The Value of Recurring Donor Programs + How to Launch One
- Nonprofit Learning Lab
- Aug 11
- 5 min read
This is a guest blog.
Accessing financial stability for your organization can be a hefty task when relying on unpredictable donations from donors giving a one-time gift. While an in-kind gift ahead of your auction or a generous check at the end of the year can be helpful, the secret to long-term financial stability for your nonprofit is recurring support.
A dependable base of recurring donors who align with your mission and offer consistent support will set your nonprofit up for success by providing a consistent stream of income. However, it takes a structured approach to encourage repeated support from a large group of donors, which is why recurring donor programs are invaluable to your success.
This article details the importance of recurring giving and tactics your organization can employ to build a strong, scalable program.
Why Do Recurring Donor Programs Matter?
Recurring giving offers nonprofits a reliable and predictable stream of income, allowing them to plan budgets effectively and reduce their reliance on one-time donations. A successful recurring giving program also strengthens ties to your donors and often increases a donor’s lifetime value to the organization.
Still not convinced? CharityEngine’s roundup of recurring giving statistics provides compelling evidence for the significance of securing repeated support:
The average size of a monthly gift is $24, while the average one-time gift is $115. In other words, monthly donors contribute $288 per year, which is $173 more than the one-time donor.
The average recurring donor sticks around for more than eight years, while non-recurring donors have a lifetime of only 1.68 years.
57% of donors are enrolled in a recurring giving program, and monthly giving accounts for 31% of all online revenue.
The numbers don’t lie—securing recurring donors means a steady cash flow for your organization and a long-term base of donors that are loyal to your mission. Creating and maintaining dedicated programs for acquiring and facilitating recurring gifts guarantees financial stability and improved donor retention.
Key Ingredients of a Successful Recurring Giving Program
While every recurring giving program looks different, it needs a few elements to succeed. A strategic approach that engages donors increases your chances of raising support for your organization on a consistent (rather than one-time) basis.
Every successful recurring giving initiative should include the following foundational elements:
Branded donation forms: A branded donation form creates a seamless experience for those looking to contribute and assures donors that their gifts are going to a reputable and trustworthy organization.
Thank-you automations: Setting up an automation with a thank-you message each time a donor makes a payment ensures that the donor feels appreciated for their support and reduces the manual effort required from your staff to maintain consistent communication.
Impact tracking: Showing donors the direct impact of their recurring gift fosters trust and a deeper understanding of how they are contributing to your mission. Regular updates on how their gift is being used help donors feel like active partners in your organization.
Recurring giving programs should be tailored to donors’ preferences, so your program may have different components from another organization’s. For example, one organization’s donors may respond better to impact metrics in donation thank-you emails, while your donors may show higher engagement when impact statistics are provided in a monthly report. Be sure to test different ideas throughout your recurring giving program and iterate based on where your donors are the most engaged.
How to Launch Your Recurring Donor Program
1. Choose a CRM That Can Facilitate Your Recurring Donor Program.
The right technology is crucial to launching a successful recurring giving program. Components such as automation, donor experience, and scalability all hinge on choosing the right nonprofit fundraising software and using it to engage donors and run your program without administrative strain.
Below are key features a constituent relationship management (CRM) system should include in order to efficiently manage a recurring giving program:
Donor segmentation and tagging: Your CRM should be able to segment and tag donors based on their giving history, donation frequency, and engagement. Create donor personas and reach your audience more effectively with targeted messages that resonate.
Communication workflows: Automated workflows, such as a thank-you email after each donation and a welcome series when a donor joins the recurring giving program, allow your team to keep donors engaged while maintaining a steady cadence of communication with your loyal supporters.
Payment processing integration: Integrations with secure payment processors will allow donors to easily set up recurring payments.
Analytics and reporting: Built-in reporting and analytics tools will allow your organization to track recurring giving trends and measure success.
Evaluating your current CRM is a crucial first step to successfully implementing a recurring giving program. When evaluating solutions, consider researching tools with the above features, whether your organization is searching for a new platform or a first-time platform.
2. Design and Test Your Recurring Giving Form.
The donation form is the moment of truth for your donors to become sustainers. An effective form reduces friction, guides decision-making, and reassures donors as they commit to your recurring giving program instead of selecting a one-time gift option. The strength of your donation form will often determine whether donors remain one-off givers or long-term supporters.
Below are key tips for creating a donation form that are sure to convert visitors into recurring donors:
Keep the form short and user-friendly to streamline the donation process and prevent donors from exiting the page before making a donation.
Highlight recurring giving options directly on the form by offering suggested monthly giving amounts, such as $10 or $25 per month.
Emphasize the impact a monthly donation will have to encourage donors to select a recurring giving option. For example, include a statistic such as, “Your monthly gift of $50 will provide 5 meals to families in need.”
Provide flexible payment options, such as credit card, PayPal, ACH, or DAFPay, to appeal to donors’ preferred payment methods.
Test the performance of your donation form and make changes as necessary to optimize your results. For example, testing different suggested giving amounts and different impact statistics will provide clarity on components that are effective and those that may need to be adjusted to maximize donor engagement.
3. Launch and Promote Your Recurring Donor Program.
Finally, the time has come to move from strategy to execution! A successful program launch isn’t just a matter of “going live,” but requires thoughtful promotion and active oversight. In order to receive maximum engagement towards your program, it’s important to think critically about the audience you want to target and who you are hoping to reach through your efforts.
There are multiple ways to promote a new recurring giving program to communicate across audiences:
Launch a multi-channel campaign. Different channels will help you reach a broader audience, communicating the launch of the new recurring giving program to new and current donors. For example, prospective donors may learn about your recurring giving program as they explore your organization’s history on your website, while long-time donors may join after receiving a handwritten letter from your executive director.
Tailor your messaging based on the audience you’re targeting. According to Getting Attention’s marketing statistics, segmented digital campaigns produce up to 760% more revenue compared to non-segmented campaigns. The more personalized your messages are, the more likely they are to receive a response!
Consider offering a small incentive to early joiners of the program. Merchandise branded to your nonprofit and program perks can be especially enticing.
Your recurring giving program should be an evolving initiative. Continue to iterate and improve upon the program as you gather more data, and periodically refresh with new marketing tactics and stewardship so that your program continues to see success far past the launch.
If your organization is considering launching a recurring giving program to secure a long-term sustainer base, then take the first step to audit your current donation experience. Identify any kinks or areas for improvement in the process before developing a recurring giving program. This will help mitigate any potential issues.
Sustainers are the key to long-term success and stability for your nonprofit, and building a dependable and reliable donor base will help your organization continue to support its mission.
