Non-profit organizations must find ways to stretch every dollar to have the most impact on the people they help. That’s why smart non-profit organizations have started giving donors the ability to make monthly recurring donations.
If you do not have a donor monthly donation program, do not miss the opportunity to get more money over a longer period.
How much money? on average, a donor who uses recurring donations gives 42% more than a donor who gives a one-time gift.
Moreover, it’s not just about money. Recurring monthly donations offer many benefits for both the non-profit organization and donors. Last but not least, this is a predictable income for your business.
Top five reasons why every charitable organization needs monthly recurring donations:
Increase donor retention
Reduce operating costs
To provide donation comfort
Build better relationships with loyal donors
Increase in total sales.
Returning donors spend on average 42% more a year than donors who donate once.
A bit adds up. While donors may be reluctant to donate a one-time donation of $ 100, they are often pleased with a recurring monthly donation of $ 10. These smaller monthly payments add up to a larger annual sum than the one-time gift of $ 100 that they were not satisfied with.
Increase the donor bond.
“Over 70% of the people hire in organizations never come back and make another gift Contrast this with an 80% retention rate in the first year for donors who give as part of a monthly donation program.
The convenience of returning online donations is an important part of donation engagement. ‘Many organizations find that a donor who donates by credit card or EFT monthly on average 4 years remains active’
Reduce operating costs.
Recruiting new donors requires more resources and costs than working with existing donors. You have just learned that providing donors with the ability to make recurring monthly donations increases donor engagement. Increased donation retention means lower operating costs!
With a monthly donation program, you reduce the pressure and the effort, which is associated with the permanent collection of donors. The result is a decline in marketing, administrative and even postage costs. This is especially useful for smaller non-profit organizations with limited resources.
Provide convenience for donors.
Talking about the benefits to your non-profit organization has been discussed so far in many discussions, but the ability to give on a permanent basis is also a benefit for donors
The life of your donors is already geared towards monthly recurring payments,
For example, for their cell phones, Internet, movies, music, “Box of the Month” clubs, etc. The ability to support their favorite organizations/concerns with a smaller monthly gift is convenient and affordable.
The affordability and convenience of recurring online donations is particularly appealing to millennials – an important donor segment that any company should aspire to and maintain.
Build better relationships with loyal donors.
McKinnon emphasizes that communicating with lenders is less about recruiting than how their gifts have truly changed the organization’s program and mission. Moreover, let’s be honest: Monthly donors appreciate that you do not send them so often via email.
Through recurring donations, sustainable donors regularly enjoy the feeling of being comfortable knowing that their support helps others. So it’s no surprise that donors who donate monthly are more committed to their cause than donors who make unique gifts.
Monthly donors are not only loyal and committed to your organization, but they also participate in your events throughout the year and are committed to their charitable organization