7 ways to prioritize monthly giving donations (+ how to ask for recurring donations)

Erin Booker

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November 8, 2024

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5 minutes

Nonprofit Trends

How To Nonprofit

This article is part of a series

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7 ways to prioritize monthly giving donations (+ how to ask for recurring donations)

You've got limited time. You've got limited budget. You've got limited resources. You've got to prioritize recurring donations.

Don't skedaddle just yet, though... we wrote a whole article trying to convince you to get moving on your own monthly giving program! Please stay and read just a little bit? We've got... let's see... reasons to invest in monthly recurring donations! Things that recurring donors want... and what they don't want. And even templates and tools to help you ask for recurring donations!

Oh yeah, one last thing: fundraising platforms! Check out Funraise for your all-in-one donation platform. We've got recurring upgrades, donor management software, the best peer-to-peer in the world, features galore, and (don't) slap your mama Fundraising Intelligence reporting—everything you need in a fundraising platform.

Reasons to invest in monthly recurring donations

Increased Revenue
Easy Giving Process for Donors
Predictable and reliable income
Increased donor retention
Improved donor engagement
Cost-effective fundraising
Increased Impact over time

1. Increased revenue

Who doesn't want more money? It's like finding an extra fry at the bottom of the bag, but instead of a single fry, it's a never-ending stream of delicious, mission-fueling donations. Your accountant will love you, and you might even be able to afford that fancy coffee maker for the office.

Monthly recurring donations often lead to higher overall revenue compared to one-time gifts. Studies show that recurring donors give more annually than one-time donors. This consistent income stream allows nonprofits to plan and execute long-term projects with greater confidence.

2. Easy giving process for donors

Make donating so easy that your supporters can do it in their sleep. Literally. With recurring donations, they can support your cause while dreaming about saving the world in their superhero pajamas. It's philanthropy for the lazy (but passionate) do-gooder.

Recurring donation programs simplify the donation process for donors. Once set up, contributions are automatically processed, reducing the need for repeated decision-making and action on the donor's part. This convenience often leads to longer-term commitment and higher lifetime value.

3. Predictable and reliable income

Say goodbye to financial rollercoasters and hello to a smooth ride of steady income. It's like having a crystal ball for your budget, minus the creepy fortune teller vibes. Your finance team might actually smile during monthly budget meetings!

Monthly donations provide a steady, predictable income stream, enabling nonprofits to budget more effectively and make informed financial decisions. This reliability allows your favorite organizations to commit to ongoing monthly donor programs and operational costs with greater certainty.

4. Increased donor retention

Keep your donors longer than that gym membership they swore they'd use. Monthly giving programs are like relationship glue, keeping your monthly supporters stuck to your cause like lint on a black sweater—but in a good way!

Monthly givers tend to have higher retention rates compared to one-time givers. The average retention rate for monthly donors is significantly higher than the retention rate for one-time donors. This sustained support is crucial for long-term organizational stability.

5. Improved donor engagement

Turn your donors into super fans who are more engaged than a Bridgerton viewer during a scandalous scene. They'll be so invested in your cause, they might start wearing your nonprofit's merch to bed. (Pantaloons, ooh!)

Monthly donor programs create regular touchpoints with donors, allowing for consistent communication strategies and engagement. This ongoing relationship provides opportunities to share impact stories and updates and cultivate a deeper connection between the donor and the organization's mission.

6. Cost-effective fundraising

Spend less time and money chasing new donors and more time actually changing the world. Similar to buying in bulk at Costco—more bang for your buck, and you don't have to lug home a year's supply of toilet paper.

Acquiring new donors is typically more expensive than retaining existing ones. Monthly gift programs reduce the need for constant donor acquisition efforts, lowering overall fundraising costs. This efficiency allows nonprofits to allocate more resources directly to their mission-related activities.

7. Increased Impact

With steady donations, you can plan bigger, bolder initiatives. When you upgrade from a kiddie pool to an Olympic-sized one, suddenly, you're Michael Phelps of the nonprofit world, swimming in impact and gold medals (metaphorically speaking, of course).

With a reliable income stream (ha!), nonprofits can plan and implement more ambitious, long-term projects. This stability enables organizations to make fundraising strategy that can significantly enhance their financial impact and effectiveness in addressing their core mission.

Ways to increase retention in your monthly giving program

Make your program exclusive
Set up direct monthly payments
Connect donors to the impact
Deepen relationships
Segment your communications
Mix it up!

1. Make it exclusive

Turn your nonprofit organization's critical program into the Hogwarts of philanthropy—a magical place where only the most committed supporters get to hang out.

2. Set up payments directly from a donor's bank account

Make donating a monthly contribution as easy as ordering pizza. By setting up direct bank transfers, your donors can support your cause without even having to put on pants.

3. Connect donors to their impact

Don't just tell your donors they're making a difference—show them! Create a "Choose Your Own Adventure" style annual report where donors can see exactly how their monthly gift opportunity is saving the world, one donation at a time.

4. Deepen donor relationships

Get to know your recurring donors like you know your favorite TV characters. Send them personalized updates, invite them to exclusive events, and maybe even remember their birthdays. Just don't show up at their house unannounced—that's crossing a line.

5. Segment communications to recurring donors

Treat your recurring donors like the special snowflakes they are. Tailor your communications to them like a bespoke suit, making sure each message fits their interests and giving history perfectly. It's like creating a mixtape, but instead of love songs, it's filled with impact stories.

6. Mix it up!

Keep your donors on their toes like a cat chasing a laser pointer. Surprise them with unexpected thank-you calls, quirky impact videos, or even a "Donor of the Month" feature on your website. Just remember, variety is the spice of life—and donor retention!

Things recurring donors want

A straight line to long-term impact

Recurring donors crave a direct connection to their potential impact like a caffeine addict needs their morning coffee. They want to see their monthly donations transforming lives, not getting lost in a sea of administrative paperwork.

Offer exclusive content and swag

Who doesn't love feeling like a VIP? Recurring donors want that backstage pass experience—exclusive updates, behind-the-scenes peeks, and maybe a cool t-shirt that screams, "I'm a superhero in disguise."

To forget it

Ironically, recurring donors want to set it and forget it, like a crockpot of generosity. They love the idea of making a difference without having to remember to do it every month.

Fewer but more direct asks

Recurring donors appreciate a nonprofit that respects their inbox. They want communication that's as precise as a surgeon's scalpel, not as frequent as a telemarketer's calls.

7 ways to prioritize monthly giving donations (+ how to ask for recurring donations)

Things recurring donors don't want

Thank you letters

Contrary to popular belief, recurring donors aren't collecting thank you letters like Pokémon cards. They prefer meaningful impact updates over a forest's worth of gratitude notes.

Overt cultivation

Recurring donors aren't looking for a second job as a fundraiser. They want to support your cause, not feel like they're being groomed for a bigger role in your organization.

Direct mail gifts

While everyone loves a surprise in the mail, recurring donors aren't in it for the branded pens and notepads. They'd rather see their money go towards the cause, not postage.

The one-time-donor treatment

Recurring donors are the VIPs of your current donor base. Treating them like one-time donors is like serving caviar on a paper plate—it just doesn't fit.

Drawbacks to recurring giving programs

Ugh! Can't anything be perfect? Recurring giving programs are pretty close, we'll give 'em that, but there are still a few drawbacks to putting together a monthly donor program. Let's check the board.

Building a sense of community takes work

Ugh... wooorrrkkk. We've talked a lot about the benefits to your organization, but how does setting up recurring giving benefit your donors? One of the biggest, most important benefits—and reasons why people give any amount, any time—is the tie they feel to the people being helped.

But establishing those ties means building trust, showcasing the great things about your team, your mission, and your constituents—all of which take time, creativity, and commitment: Work.

On the other hand, this is work that's worth it.

Donations stay static

A donor who gives $5 each month gives $60 a year. That's better than a one-time donation of $50, but that donor may give $100 next year. Now you're on the upside-down end of opportunity cost. Unless you upsell your recurring donors, you could be pulling in more.

Need strategies to increase recurring donations? Get 'em, got 'em, good!

Swag is expensive

A lot of nonprofit subscription programs offer swag to their members. And swag is cool! But also... how many water bottles or t-shirts does any donor need? Thinking up something creative is hard, something in your budget is even harder, and then deciding how to mail swag to people, how many colors on the imprint—or should it be engraved? The costs just mount up!

Mobile phone with donation form and donation charts floating around the phone.

Woman looking at fundraising chart with button to book a call.

Yellow shapes in background with donation form in front with stylized text, build an intelligence giving experience.

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How to ask for recurring donations

Want to know how to ask for donations? We got you covered. If you want to know how to ask for recurring donations, let's get you some sample scripts.

How to ask for recurring donations by email

We asked Appeal AI powered by Funraise for an email to current supporters that aren't yet recurring donors. We think this email is awesome, but you should try it yourself.

Subject Line: 🎪 Keep the Circus Rolling: Become a Recurring Donor Today! 🎪

Dear [Supporter's Name],

Did you know that your support can fuel the laughter and joy that clowns bring to the circus, not just once, but every single day? 🤡✨

At Cars4Clowns, we're on a mission to keep the magic alive by ensuring our beloved clowns can carpool to the circus. Thanks to generous supporters like you, we've been able to make significant strides, but there's more to do—and we need your help to keep the wheels turning.

Imagine this: With a simple monthly donation, you can ensure that our clowns never miss a performance, spreading smiles and joy to audiences everywhere. It's not just a donation; it's an ongoing journey of laughter and happiness.

Here's why becoming a recurring donor is a game-changer:

Sustained Impact: Your monthly gift amount provides a reliable source of funds, ensuring we can plan and execute our mission effectively.
Convenience: Set it and forget it! Your recurring donation is automatic, allowing you to support effortlessly.
Exclusive Community: Join a dedicated group of supporters committed to making a lasting difference.

By committing to a monthly donation of just $[amount], you're not only supporting the arts but also becoming a vital part of our circus family. 🎪❤️

Ready to make a difference? Click the button below to become a recurring donor today:

[Donate Now]

Thank you for being a crucial part of our story and for considering this impactful way to support Cars4Clowns. Together, we can keep the circus rolling!

With gratitude and excitement,

[Your Name]
[Your Position]
Cars4Clowns

How to ask for recurring donations by social media

We asked Appeal AI powered by Funraise for a social media post to recruit recurring donors. We think this post is awesome, but you should try it yourself.

🚗🤡 Did you know your old car could bring laughter to thousands? 🤡🚗

At Cars4Clowns, we're on a mission to turn your car donations into a driving force for joy! By donating your vehicle, you're helping clowns carpool to the circus, spreading smiles and giggles along the way. 🌈✨

Think about it: Your unused car could be the reason a child laughs for the first time at a circus show. 🎪❤️

Ready to make a difference? Donate today and let your car be the vehicle of happiness! Visit our website to learn more.

#Cars4Clowns #DriveJoy #DonateForLaughter #CircusSmiles

How to ask for recurring donations by phone

We asked Appeal AI powered by Funraise's nonprofit assistant for a phone script to recruit recurring donors. We think this draft is awesome, but you should try it yourself.

Introduction:

Hi [Supporter's Name], this is [Your Name] from Cars4Clowns. How's your day going?

Purpose:

I wanted to thank you for your past support. Your contributions have helped us provide cars for clowns, making it easier for them to carpool to the circus and bring joy to audiences everywhere.

Proposal:

We're reaching out to invite our valued supporters to become monthly donors. Regular donations help us ensure clowns have reliable transportation for their performances.

Benefits:

Consistent Support: Your monthly gift helps us keep clowns on the road and the show on the go.
Easy Giving: Set it up once, and it’s automatic every month.
Community: Join a special group that supports the circus arts regularly.

Ask:

Would you be interested in becoming a recurring donor? Even a small monthly amount can make a big difference in keeping the fun rolling.

Conclusion:

Thank you so much for considering this. Your support is vital, and together, we can keep the circus spirit alive. If you have any questions or need more details, feel free to ask!

How to ask for recurring donations by text

We asked Appeal AI powered by Funraise's nonprofit assistant for a text message to recruit recurring donors. We think this draft is awesome, but you should try it yourself.

Hey [Name]! 🌟 Your support is awesome! Want to make even more impact? Become a monthly donor and help us do more good. Join us here: [link]. Thanks a bunch!

Monthly giving FAQ

Why is recurring giving important?

Recurring giving provides nonprofits with a stable, predictable income stream, enabling better financial planning. It increases donor retention rates and lifetime value. Monthly donors often give more annually than one-time donors, so this giving model reduces fundraising costs, allowing for long-term program planning, and creating a loyal donor base for sustained support.

What is the difference between a pledge and a recurring donation?

A pledge is a promise to donate a specific total amount, often paid in installments over a set period. A recurring donation is an ongoing, open-ended commitment to give a fixed amount regularly (e.g., monthly) with no predetermined end date or total sum. Recurring donations offer more flexibility for average donors and steady income for nonprofits.

How do you acknowledge recurring donations?

Use varied communication channels to express gratitude and highlight the lasting impact of your recurring donors' support in the way that works best for them. Here are a few examples: Provide regular impact updates through newsletters or exclusive reports, offer special recognition in donor listings or at events, and send anniversary thank-yous to celebrate giving milestones.

Some donors will want you to acknowledge recurring donations with personalized thank-you messages after each contribution while others will appreciate a text, and still others would prefer for all of your energy to go toward your programs. But that's the beauty of recurring programs—you get to know your major donors very well!

How can monthly giving programs increase donor engagement?

Monthly giving programs increase potential donor engagement by providing regular touchpoints for communication. They create a sense of ongoing partnership, allowing nonprofits to share frequent stories of impact so current donors can feel more invested in the organization's mission, leading to higher participation in events, volunteering opportunities, and advocacy efforts.

How can you maintain strong relationships with your monthly donors?

Our best suggestions for maintaining strong relationships with donors are through personalized communication, exclusive content, and impact statements (or annual reports). Other things you can do include offering behind-the-scenes access to your organization's work, providing easy ways for current donors to manage their additional gifts, celebrating giving anniversaries and milestones, and seeking donors' input on programs and initiatives.