Online Fundraising and 3 Reasons to Start a Recurring Gift Program | npENGAGE

Online Fundraising and 3 Reasons to Start a Recurring Gift Program

By on Feb 16, 2012


Recurring Giving
Recurring Giving

Recurring Giving – The #1 way to create steady fundraising revenue.

You’d probably agree that, along with looking to increase the lifetime value of donors, many nonprofits (possibly yours) are striving to do more with less while also looking for new ways to secure consistent funding.

It’s a tough position to be in—being required to do more with less.

One of the ways nonprofit organizations are meeting this demand is by placing some of their focus on building successful online fundraising programs. The reason they’re going this rout is because online giving is a key component to Achieving 3X Better Fundraising Results.

But why not take it to the next level by including a recurring giving option as part of your online fundraising strategy and service to donors?

Here’s why …

Recurring Giving helps Increase Donations

The concept of recurring gifts is simple. Donors commit to a donation amount that is paid regularly—most often monthly.

The average monthly gift ranges from $5 to $50 per month and with low dropout rates, no end date for each recurring gift, and regular appeals to upgrade monthly contributions, the lifetime value of each donor can reach into the thousands.

It’s estimated that donors who are set up to give on a monthly basis are give 600-800% more than annual giving donors. Incredible, I know!

Recurring Giving helps Build Supporter Loyalty

Supporters are more likely to make a donation, and more likely to continue donating, if you make the process easy.

And what could be easier than having a monthly gift deducted from your credit card or checking account?

In just a few minutes, donors can click a button in your email newsletter to donate, provide their monthly gift amount and payment information, and just like that they are part of your recurring giving program. Or you could add an option to your direct mail response cards and telemarketing scripts for donors to make recurring gifts.

Supporters like this method because it is quick, easy, cost-effective and better for the enviroment.

By eliminating the need for checks and cutting down the number of direct mail, you’re satisfying the desire donors have to see a large portion of their money go directly to programs (the things that actually change the world) instead of overhead or administrative costs.

It’s a win for everyone.

Recurring Giving Creates Predictable Revenue

Because donors are giving monthly, the revenue stream from your recurring gift program is very predictable. It is among the most cost-effective long-term fundraising methods that exist today.

The gift is only solicited once, and because it is handled electronically, processing costs are kept low. Additionally, donors must put forth effort to cancel their gifts, giving you the benefit of “donor inertia.”

With a steady and reliable stream of income that has low and predictable dropout rates, organizations can count on this future income more safely than upcoming direct mail or telemarketing efforts.

Once you are set up with the appropriate technology, you can handle thousands of gifts electronically, which significantly reduces the burden on your staff.

Download the Recurring Giving whitepaper by Bill Connors, author of Fundraising with The Raiser’s Edge: A Non-Technical Guide You’ll learn more about ….

  • The benefits and challenges of a recurring gift program.
  • Successes of recurring gift programs in organizations around the world.
  • How to establish a recurring gift program.

CLICK HERE to Download “Increase the Lifetime Value of your Supporters — Create a Recurring Gift Program” Now!


Frank Barry, formerly worked at Blackbaud helping nonprofits use the Internet for digital communication, social media, and fundraising. He’s worked with a diverse group of organizations including LIVESTRONG, United Methodist Church, American Heart Association, Big Brothers Big Sisters, ChildFund Int’l, InTouch Ministries, Heifer Int’l, University of Notre Dame and University of Richmond. Along with writing for industry publications like Mashable and Social Media Today, Frank facilitates discussions, presents solo sessions and organizes panels for industry conferences such as NTC, SXSW, BBCon and numerous others. When he’s out and about he enjoys talking to interesting people about how they are changing the world – check out his interviews. Say Hi on Twitter – @franswaa or Google+

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