Typically, six from every 10 donors who gave to your organization this past year won’t give again this year. However, you can retain more donors (and raise additional money) by kicking off a monthly giving program.
For the fence?
Listed below are five explanations why a monthly giving program will benefit your organization:
1. Maintaining a monthly giving program is simple.
Using online fund-raising software, you will offer donors a seamless and secure way to provide monthly. Numerous fund-raising software systems, donors only need to enter their information once, and whatever funds they pledge to donate monthly will be automatically drafted from their accounts into yours. Typically, all monthly gifts are instantly reflected in your software and acknowledged via email.
2. You’ll retain more donors year after year.
The average donor retention rate is 43 percent, but results can skew much, higher. Huge selection of their clients have observed a retention rate of 90 percent or more for donors who registered to give monthly. Which means that a monthly giving program gets the power to practically double your retention rate.
3. Monthly donors give more
Every little bit helps, right? The benefit of monthly giving is that every tiny bit keeps coming the right path 12 times a year — and not only one year.
Instead of giving once and dropping from the map, monthly donors have a tendency to give on a recurring basis for five to seven years typically. In a research study by Third Space Studio, a nonprofit consulting firm, organizations with budgets below the $2 million mark reported recurring donors giving $625 each year!
4. You’ll rest easy and enjoy more time to concentrate on your mission
Recurring donations are funds you can depend on. In case your monthly giving program makes up about a good amount of your annual revenue, you can funnel a few of your time and effort you’d put into fund-raising into furthering your mission. Visit this website to get more insight, PaidForGood
5. You’ll offer donors a convenient way to give
Giving should be easy. Which has a monthly giving program, donors can feel great about supporting your cause year-round without the trouble of constantly visiting your site to donate or mailing a check.
Because, you’ll likely have to convince your board that it’s worthwhile before you begin prepping, we rounded up statistics and pointers that will keep your proposal quick, informative, and effective.
Here are Three Ways to Get Board Approval:
1. Let the numbers do the talking
Board members think in numbers, so it’s better to lead with them.
The Monthly Donor Calculator keeps expectations in balance, with a conservative estimate that calculates the impact of convincing how much earnings you’ll raise when just 3 to 15 percent of your donors to become listed on your monthly giving program. (Although we’ve seen organizations with 20 percent all the way up to 60 percent of donors giving monthly!)
2. Emphasize the impact a monthly giving program might have on retention
Organizations who have monthly giving programs increase donor retention for those donors from 43 percent to 90 percent. According to fundraising professor Adrian Sargeant, you’ll double the lifetime value of your donors by increasing your donor retention rate by just 10 percent!
3. Highlight the result a monthly giving program can have on existing donors
You will generate more income from existing donors if indeed they sign up for your monthly giving program. Furthermore to giving to total annual appeals, existing donors who choose to donate monthly could move near to major donor status.