Creating a Nonprofit Monthly Giving Program

Kristy Morris

Marketing Lead – Sneakers4Good

Nonprofits, Community

One-time donations give your organization an extra boost from time to time, but without a sustainable revenue source, nonprofits can struggle to keep up with costs. This is where monthly giving becomes an essential component to add to your nonprofit’s overall fundraising strategy. These giving programs provide a safety net with a reliable income stream and extra resources when your organization is trying new or exciting fundraising ideas. 

By diversifying your revenue stream with more consistent sources of income, monthly giving programs have the potential to not only keep nonprofits afloat but also provide the foundation to take them to new fundraising heights. This guide will walk you through the basics and give you six steps for creating your program. 

Benefits of a Monthly Giving Program

Did you know that from 2018 to 2022, the average nonprofit’s recurring donor base grew 127%? In other words, this is a method of giving that is increasing in popularity every year. However, if you’re still not convinced, we’ve provided specific monthly giving benefits for your organization and its supporters to give you an idea of its potential.

Organizational Benefits

Your monthly giving program can give your nonprofit:

1. A predictable source of revenue. With reliable income, you won’t have to worry about being unable to cover unexpected costs. 
2. Planned gift donor potential. Supporters who give monthly are much more likely to consider making a planned gift to your nonprofit.
3. Increased donor lifetime value. Compared to one-time donors, monthly donors offer a higher donor lifetime value through long-term support. In fact, on average, recurring donor gifts are worth up to 4x more than those from one-time donors over the lifetime of their giving. 

Donor Benefits

Donors benefit from monthly giving programs too! Here are a couple of perks of participating in a recurring donation program: 

1. Ease. With an accessible monthly giving program set in place, donors can rely on automatic payment processing instead of mail-in donations or having to fill out your online giving page each time they want to donate. 
2. Flexibility. Over time, donors can adjust their donation amount to what best suits their budgets. 
3. Exclusive event access. You can provide special perks to your monthly donors, such as free event access or branded merchandise. 

Ready to launch your monthly giving program? Let’s examine our six top tips for generating fruitful, recurring gifts. 

Strategy #1: Target Existing Donors for Monthly Giving

If you want to kickstart your monthly giving program and encourage sign-ups, maximizing your efforts by targeting existing donors is essential. One-time donors simply may not possess the commitment, resources, or familiarity with your nonprofit for a dedicated monthly gift, and that’s okay! With more time and experience with your organization, one-time supporters may eventually be open to enrolling in your monthly giving program.

However, for the time being, it’s best to focus on regular or new contributors. In breaking down these donor specifics even further, your monthly program should target donors who:

• Have made at least two gifts within the past year
• Are new or recent
• Give through several channels

To narrow your monthly giving prospects even further, you can use a nonprofit CRM like Bloomerang or CharityEngine. These software resources allow you to track and monitor previous and incoming donor data. Their helpful filters and reports can give insight into which donors would be the best monthly giving candidates. 

Strategy #2: Create An Easy-to-Use Donation Page

Next, you want to ensure the online donation experience is simple and accessible for your monthly donation program. In short, the donor must be able to find your donation page online easily, enter the amount they want to donate per month, and complete the sign-up process without running into any technical issues. 

This process should happen effortlessly. For instance, adding a monthly donation option to your nonprofit giving page provides a simple way for supporters to get involved. So, if you haven’t updated your site or have a cumbersome donation process, this is the time to simplify the donation process. 

You could offer suggested donation amounts when prompting donors to sign up for monthly giving. Experts recommend using your average donation amount and dividing it by three to determine your entry-level donation request.  

Finally, to provide a top-notch user experience, consider streamlining your checkout process so that it doesn’t require much additional information about your donors beyond their contact and payment information. That way, donors don’t get too bogged down with entering so much information about themselves.

Strategy #3: Find a Software Partner for Monthly Giving

To get your recurring giving program off the ground, we recommend partnering with a reliable software partner. The software you implement will do all the heavy lifting and should include the ability to customize the look and feel of your donation page and automate monthly donations. 

When selecting a software partner, consider all of your options. Start with your current provider, but if they don’t have the functionality you need, don’t be afraid to branch out and explore a more suitable software platform. As your monthly donor base changes, you may need to choose a software partner with more scalable product offerings. 

Monthly donation capabilities should be relatively easy to find in a software platform. Companies like Bloomerang and CharityEngine offer flexible donation recurring giving options so you can make the monthly giving process as smooth as possible. Moreover, with the power of artificial intelligence and technology, these platforms increasingly offer powerful features. For instance, some platforms use predictive technology to find the best prospects easily. Conduct your research to discover a software solution that meets your unique budget and nonprofit needs.

Strategy #4: Prioritize Monthly Giving User Experience

When signing up for your monthly giving process, your supporters should have a seamless donation experience. However, as you initiate your monthly giving program, there may be some roadblocks. Consider receiving donor feedback to assess where to strengthen the monthly giving experience.

Ask supporters questions, such as: Do they find it hard to donate, or is it too complicated? Are there any bugs? What are your donors’ thoughts on the design? Then use their feedback to make informed changes to your donation page so you can streamline the process. For example, call attention to your giving program with recognizable design choices such as bold font or bright brand colors.

You might also consider adding the impact of recommended specific giving amounts. It could look like mentioning X dollars can help provide X meals for families in need. Donors who connect their gifts to real-world impact are much more likely to understand and support your nonprofit mission. 

Strategy #5: Brand Your Monthly Giving Program

Supporters are more likely to respond to a well-branded monthly program rather than a generic recurring request. Therefore, we recommend choosing a name that aligns with your nonprofit and specifies recurring contributions’ direct impact. You can then use your monthly program name in your promotional materials, including a designated monthly giving donation page on your website. 

Monthly programs like She’s the first: The Front Row perfectly capture the vision and urgency of She’s the First’s mission statement. Through their monthly contributions, supporters enable “community-based partners to act fast to address girls’ vital needs.” The nonprofit’s monthly program name reiterates its goal to see more girls occupy the “front row” in academic spaces.

Keep your monthly program name on the shorter side, so that it’s easier to market and build visibility. Additionally, consider including photos of your beneficiaries on your donation page, so that donors can visualize their impact. 

Lastly, highlight your nonprofit goals on your monthly giving page and why you do what you do. CharityWater, for instance, mentions 771 million people drink dirty water. They then connect this statistic to their monthly giving request of $20 to bring six people clean water every year. 

Strategy #6: Promote Your Monthly Giving Program

Promote your monthly giving through your existing marketing channels. Leverage your social media accounts, like Facebook and Instagram, and make posts to update your followers when your monthly giving program is up and running. Consider using hashtags and story-voting polls to elevate your social media presence and generate engagement. You can also contact nonprofit influencers and ask if they want to promote your giving initiatives. 

In your next email newsletter, include a new section with your giving program name, and steps donors can take to get involved. Explain the significance of monthly giving and how this can help you advance your mission.

Plus, consider hosting a short webinar or YouTube Q&A to answer any monthly giving questions and provide necessary context. Express the impact of your monthly giving program and how supporters can make a difference. You can reuse this video in your promotional communications to build enthusiasm around your cause. 

Monitor your website metrics like page views and dwell time on your designated monthly giving page to make adjustments as needed during the first couple of months.

Increase Revenue with Recurring Giving Programs: Final Thoughts

With the above tips, you are prepared to take on the adventure of giving monthly! This process might need some adjustments along the way, but after the first few months, you should see a steadier increase in recurring gift revenue. Keep in mind that any monthly giving amount can make a difference.  

For instance, you may have one donor contributing $10 every month another giving $50 every month. Regardless of the amount, these monthly contributions add up over time and can significantly impact your bottom line.