Pamela Grow Shares Her Must-Haves for Growing Your Monthly Giving

Here’s all you need to start your nonprofit’s monthly giving program:

1. The capability to offer recurring credit card payments and electronic funds transfer (EFT) payments

One organization I interviewed offers its monthly giving program solely via direct mail and a sign-up form provided by the bank. If your organization isn’t set up to accept recurring credit card donations, the beauty of EFT is that the retention rate tends to be higher than other methods because there are no expired credit cards.

By leveraging a payment processor that integrates with your fundraising system, you can take the hassle out of processing gifts and renewing memberships to retain more recurring givers. 

For example, DonorPerfect Monthly Giving allows you to automatically process recurring gifts at the donor’s preferred frequency and automatically update credit card information when it changes.

2. A “product” to offer your donors, or rather a case for support for your monthly giving program

What does your donor’s $10 or $25 or $50 a month buy? 

Feeding America notes that “every $1 of your monthly gift will help to provide $9 worth of food through [our] network of food banks.” UNICEF gives a compelling reason for donors to give monthly: “Monthly giving provides a steady and cost-effective source of income to the U.S. Fund for UNICEF. And because your monthly donation is processed automatically, you help us reduce our costs — which allows us to fund more programs and help more children.” 

The organization also lets donors know that “$15 a month (50¢ per day) can provide 12 packets of high energy biscuits specially developed for malnourished children.”

Paint a picture in the donor’s mind. Get specific, and get creative.

DonorPerfect’s integrated donation forms make it easy to encourage monthly gifts. Simply add impact descriptions for each gift amount!

3. Your donor base

Begin by targeting those donors who already have demonstrated a commitment to your organization, either by a history of loyal giving or more than one gift in the last fiscal year. Get your board members “on board.” When I’ve launched monthly giving programs for smaller nonprofits, I often begin by bringing in board members. By giving monthly, board members can stretch their commitment. Introduce monthly giving to your email list.

For tips to increase board participation, check out our recent blog: 4 Reports to Engage Board Members in Monthly Giving

IMPORTANT: Have a solid plan in place to steward your monthly donors well. The care and feeding of your monthly donors is a big question in many fundraiser’s minds. By all means continue to communicate. You don’t want to make the mistake of letting your monthly supporters fall into a black hole!

International copywriter and donor retention expert Lisa Sargent recommends sending out special versions of your regular communications, offering special opportunities (events, guided tours, president’s breakfasts, etc.) and saying thank you — a lot.

Does your organization offer monthly giving, but you’ve found that it’s languishing with few new sign-ups? 

Spend some time surveying your current monthly donors to find out why they give. Turn their comments into a “testimonial” sheet. Segment your database, and develop a targeted mailing or email campaign for the sole purpose of recruiting new monthly donors that includes the “testimonial”note with your mailing.

Include those testimonials on your website as well to encourage new monthly gifts. Review your monthly giving program every year with an eye to growing it. And always consider the lifetime value of your donor.