The Art & Science of Building Long-Term Donor Relationships through Recurring Gifts

Savvy nonprofits have long known the power of small, recurring donations. People still have a burning desire to support causes they care about. So what's the key to unlocking their generosity? It's simple: encourage your donors to automate their giving.

With the rise of subscription-based business models, there's never been a better time to jump on board. Easy, hassle-free giving attracts new supporters and sets your organization up for long-term success. Plus, with a built-in retention program, you'll keep donors giving year after year.

But it's not just about the money. By fostering a culture of recurring giving, you'll forge deep, meaningful connections with your supporters. Let’s dive into some more reasons to invest in this area of your fundraising.

Why Recurring Giving Is a Powerful Tool for Retention

Studies show a 10% improvement in your donor retention rate can equal a 200% increase in lifetime donor value. Recurring giving can help your retention rate in four significant ways:

• Long-term retention. Recurring donor retention rates are 80% after one year and as high as 95% after five years. Most monthly donors stay with your organization for five to seven years or longer.
• Increased revenue. Monthly donors give more annually — the average $52 monthly gift equals $624 a year. 
• Mission-focused. Predictable revenue makes your budget more reliable, so you can focus on your mission. There’s also less pressure on your team to get larger one-time gifts.
• Community creation. Donors will feel like they’re part of a movement. Build spaces, such as Facebook groups or unique newsletters, just for them.

How to Identify Recurring Givers in Your File

Prime prospects for your monthly giving program are already in your database. Here’s who to target:

• Loyal donors who have given four or more gifts in 12 months
• New and renewing donors who have given $25 or more
• Brand new donors
• Younger donors who love subscriptions
• Older donors on a fixed income

Each time you renew a donor, try to make their gift more regular — annual donors to quarterly, quarterly donors to monthly. Also, look for trends in your database or work with a third party to find opportunities.  

Practical Steps to Invite and Keep Recurring Donors in Your Portfolio

Building a solid recurring giving program involves practical planning and creative branding. Give your program a catchy name and logo, and offer exclusive benefits to monthly donors. Make sure to showcase your program prominently in all your assets, and set a clear campaign goal with an incentive that drives urgency. 

Keep your team motivated with weekly progress updates, and use an omnichannel approach to engage the community through targeted invitations, social media, special mailings, phone campaigns and testimonials. Assign a dedicated staff member to serve as a point of contact, and send personalized thank-yous and communications. 

Finally, regularly reflect on your program's success and how you can improve communication with donors about its impact, benefits, and expectations.

Donor Retention Data and Strategies

Data should inform every aspect of your monthly giving program — especially recruitment. The more you know about your donors, the more personalized experiences you can create for them.

For instance, data can help you understand the makeup of monthly donors in your file, such as demographics, disposable income, other types of nonprofits they donate to and whether they have children in the home. You can also identify folks such as younger donors who prefer the ease of subscription models, while older donors are on a fixed income. Both attributes lend themselves to recurring giving.

Personalization is critical for your monthly giving communications. As often as these donors give, there’s no excuse — how are you showing them how special they are? Thank-you notes should be personalized and timely, and they should communicate the impact of their donation. 

Practical Steps and Key Takeaways

A high-impact recurring giving program starts with small, simple steps:

• Promote monthly giving in all existing fundraising. Set “recurring” as a default selection on donation forms.
• Illustrate the power of small donations over time. Coach fundraising staff to pair small, regular giving now with the bigger picture, helping new donors realize their impact.
• Make your donor the “hero.” Show how their recurring donation improves the lives of those you serve.
• Enlist others to give testimonials about why they give monthly. Show donors how “someone like them” can make a difference.

A monthly giving program equals built-in retention. When donors stick around, you can develop lasting relationships with them. As a result, you’ll increase revenue, stabilize your organization and create a community that will see your nonprofit through good times and bad.

The preceding blog was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.