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Most nonprofits and charitable organizations thrive on the generosity of their donors. Offering recurring donation options to your donors lets them contribute on a schedule.
This article will shed light on the benefits of recurring donations and tips on starting a recurring donation program for your nonprofit.
4 Reasons Why Recurring Donations Are Critical for Nonprofits
Acquiring recurring donors helps you build a strong foundation for your nonprofit. Here are a few benefits of investing in recurring giving programs:
1. Consistent Revenue Stream
A steady stream of funds helps nonprofits plan their initiatives better.
One-time giving increases during seasonal donation days, but you must bear the annual operating costs.
With monthly recurring donations, you can allocate resources accordingly to streamline operations. It also gives you the confidence to take on long-term projects.
Monthly help also offers stability during unexpected situations that may impact cash flow, like pandemics or natural disasters.
2. Increased Donations
Unlike one-time donations, recurring donation programs allow donors to contribute smaller amounts at regular intervals. Recurring donations can be set up on a monthly basis, without putting a strain on one's finances, making it a convenient and affordable option.
As for nonprofits, requesting recurring gifts is easier to encourage long-term financial commitments.
3. Higher Donor Retention and Loyalty
Donors agree to recurring donations when they strongly believe in your cause. Regular giving showcases their commitment, implying their likelihood of continuing as donors and offering constant support.
Over time, they might increase their involvement by volunteering and attending your nonprofit’s fundraising events.
High donor retention increases the donor life cycle, resulting in your nonprofit's overall financial growth.
4. Lower Donor Acquisition Costs
While the average donor retention rate for nonprofits is 40-45%, even a 5% increase can boost donations by 25%.
For nonprofits, acquiring new donors costs 10x more than retaining existing ones.
Instead of hyper-focusing on new donors, develop a donor retention plan. Zeffy's 100% free donor management system allows you to monitor donor activity and gain valuable insights.
5 Effective Tips to Convert One-Time Donors into Recurring Donors
Turning one-time donors into recurring donors can be an easy process if you follow these best practices:
1. Thank Your Donors
Thank your supporters and encourage them to donate again. A simple acknowledgment shows that you value their contribution. It prompts them to become recurring donors.
Recognize their efforts through:
- An email
- A personalized hand-written thank you note
- An appreciation video
→ Read our nonprofit’s guide to writing a thank you letter.
2. Ensure You Have a Solid Recurring Donation Setup
Before asking supporters to donate regularly, ensure you have a strong setup in place.
Zeffy's online donation software allows you to collect monthly and yearly donations for free. You can accept multiple payment methods, send automated tax receipts and thank you emails, and rest assured that your donor information is secure.
3. Showcase the Impact
Along with thanking them, highlight how their contributions are creating an impact. You can give a detailed report of how their money was used.
Donors aware that their contributions are making an impact are more likely to donate regularly.
4. Be Transparent and Flexible
Let the donors know they can cancel or modify their donation at any given time. They will be more comfortable opting for recurring donations.
Offer a variety of options for the gift frequency.
5. Stay in Touch with Your Donors
To have an active community of recurring donors, communicate with them regularly. Use social media to interact with them and organize events where they can meet other changemakers.
You can also send them direct newsletters, emails, and forms to engage with them and collect feedback whenever needed.
Maintaining a relationship with a donor can go a long way. Ensure you keep them actively engaged regardless of the size of their donation.
How to Set Up Recurring Donations Program with Zeffy
Start a recurring donations program by creating an online donation form with Zeffy with these 8 simple steps:
Step 1: Sign up on Zeffy
Step 2: Create your online donation form
Step 3: Add Your General Information
Step 4: Customize Your Donation Form
Step 5: Enable Recurring Donations
Step 6: Share the Donation Form
Step 7: Promote the Recurring Giving Program
Step 8: Acknowledge Your Donors
Step 9: Track and Optimize Your Recurring Giving Campaign
You can further launch your recurring donation program, acknowledge your donors, and track your campaign with Zeffy!
Step 1: Sign up on Zeffy to Create a Free Donation Form
- Sign up on Zeffy to access a 100% free and simple fundraising tool. If you’re an existing user, you can simply login.
- Click on ‘New Form’ and pick a donation option.
Step 2: Add Your General Information
- Edit the form title and select a language.
- Add a compelling description of your nonprofit initiatives and how you will use the donations.
Step 3: Customize Your Donation Form
- Edit the pre-suggested donation amounts with a description of each amount’s impact.
- Activate the generate tax receipt option to automatically get a tax receipt after each donation.
- Include your logo, video, or image to make the form interesting.
- Add custom questions for the donors.
- Create a customized thank you email for your donors to receive after completing the donation.
Step 4: Set Up Recurring Donations
- Go to the "Donations" tab and click "Set up recurring donation."
- Enter the details of the recurring donation, including the amount, frequency, and start date.
- Choose the payment method and provide the necessary information.
- Review the details and click "Save."
- Once the recurring donation is set up, the donor's information will be automatically charged at the specified frequency. This eliminates the need to manually process donations and ensures your organization receives regular support.
Step 5: Share the Donation Form
- Create a donate button to add the donation form link to your donation page.
- Embed the donation form to your website using your unique QR code.
Here are some additional steps to enhance your setup:
Step 6: Promote the Recurring Giving Program
Promote your program through different channels like:
- Your website
- Email campaigns
- Your social media account
Create eye-catching graphics, short videos, and compelling captions that grab attention and clearly communicate the benefits of regular giving.
Utilize features like Instagram Stories, Facebook Live, and Twitter threads to share success stories. Showcase the impact of recurring donations, and provide easy sign-up links.
Engage with your audience by responding to comments, hosting Q&A sessions, and encouraging supporters to share your campaign with their networks to attract new recurring donors.
Step 7: Acknowledge Your Donors
Engage with your recurring donors regularly. Use Zeffy’s automated email feature to send personalized thank-you emails and reminders. Update them about the mission’s progress. Share stories about the impact of their charities.
Step 8: Track and Optimize Your Recurring Giving Campaign
Monitor the performance of your recurring giving program. With Zeffy, you can track payment methods to simplify reporting.
You can monitor email open rates, donor clicks, and unsubscribes. It will help you improve the donations page and adjust your outreach strategies.
Add payment details from offline donations to track centralized giving.
Summing Up Basics of Recurring Donations
Recurring giving ensures financial stability and a sustainable donation source for your nonprofit. The benefits go beyond having a steady revenue stream.
It helps extend your donors’ lifecycle. Recurring gifts enable them to contribute more frequently to a cause they support. Combining recurring contributions with other fundraising methods can help your nonprofit achieve great success.
FAQs
What is the average recurring donation?
The average monthly donation made online is approximately $52, while the average one-time donation is around $128.
How do you acknowledge recurring donations?
Acknowledge nonprofit recurring donations by:
- Send an immediate thank you email confirming that you received the donation. Make sure to include the contact details in case donors have any questions.
- Call donors directly or send a personalized acknowledgment letter.
- Highlighting your donors on social channels.
- Invite them to your events to appreciate their contributions.
- Sending gift baskets to show that you value their donations.
Is it better to donate monthly or one-time?
One-time donations are larger and have an immediate influence. Yet, monthly donations can expand your impact.
Recurring donations compound each year and have a higher long-term impact. Even a small monthly gift can start building substantial support with time.
