27 Keys to Monthly Giving Program Success, Part 1 (1-6)
[Editor's note: This is part 1 of a four-part series on the session "25 Proven Monthly Giving Tools & Ideas Packed in 50 Minutes" held at the 2012 Washington Nonprofit Conference.]
A monthly giving program can do wonders for a nonprofit organization's fundraising. Having a stable of dedicated, loyal donors who contribute regularly is a luxury that increases annual and lifetime donor value, lifts fundraising results, and alleviates some of the pressures.
At the Direct Marketing Association Nonprofit Federation's 2012 Washington Nonprofit Conference Thursday, five fundraising pros shared their secrets to implementing and running a monthly giving program in their session, "25 Proven Monthly Giving Tools & Ideas Packed in 50 Minutes." Here are the first six of the 25 — actually, 27 (two bonus tips!) — provided by the presenters: Mary Arnold, president of Mary Arnold Enterprises; David Glass, director of online marketing at World Wildlife Fund; Karen Kennedy Downs, direct marketing manager of monthly giving at CARE USA; Nicole Weidokal, vice president of client services at DCCi; and moderator Erica Waasdorp, senior fundraising consultant at DMW Direct.
1. Just do it
No matter the shape, size or mission of your organization, you should set up a monthly program. Even if it doesn't gain much traction initially, it's a revenue stream that grows and becomes worth a lot over time.
"If you ask, they will come," Waasdorp said. "Even a small number of sustainers will make a difference. Over time, it's worth lots of revenue."
2. Present management with long-term revenue projections
To get buy-in from the top and justify the existence of a monthly giving program, give your leadership numbers and projections, emphasizing the long-term benefits of a monthly sustainer program, Waasdorp said. The executive director and board like to see numbers and statistics, so provide them. Annualized revenue results and telemarketing response look better and compare better with monthly giving against other appeals, especially over time. Show management projections for the long tail.
3. Keep the rest of the organization informed of progress through small internal news flashes
"Sustainers oftentimes are not seen as exciting compared to acquisition or housefile tests, so you may need to do internal PR, if you will," Waasdorp said. "Every month send a note to update your colleagues on the revenue, growth and activity of your sustainers."
4. Convert credit card single donors to sustainers
If you have donors who already made a gift via credit card, try converting them to provide monthly donations that way. It's an easier sell, Waasdorp said, because they're already comfortable giving with their credit cards, and it can be a simple add-on to a reply form.
"To have a successful monthly giving campaign, start with credit card donors," she said. "They're a lot easier to sell, and generate results."
5. Stay ahead of credit card expiration dates
Donations can be rejected or delayed due to expired credit cards. To keep projections and revenue on schedule, set up a system to contact donors before their credit cards expire. Don't wait to get rejected due to the credit card expiration date to contact a monthly donor. You want to stay ahead of the curve, Waasdorp said.
This contact point is also an ideal time to ask for an upgrade in giving level. Test to see if your monthly donors are willing to increase the amount of their monthly gifts at this time.
6. Convert reminders to automatic gifts
If you offer monthly mail reminders, try converting them to auto giving via bank or credit card on a regular basis, Waasdorp said. Buckslips with potential savings can generate 2 percent to 3 percent conversion every month. If you keep doing it every month, you really grow the auto givers in your monthly giving program.
