that donor acquisition often costs 10 to 20 times that of renewals. Plus, supporters that choose to donate monthly will often continue to do so far into the future unless their circumstances change dramatically. This means with recurring donations your nonprofit is able to spend less on outreach and donor acquisition thus freeing up funds for their actual mission as a charitable organization.

4. Easier for Donors

Recurring giving is super easy for donors. They only need to enter their payment details once, and their support continues automatically. You don’t need to continually remind them it’s time to make their donation again, nor do they need to go online to fill out your donation form each time. It’s a hassle free way for them to contribute without any extra effort for them.

5. Convenient for Budgeting

Not every donor can handle making a large donation to a nonprofit. Many individuals appreciate the convenience of smaller, more manageable contributions on a monthly basis. A monthly $10 gift feels more doable than a larger one time donation, even though the yearly total might be the same. This mental convenience encourages more people to give smaller donations monthly than one large gift even though research has found that more than 50% of your supporters that make a monthly contribution will still make additional one time contributions!

6. Stronger Donor Engagement

Recurring donors tend to feel more connected to your cause as they are supporting it throughout the year. This consistent connection makes them more likely to increase their donations over time or even make additional contributions, especially when they see the real-world impact of their gifts. In addition, the Giving Institute’s research has found that the average recurring donor sticks around for 8.08 years! Compare that to non-recurring donors, whose average donor lifetime as of 2022 was only 1.68 years. And retention rate for these individuals is 77%.

Setting Up a Monthly Giving Program for Your Nonprofit

Setting up a monthly giving program isn’t all that difficult. It just takes a little planning, the right tools, and a way to market you new gift giving option to your supporters. Below we’ve laid out each of the necessary steps and how best to accomplish each one.

1. Define Your Goals

One of the best way to determine your goals is to have a nonprofit vision statement that clearly maps out what you want your organization to achieve. What programs or services do you want to offer and what are the costs associated with them? This information can help you when describing to your support base why they should join your monthly giving opportunity. You can also look at your fundraising strategic plan for the year to see what financial goals you need to be met and when. Clear goals will guide your strategy and help measure success.

2. Choose the Right Tools

An online donation platform to manage your recurring contributions is a must, so choose wisely. Platforms like PayBee and a few others were created specifically for charitable organizations like yours and offer features such as automated donation processing, customizable donation pages, and donor analytics. These features make the donation process seamless for your supporters while also making it easy for you to set up and manage your program from one easy to use user dashboard. Great software like ours also allow you to integrate other areas of your fundraising like social media and email marketing tools easily. With all the automation available it’s never been easier to get your monthly program up and running in no time.

3. Create a Simple Signup Process

Design a user-friendly donation form that includes clear instructions, multiple giving levels, and an option for donors to select their preferred monthly amount. Keep the process short to avoid donor drop-off and fatigue. Also be sure that your form is mobile friendly, accessible from anywhere and that it is fast to load and visually appealing and easy to understand. This all may sound like a lot, but it is worth the effort in order to create a donation pledge form that resonates with your audience. As an example, take a look at the image of the Red Cross’ form. It’s simple, easy to understand and loads on any type of device. There are multiple amounts and an option for your donor to decide their own. All in all this is an excellent example of an effective monthly giving donation form.

(IMAGE – RED CROSS)

4. Develop a Marketing Plan

Without a solid marketing plan the chances of anyone actually seeing your donation form are pretty slim. And while smaller charities don’t need a hugely complex plan, the more comprehensive you can lay out your marketing strategies the better chance of success. You plan should include all your communication channels including email campaigns, social media, and your website. Highlight the benefits of monthly giving, such as the convenience and long-term impact it gives your donors. You can use real life stories and visuals to connect emotionally with potential donors so they want to become involved while also feeling as though their support is having a positive impact. In the next section we’ll go over promoting your program in greater depth, but for now, just understand this is one of the most important steps of your program, awareness.

5. Offer Incentives

Small fundraising incentives can have a big impact. You can offer individuals willing to make monthly contributions free merchandise like t-shirts or mugs with your organization’s name and logo on them. Or you can offer services, like free pet grooming if you’re an animal rescue or anything that fits your mission yet can be offered as an extra gift for your subscribers. Other examples could include exclusive updates, special recognition, or VIP seating at your next fundraiser. The idea here is to make your donors feel valued for their ongoing commitment.

6. Communicate Regularly

Build trust with your monthly donors through regular updates on your organization. Share how their contributions are making a difference with behind the scenes videos and personalized letters. Use email newsletters, impact reports, or personalized thank-you messages to maintain engagement and make them feel like they’re part of something larger and important. It doesn’t always take a lot for people to feel a part of something, and when they do they’ll often contribute for years to come. So make the effort.

7. Track and Optimize

With platforms like Paybee or CRMs you’ll be able to track pretty much any metric you wish so you’ll know exactly what is working and what needs to be improved. Measure KPI metrics like the number of individuals landing on your donation page and the number of individuals that go through the entire process of making a donation, donor retention rates, average donation size, and total monthly revenue created from your program. Once you have this type of data it’s easier to monitor your program's performance using fundraising tools and analytics and adjust your strategies based on real numbers to improve your results. This step can mean the difference between a successful program and one that never got off the ground.

By implementing these steps and leveraging tools like PayBee, your nonprofit can create a successful monthly giving program. This approach ensures consistent funding while also fostering long-term donor relationships.

Engaging and Retaining Monthly Donors

Retaining donors is far more cost-effective than acquiring new ones—often 10 to 20 times less expensive! For this reason, keeping current donors happy should be a top priority for everyone in your organization. When donors feel valued and connected to a cause they believe in, they’re more likely to stick around and contribute long term. By continuously and effectively focusing on building strong relationships and fostering loyalty to your cause, you can be sure there will always be a steady base of support for your nonprofit.

One of the best ways to create meaningful connections is through personalized communication. Address donors by name in emails and letters, and acknowledge their specific contributions and the impact they’ve made through stories, videos and other media. Automation tools like Paybee’s software platform can help segment donors based on their giving levels or interests and allow you to send tailored messages that feel relevant and thoughtful to a range of contributors all at the same time.

Just be sure to be consistent. Consistently showing your appreciation is another way of creating meaningful connections that aid in donor retention. Regularly thank donors through personalized notes, emails, or even videos. You can even give them a shout out on social media or your website. Clearly show them how their support is directly contributing to your nonprofit’s goals, helping them see their own role in your success. When donors feel genuinely appreciated, their loyalty to your organization deepens dramatically.

One of the best ways to really demonstrate how much their altruism truly matters while also keeping them engaged with your charity is to share impactful stories. Let them see the real world difference their support is making by providing updates on your projects, stories about beneficiaries, and measurable outcomes. Pair these updates with visuals such as photos or videos to further create a deep emotional connection that strengthens their commitment to your cause.

You should also consider offering exclusive benefits to monthly donors to make them feel part of something special. Perks like early access to event tickets, behind the scenes updates, or branded merchandise can create a sense of belonging and encourage continued support.

Social media is an excellent platform to connect with your supporters and engage them. You can continually share regular updates, celebrate milestones, and interact with donors through comments and messages in real time. By responding to all your comments and creating genuine conversations you can easily build a sense of community that keeps everyone involved in your cause.

And never underestimate the value of feedback. You’d be surprised what you can learn if you just ask people exactly what you need to know. Conducting surveys or asking for feedback not only demonstrates that their opinions matter, but also gives you insights into their preferences and concerns. Then when you act on their suggestions, you’re building trust in your organization and a more personalized relationship.

You can also work to recognize donor milestones such as anniversaries of their monthly contributions. This is another great way to make them feel valued. Public celebrations and recognition in newsletters, on your website, or on social media can also show how much you appreciate their continued support while also strengthening their connection to your mission.

But always be sure to be as transparent as possible. Regularly share clear financial updates showing how their contributions are being used and the impact they’ve made. This doesn’t just help to keep your nonprofit compliant, but also when donors see their money is well spent, they’re more likely to continue their support.

Finally, if a donor does at some point choose to cancel their monthly contributions, make the process simple while staying connected. Respect their decision as it may be a short term financial problem they’re experiencing, or their circumstances have somehow changed. But this may be short term so maintain communication with them and offer other ways to engage with or support your cause in the future.

Benefits of Monthly Giving Programs for Nonprofits

Monthly giving programs offer a ton of benefits to any nonprofit organization as well as their donors. For nonprofits, these programs provide stable funding which allows for better financial planning. This also allows charities to allocate their resources better so they can focus on their long term goals. This stable funding source makes organizational operations smoother and helps support sustainable growth for your nonprofit.

But it isn’t just your charity that benefits, donors benefit as well. Monthly giving offers a convenient way to contribute without your donors needing to worry about making their donation each month. This is because your donors only need to set up their payment information once, which makes the process simple for them. In addition, spreading their donation into smaller monthly payments also feels more manageable, which encourages consistent support over time.

Another important benefit is that recurring donors have a much higher lifetime value compared to one-time donors as we’ve stated before. 42% to be exact. This is due to loyal donors contributing more over months or years. And recurring donors are more likely to increase their contributions over time or give additional funding on top of their recurring payments. This also works to deepen their long-term support even further.

And since donors are locked into long term payments, this gives your charity time to build deep and lasting relationships with everyone. This ongoing relationship strengthens their trust and loyalty because when donors feel connected to your mission in a personal way, they’re more likely to remain committed and continue giving. This all leads to lower fundraising costs. Acquiring new donors can be expensive, anywhere from 10 to 20 times more expensive than keeping current donors.

Promoting Your Monthly Giving Program

Promoting your monthly giving program requires strategic marketing in order to get the word out on this new opportunity of supporting your charity. After all, if no one knows you have a monthly funding option, how would they know to sign up? But By leveraging social media, email marketing, website integration, and storytelling, organizations can effectively promote recurring donations and strengthen donor engagement. Your nonprofits needs to use clear messaging, targeted outreach, and engaging tools to build awareness and drive sign-ups. By leveraging social media, email marketing, website integration, and storytelling, your organization should be able to effectively promote recurring donations while at the same time strengthen donor relationships.

Start with Clear and Compelling Messaging

Begin by explaining why monthly giving matters to both your charity and the donor. Highlight how recurring donations create a lasting impact and consistent funding for your cause which allows you to better run your charity and make a larger positive impact on your cause. Use phrases like “sustainable support” or “steady contributions” to in your marketing materials. Keep your communications donor focused by emphasizing the convenience and the cumulative power of monthly gifts. For example, “A $10 monthly donation can provide clean water to a family year-round” is a clear, relatable example that makes the benefits of giving real for your donors.

Use Storytelling to Inspire Action

Stories are always a powerful way to connect with potential monthly donors. Start by sharing real examples of how consistent contributions can change lives. Create stories from a beneficiary point of view to help donors see the need for their contributions and the impact it can have first-hand. You can also include project updates or quotes from existing monthly donors that speak to the benefits their contributions have made. For instance, a brief video showcasing a child receiving education because of monthly gifts creates an emotional connection that motivates people to get involved and start supporting your cause.

Leverage Social Media for Outreach

Social media platforms are ideal for promoting a monthly giving program. Share impactful stories, testimonials, and progress updates to keep donors engaged on a global scale and in real time. Create posts that highlight how small monthly contributions add up over time and can have a dramatic impact. You can also include visuals like an infographic that can visually explain how $5, $10, or $20 per month makes an important difference. Then you can go further by asking your supporters to share your visuals with their friends and family, or even run targeted ad campaigns on platforms like Facebook and Instagram so you can attract new supporters. Just make sure your posts include clear calls to action such as “Sign up today to provide ongoing support.” and a donation button that stands out.

Utilize Email Marketing Tools

Email campaigns are still a very effective way of reaching your current and prospective donors. In fact, every single email you send out should include a link that takes them to your recurring program. Often non-profits will also include a link in the footer of the email with wording such as “support Us or “Make a difference today.” And for headlines, they need to grab attention! Use subject lines like “Make a Lasting Impact with Monthly Giving” or “Why Monthly Giving Matter to Everyone.” Then be sure to explain how easy it is to sign up and outline the key benefits of their ongoing gifts. Automated follow-up emails can thank supporters, share updates, and encourage them to remain active monthly donors all without any additional work form you or your staff.

Integrate Monthly Giving on Your Website

Signing up to your recurring program needs to be as simple as possible and needs to be integrated into your website so your supporters feel comfortable they are indeed donating to the right charity. Place clear “Make a Monthly Gift” buttons on your homepage, donation page, and blog posts. You can also use pop-ups or banners to draw more attention to your recurring giving options. Highlight the benefits of monthly donations, such as convenience and long-term impact, to encourage sign-ups. Tools like PayBee simplify this process by offering seamless donor engagement platforms with customizable donation pages and tracking features.

Run Focused Campaigns with PayBee

PayBee’s tools allow nonprofits to set up and promote monthly giving programs effectively. Use PayBee’s donor management features to track recurring contributions and engage supporters with automated thank-you messages. Host virtual fundraising events using PayBee to showcase your mission and encourage monthly sign-ups during live sessions. Integrating tools like PayBee makes managing campaigns and increasing monthly donor participation much more efficient.

Engage with Donors Regularly

Keeping monthly donors informed about the impact of their contributions through regular updates via email, social media, or newsletters not only builds trust, but also cements your relationship with them. Consistently share your success stories, photos and videos, or milestones that show your charitable progress. Then combine all that with recognizing your monthly donors publicly on your website or social media and you will build a sense of community and appreciation keeping your donors for a long time to come.

Offer Incentives to Encourage Sign-Ups

Another way to encourage monthly giving sign-ups is to offer small perks to new monthly donors, such as branded merchandise or VIP invitations to special events. These incentives not only make make your donors feel valued, they can also feel they’re getting some sort of personal value beyond just the joy of giving. For example, a solid call to action may be “Sign up for $15/month and receive a branded t-shirt and coffee mug as a token of our appreciation.” This not only gives your supports perceived value for choosing a recurring campaign, but also keeps your charity front and center in their lives each time they use your merchandise!

Promoting a monthly giving program requires a combination of clear messaging, storytelling, and smart marketing strategies. By using tools like PayBee, engaging social media content, and targeted email campaigns, nonprofits can effectively grow their recurring donor base. The key is to communicate impact, build trust, and make the process as simple for supporters as humanly possible. With consistent action your monthly giving program has a solid chance at becoming a reliable source of funding while also building long term relationships with your supporters.

Wrapping Up and Future Trends in Monthly Giving Programs

Monthly giving programs will continue to grow as technology improves donor experiences and makes recurring contributions easier. Nonprofits can expect trends like mobile donations, AI-driven engagement, and cryptocurrency payments to reshape monthly giving in the future.

Mobile technology is already playing a major role in fundraising. Donors are increasingly using their smartphones to make one-time and recurring contributions. This means your nonprofit needs to optimize its donation pages for mobile users and provide easy payment options through mobile apps like Paybee and others. This also opens up accepting many types of donations from Stripe to credit cards.

Then there is artificial intelligence which is already making a massive splash when it comes to personalizing donor communication. AI tools can analyze donor behavior and send tailored messages that encourage continued support pretty much all on autopilot. This automated approach not only works to strengthen relationships and improve donor retention, it also frees up massive amounts of time for you and your staff to focus on your mission.

Cryptocurrency is becoming a new option for donations and if you haven’t started accepting crypto yet, it’s time to get started! More donors, especially younger supporters, are open to giving through digital currencies as well as cash gifts. You can easily integrate cryptocurrency donation with platforms like Paybee to attract tech-savvy donors and expand their giving opportunities.

All of these current and future advancements will make monthly giving more accessible, convenient, and appealing to a broader audience. By embracing these tools, your nonprofit can increase donor engagement, build reliable revenue streams, and secure long-term sustainability. The future of monthly giving lies in leveraging technology to meet donor preferences and simplify the giving process. Organizations that adapt to these trends will create stronger connections and maximize their fundraising potential while those that don’t work with these new funding streams will most likely be left behind.

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