Making Connections With Your Monthly Donors

Monthly giving on the rise. If you haven’t capitalized on this, what are you waiting for? This post won’t focus too much on starting or growing a monthly/recurring giving program, although if you’re interested in that, here’s more information.

10 Quick Tips to Create a Great Monthly Giving Program

I want to focus on making connections with the monthly donors you already have.

We’re edging into summer, and while this is a slower fundraising season, it’s a good time to connect with your donors, whether they’re brand new or longtime supporters.

Make a plan

Create a plan for your monthly donor communication. Although I’m emphasizing summer, you need to communicate with your monthly donors (and all donors) throughout the year. I like to say because these donors support you every month, you should reciprocate by communicating with them at least once a month.

You can incorporate this into your communications calendar. Fill it with ways to show gratitude and share updates. You can use different channels. Here are some ideas to get started.

Send something by mail

How often do you get something personal in the mail? Not often, right? And when you do, it stands out.

Take some time this summer to create a postcard thank you and/or update or send a handwritten note. Your donors will really appreciate it.

Create a video

Videos are a great way to connect and they’re not that hard to create. If you can personalize it, all the better. Otherwise, you can create a general one that thanks your monthly donors.

5 Thank You Video Examples to Inspire Your Nonprofit

You can also create a video that gives a behind-the-scenes look at your organization or a virtual tour. 

Spruce up those automatic thank you emails

Those automatic thank you emails you may have set up don’t count as part of your monthly donor connection plan. It’s fine to create these, but you don’t have to. While these monthly acknowledgments are helpful, they’re usually uninspiring.

Spruce them up a little and change the content every few months. Use this as an opportunity to share some updates.

Here’s one that could use some work – Thank You for Your Recurring Donation. You have helped us continue our mission in a meaningful way. 

Talk about vague. A specific example of how a donor helped would improve this. Many of these acknowledgments are just receipts and a receipt is not a thank you.

Here’s a  better one. 

Thank you for donating to Malala Fund!

More than 130 million girls around the world are out of school today. Malala Fund believes that girls are the best investment in the future peace and prosperity of our world. Your gift supports our work to see every girl learn and lead without fear. 

Follow Malala Fund on Facebook, Instagram, Twitter, and blog for updates on our fight for girls’ education.

With gratitude, 

Malala Fund

Besides thanking their donors, they also offer other ways to engage.

Get noticed with an enticing subject line

Most likely you’ll communicate by email, which has its pros and cons. It’s easier and less expensive than a postal mailing, but since people get an enormous amount of email, they might miss your message.

One way to get noticed is to use an enticing subject line. Here’s one I like from Pet Partners – Your monthly gift in action 

It goes on to tell a story about a therapy dog who visits with soldiers before and after their deployments.

Here’s another good one, although it wasn’t specifically for monthly donors –  I found a baby bird! What should I do?

This definitely captures your attention and makes you want to read more. 

Keep your donors engaged with good content

Congratulations, your donor opened your email message. You want to keep them engaged. The email I mentioned above gave you information about what to do if you find a baby bird, along with a link to a “handy chart.”

Get personal

Be sure to address your donors by name. I would also recommend separate communication for new donors and longer-term donors. 

Welcome new monthly donors. You can go a step further with different messages for brand new donors and single gift donors who have upgraded to monthly. Be sure to give special attention to longer-term donors. The average donor retention rate for monthly donors is 90% and you don’t want that to go down.

You can give shout outs in your newsletter and social media, but those won’t be as personal. Some organizations include a cover letter or note for their monthly donors in their newsletters. You could also create separate newsletters for monthly donors.

The key is to stay in touch and keep making connections.  The post below will give you more ideas. Maybe you can think of others. And you don’t have to come with 12 different ones. It’s okay to repeat them every few months.

Practical, Creative Ideas to Thank Monthly Donors

Don’t ignore your valuable, monthly donors. Keep making those important connections.

Some Lessons for Nonprofits After Doing my Taxes

I just finished tallying our 2020 donations for our taxes. Always a fun task. Going through all the donation letters and emails triggered a few insights I’d like to share.

Sending a yearly donation summary is very helpful

Most of the gifts I make are monthly donations, and organizations that sent a summary of all those gifts made it so much easier for me. I made some additional contributions when the pandemic started and those were also included.

You may not need to send a summary if someone just made one gift. Your thank you letter can include the important tax information, but there’s no guarantee your donor will keep that.

My suggestion is to send all donors a yearly summary of their gifts the following January. Send it by mail, if you can. This is also an opportunity to reach out. Make it more than just a receipt. Thank your donors and let them know how their gift helped your clients/community during the past year. Some organizations send two pages – one is a thank you letter and the other is a list of all the donations.

Did you forget about me?

I make a spreadsheet of all our donations. I’ll copy the one from the previous year and make changes as needed.

While I was doing this, I discovered I never gave to an organization that I had the previous two years. I forgot about them, but they also forgot about me.

My speculation is they never sent me an appeal. If they sent one by mail, I would have noticed it and made a point to donate again. If it came by email, who knows since I get so much of it.

I also don’t remember this organization communicating in other ways, such as showing gratitude and sharing updates.

I’ve now set up a monthly donation for this organization, so I won’t have to do anything until the credit card expires.

If you don’t even bother to send an appeal letter (and you should send at least one by mail for each campaign), you can’t expect your donors to always remember to give. Running a multichannel campaign with scheduled reminders will help. But you do need to ask, as well as communicate in other ways. 

Don’t let your donors forget about you.

No monthly donor hiccups last year

In past years, I noticed my monthly donations sometimes stopped getting charged to my credit card. Most likely it was because the organization changed their donation platform.

I’m happy to report that this year none of them mysteriously stopped charging. A few organizations did change their donation platforms, but contacted me ahead of time so I could switch to the new system.

If you’re planning to change your donation platform, be sure to give your donors a heads up so you don’t lose any donations. And, be sure to flag expiring credit cards, as well.

Pay attention to what’s going on with your monthly donors. These are some of your most valuable donors.

Donor communication is a mixed bag

It’s not surprising that some organizations do a better job of communicating with their donors than others. A few knock it out of the park, but most range from okay to nonexistent.

If you use PayPal for your monthly donations, they send a receipt each month. In some cases, that’s the only time I hear about that gift. Are you letting PayPal do your work for you?

Other organizations do send their own automated monthly gift receipts and that’s about it. I’ve mentioned before that these can be helpful, but don’t count as a legitimate thank you or any type of donor communication.

Besides monthly donations, I gave some additional donations last year to emergency campaigns when the pandemic started. Some organizations noticed, some didn’t – typical. One organization thanked me by sending a personalized video. Others sent handwritten thank you cards, as well as some pre-printed ones, but they were cards I received in the mail! 

It’s often the same few organizations that go the extra mile, so the rest of you need to step up.

Always remember that better donor communication will help you raise more money. 

Photo via www.audio-luci-store.it

Why Monthly Giving Makes Sense

A bit of good news from the fundraising world – monthly giving is on the rise! If your organization doesn’t have a monthly/recurring giving program or it’s fairly small, now is a great time to start or grow your monthly giving.

In this post, I’ll tell you why monthly giving makes sense (or cents) on so many levels, how to start or grow your program, and how to nurture it going forward. 

Monthly giving helps you raise more money

Monthly or recurring donations can help donors spread out their gifts and it’s easier on their bank accounts. They may be apprehensive about giving a one-time gift of $50 or $100. But if you offer them the option of giving $5 or $10 a month, that may sound more reasonable.  

It can also give you a consistent stream of revenue throughout the year instead of certain times, such as when you do individual appeals and (virtual) events and when grants come in.

Monthly gifts are smaller, but you can raise a lot of money with lots of small gifts. Political candidates do it all the time. Also, monthly gifts aren’t as small as you think. The average is over $20 a month.

It can also be a more feasible way to get larger gifts. A gift of $100 a month may be more appealing to a donor than giving a large sum all at once. Even if they start with a smaller donation, monthly donors are more likely to become major donors and legacy donors.

It raises your retention rate, too

The retention rate for monthly donors is an impressive 90%. That’s significantly higher than other retention rates. 

One reason is that monthly gifts are ongoing. But your donors have agreed to that, so this shows they’re committed to your organization. 

These are long-term donors

This post highlights Charity Water’s successful monthly donor program. The key to their success – they moved from a short-term approach to a long-term focus.

I know Charity Water is a large organization, but that doesn’t mean your smaller organization can’t take the same focus. Long-term donors should always be one of your priorities.

How to get started

If you don’t already have a monthly giving program, make this the year you start one. It will help you raise more money in what’s expected to be another tough fundraising year.

A good way to start is to invite your current donors to become monthly donors. Your best bet for monthly donors are people who’ve given at least twice. These are donors who have shown a commitment to you. 

That doesn’t mean you can’t ask first-time donors. This could be a good way to connect with donors from your most recent campaign. And if you haven’t officially welcomed your new year-end donors, do that now. 

Quick Tips to Create a Great Monthly Giving Program

How To Start A Monthly Giving Program (In 6 Simple Steps)

Make monthly giving the go-to option

Make monthly giving front and center in all your campaigns. It should be an easy option on your donation page. Include it on your pledge form and make it a prominent part of your appeal letter, maybe as a PS.

I can speak from personal experience that once I started giving monthly, that’s the way I wanted to give to all organizations. Your donors would probably agree.

A handful of organizations don’t offer a monthly giving option, which is a mistake. Some have a minimum donation, which I would also not recommend, if possible. If you do have a minimum, make it $5 a month instead of $10. 

If your reason to have a minimum donation amount is to save money on expenses, is that happening if your minimum deters someone from giving at all? You often have to invest a little to raise more money.

Make your monthly donors feel special

You need to do a good job of thanking your monthly donors. Go the extra mile and segment your monthly donors into new monthly donors, current monthly donors, and current donors who become monthly donors.

Segmenting Your Donors is More Important Than Ever

This way you can personalize their thank you letters to make them feel special. Be sure to mail a thank you letter, or even better, send a handwritten note. An email acknowledgment is not enough.

Many organizations send a monthly acknowledgment email or letter, and most are just okay. Some are basically only receipts, and as I mentioned in a recent post, your thank yous need to be more than a receipt. Yes, it’s helpful to know the organization received your donation, but you’re not practicing good donor stewardship if that’s all you do.

You could spruce up these monthly acknowledgments, both by not making them sound like they were written by a robot and by providing some engaging updates.

One thing you should do is send your donors an annual summary of their monthly gifts. This is extremely helpful for people who itemize deductions. Make this letter more than just a receipt. Thank your donors and let them know how their monthly donations are helping you make a difference.

[ASK AN EXPERT] How Often Should We Thank Monthly Donors, and How?

Practical, Creative Ideas to Thank Monthly Donors

Best Practices For Recognizing, Thanking And Retaining Monthly Donors

Reach out at least once a month

Your monthly donors made a commitment to you by giving every month. Make the same commitment to them by reaching out at least once a month.

You could create a special newsletter for monthly donors or include a cover letter referencing monthly donors. If that’s too much, you could give a shout out to your monthly donors and include information on how to become a monthly donor in your newsletter.

A thank you video is always welcome. Considering personalizing it, if you can. You could also offer a video tour or Zoom discussions for monthly donors.

Include a list of your monthly donors in a newsletter, annual report, or on your website. Donor lists are just one of many ways to show appreciation and not the only one, so do much more than just that. Of course, honor any donor’s wish to remain anonymous.

Thank yous, newsletters, and updates are not a one-time time deal. Keep it up throughout the year. Many nonprofits start out communicating regularly with their monthly donors and then disappear after a couple of months. You need to stay in touch with your donors right now.

Create a special section in your communications calendar specifically for monthly donors to help with this.

Go all out for your monthly donors

I highly recommend a contact person for your monthly donors in case they need to update their credit card information or make a change to their gift, hopefully an upgrade. Include this information in their welcome letter or email. I wanted to upgrade one of my monthly donations recently and the organization made it really easy by including a link in their monthly acknowledgment email. Yes, these emails can be useful.

Another way to help out your monthly donors is to let them know when their credit cards are about to expire. Don’t rely on your donors to remember this, because most likely they won’t, especially now. You also don’t want to miss out on any revenue. Remember, small donations add up.

Set up a system where you can flag credit cards that will expire in the next month or two. Then send these donors a friendly reminder email/letter or give them a call. 

You could encourage donors to give via an electronic funds transfer from their bank account instead. Then neither you nor your donors need to worry about credit cards expiring.

Once a monthly donor, always a monthly donor

Once someone becomes a monthly donor, you must always recognize them as such. You most certainly should send fundraising appeals to monthly donors, but not the same ones you send to other donors.

I think the best way to raise additional money from monthly donors is to ask them to upgrade their monthly gift. Be as specific as possible. For example – We’re so happy you’re part of our family of monthly donors and are grateful for your gift of $5.00 a month. We’re serving triple the number of people at the community food bank right now. Could you help us out a little more with a gift of $7.00 or even $10.00 a month?

You can also ask monthly donors for an additional gift during one of your fundraising campaigns, but you MUST recognize they’re monthly donors – We really appreciate your gift of $10 a month. Could you help us out a little more right now with an additional gift? We need to run our tutoring program virtually for the time being and we want to continue serving as many students as we can.

If you send the usual generic appeal, imagine your donor saying – “I already give you $10 a month and you don’t seem to know that.”

But if you let those committed monthly donors know you think they’re special, they’ll be more likely to upgrade or give an additional gift. Many monthly donors have stepped up and given additional donations during the pandemic. That’s what you want.

Don’t miss out on this proven way to raise more money, boost donor retention rates, and provide an easier giving option for your donors. 

Segmenting Your Donors is More Important Than Ever

A few weeks ago I mentioned one of the themes for your fundraising and communications this year should be this is more important than ever. I don’t need to remind you we’re not living in normal times.

I know you have a lot going on and it may be tempting to send all your donors the same appeal and thank you letter. Don’t do that. 

Your donors are not the same. Some donors have given for at least five years (these donors should get a lot of attention). Some are monthly donors. Yet, nonprofit organizations fail to recognize that and send everyone a one-size-fits-all letter. 

This is why you need to segment your donors. If you don’t segment your donors and send different letters to different types of donors, you’re telling them you don’t recognize them for who they are.

Don’t worry, you don’t need to create 100 different types of letters. Four or five should be sufficient. Your appeal and thank you letter will stand out if it’s not the same old, same old.

Here are a few different types of donor groups. Feel free to add more if that’s relevant. The more you can segment, the better. Investing in a good database will help you with this.

Current single gift donors

One of the biggest hurdles nonprofits face is ensuring first-time donors give a second time. If they keep giving after that, they’re showing their commitment to your organization. Don’t blow it by ignoring this.

An appeal letter to current single gift donors (Monthly donors get their own appeal. More on that below.) must acknowledge their past support. This is also a good opportunity to ask for an upgrade. Many organizations don’t do this, but it’s a good way to increase your revenue. Even in a pandemic and economic downturn, it’s okay to ask donors to give a little more. They will if they can.

If these donors give again, they should get a handwritten note, phone call, or letter letting them know how much you appreciate their continued support. If they’ve upgraded their gift, acknowledge that, too. 

Potential/new single gift donors

If you’re sending an appeal to someone who’s never donated to your nonprofit before, what is your connection to them? Are they volunteers, event attendees, or people on a list you purchased?

The more you can establish a connection, the better chance you have of getting a donation.

The retention rate for first-time donors is terrible. One of the reasons is poor communication. You can help boost your retention rate by making your new donors feel special.

New donors should get a handwritten note, phone call, or letter welcoming them as donors. Invite them to connect with you in other ways such as signing up for your newsletter, following you on social media, or volunteering.

Then a week or so later, send them a welcome packet by mail or email. Personalization is crucial with new donors.

Are We Sure An Automated Email Welcome Series For New Donors Is A Good Idea?

New monthly donors

Brand new donors who opt for monthly or other recurring donations get the same special thank you treatment mentioned above. Welcome them to your family of monthly donors. 

Current monthly donors

Your current monthly donors must get their own appeal that recognizes them as monthly donors. In this appeal, you can either ask them to upgrade their gift or give an additional year-end gift. 

When your donors renew or upgrade their monthly gifts, they, of course, get a super fabulous thank you.

Current donors who become monthly donors

Your current donors who decide to become monthly donors are also showing their commitment to you. They get a handwritten note, phone call, or letter thanking them for their continued support and for joining your family of monthly donors. From now on they should get specialized appeals and other communication targeted to monthly donors. 

Segmenting your donors can pay off

In this down economy, some donors may cut back on their giving. Don’t let them choose between organizations that communicate throughout the year with engaging, personalized appeals, thank yous, and updates and organizations who just send generic, one-size-fits-all communications.

You need your donors. Spending extra time segmenting your donors and personalizing your communications will be worth it if you can raise additional revenue and boost your retention rate.

4 Smart Donor Segmentation Strategies for Nonprofits

11 Ways To Segment Your Donors To Improve Your Fundraising

How to Effectively Segment Your Donors and Audiences 

Making Smart Investments is More Important than Ever

10688617385_ce1214d44d_w (1)Nonprofit organizations will be facing some tough times ahead. During an economic downturn, the need for nonprofit services grows while some donors won’t be able to give as much, if at all.

Your first inclination may be to make cuts or continue working with a bare-bones budget with the mindset “we can’t afford this.” 

I understand you want to be cautious. But you also want to use caution before you eliminate something you think you can’t afford. It may be something you should be investing in.

This is why you need to make smart investments. It may seem counterintuitive to spend money when you have so little, but if you make the right decisions, these investments can help you raise more money.

Invest in a good CRM/database

A good CRM (Customer Relationship Management)/database is a must for a number of reasons. First, it can help you raise more money. You can segment your donors by gift amount and politely ask them to give a little more in your next appeal – $35 or $50 instead of $25.

A good database can also help you with retention, which will save you money since it costs less to keep donors than to acquire new ones. You can personalize your letters and email messages. Some CRM’s also have an email component. Otherwise, make sure to invest in a good email service provider, too.

Personalized letters and messages mean you can address your donors by name and not Dear Friend. You can welcome new donors and thank current donors for their previous support. You can send targeted mailings to lapsed donors to try to woo them back. You can send special mailings to your monthly donors. You can record any personal information, such as conversations you had with a donor and their areas of interest.

You also want a CRM that everyone on your staff can access remotely. When the pandemic hit earlier this year and most everyone was forced to work from home, organizations that could access their CRM and still communicate with their donors had a clear advantage.

Invest in the best CRM/donor database you can afford, and Excel is not a database.

Nonprofit Software

Nonprofit CRM | Complete Guide to Choosing the Best Solution

Invest in monthly giving

Monthly donations are more important than ever now. If you already have monthly donors, or any type of recurring donor, you’ve been receiving a steady stream of revenue throughout the pandemic and economic downtown.

If you don’t have a monthly giving program or you want to grow the one you have, it’s not hard to do. Plus it’s a win-win for your organization since you can raise more money and raise your retention rate as well. The retention rate for monthly donors 90%. That’s significantly higher than other retention rates. 

It’s also easier for your donors if they’re worried about their financial situation, but still want to help. They can make small donations of $5.00 or $10.00 a month instead of giving the entire amount at once. 

Monthly giving is an investment you must make.

Invest in donor communications and that includes direct mail

Years ago, I was working at a nonprofit and our executive director said we shouldn’t do an e-newsletter anymore because we needed to concentrate on raising money.

I wish I knew then what I know now. Fundraising isn’t just about sending appeals. And to quote Tom Ahern – If you do better donor communications, you’ll have more money. 

Yet many nonprofits have a similar view. They don’t want to spend much time thanking their donors and sending newsletters and other updates, even though those types of donor communications can help you raise more money, provided you do it well. 

You don’t want to skimp on your communications budget and that includes direct mail. If you never or rarely use direct mail, you’re missing out on an effective and more personal way to communicate with your donors. Think of the enormous amount of email and social media posts you receive as opposed to postal mail. Your donors will be more likely to see your messages if you send them by mail.

Yes, direct mail is more expensive, but you don’t have to mail that often. Quality is more important than quantity but aim for three or four times a year, if you can.

Creating thank you cards and infographic postcards are a smart investment and a necessity, not a luxury. Thank you cards are a much better investment than mailing labels and other useless swag.

A few ways you can use direct mail without breaking your budget are to clean up your mailing lists to avoid costly duplicate mailings, spread thank you mailings throughout the year – perhaps sending something to a small number of donors each month, and look into special nonprofit mailing rates. You may also be able to get print materials done pro bono or do them in-house, as long as they look professional.

Shorter is better. Lengthy communication (goodbye long annual reports) will cost more and your donors are less likely to read it.

Of course, you can use email and social media, but your primary reason for communicating those ways shouldn’t be because it’s cheaper. It should be because that’s what your donors use. If your donors prefer you to communicate by mail, then you should honor their request.

You want to communicate with your donors at least once or twice a month. Use a communications calendar to help you with this.

5 Rules for a Successful Donor Communications Program

9 Best Practices for Communications That Stand Out

Nonprofit Fundraising: The Case for Direct Mail

Don’t limit yourself by saying you can’t afford certain expenses. If you invest in a good CRM/database, monthly giving, and donor communications, you should be able to raise more money.

Image by Thomas Lapperre  www.bloeise.nl.

Let Your Monthly Donors Know They Matter

49721980232_404e8b4a08_wI write about monthly donors a lot because it’s an important part of nonprofit fundraising.

Monthly donations are more important than ever now. If you already have monthly donors, or any type of recurring donor, you’ve been receiving a steady stream of revenue as we continue to navigate through this economic downtown.

You may have had events planned this spring that won’t bring in the money you had hoped for. But your monthly donations should keep coming in. If you’ve been fundraising during the COVID-19 outbreak, which you should be, you may be seeing some additional revenue. Keep it up.

Of course, your monthly donors, and all donors, are so much more than the money they give. They matter and they need to know that.

Check in with your monthly donors

If you’ve been silent the last couple of months, your first communication with your monthly donors needs to be a check-in. Ask how they’re doing. Let them know how much you appreciate their support and give specific examples of how their continued support is helping the people/community you serve right now.

Make a request for an additional gift or upgrade

Don’t send your monthly donors a generic fundraising appeal. Recognize them as monthly donors and thank them for that. Ask for an additional gift or upgrade. An additional one-time gift may be more feasible, but it never hurts to ask for an upgrade. 

Keep in mind your appeal needs to be clear, specific, and relevant to the current situation.

Do a great job of thanking your monthly donors

Once you receive a donation, your monthly donors get an extra special thank you. Thank them specifically for their additional gift or upgrade. If they’re new donors or current single gift donors who have become monthly donors, welcome them to your family of monthly donors.

If you’re one of the organizations that send thank you emails to your monthly donors each month, could you please make them less generic by addressing how your donors’ gifts are helping right now?

Promote monthly giving

When you’re fundraising, which you know you should be doing, put monthly giving front and center. Mention it in your appeal and make it a prominent part of your donation page.

If donors are worried about their financial situation right now, giving $5.00 or $10.00 a month may be more doable.

It will help you as well. On average, monthly donors give more. Besides being able to raise more money and have a steady stream of revenue, the retention rate for monthly donors is an impressive 90%. That’s significantly higher than other retention rates.

Monthly giving is a win-win for your nonprofit organization. 

Stay in touch with your monthly donors

Send updates to your monthly donors letting them know how their gifts are helping right now. I received an email from an organization with the subject line – Ann, look what you’ve done!  

The message opened with  – The stories below showcase how your invaluable monthly support is being put to action, responding to hunger on the front lines of the COVID-19 crisis. Each story included the ever so important, because of your monthly donations or because of your monthly support.

Try to stay in touch with your donors every week or two. It can and should be something relatively short. I’ve been recommending shorter, more frequent communication over the past few weeks.

You can do this! Keeping it short will make it easier.

What happens if monthly donors stop giving

There’s been some talk lately of donors discontinuing their monthly gifts. If that happens, reach out to them by phone or email and ask why. If they’re concerned about their financial situation, let them know you understand and hope they’ll be able to support you again in the future. Thank them for supporting you in the past and stay in touch with engaging updates.

4 Tips for Avoiding Monthly Donor Churn During COVID-19 (and Beyond)

If you find out donors stopped supporting you because of poor communication or they don’t feel you’re making enough of an impact, that’s something you can change.

While some monthly donors might be discontinuing their gifts, others are stepping up and giving additional donations. It will be different for every organization so pay attention to what going on with your monthly donors.

Good News About Monthly Donors…

Pay attention to expiring credit cards

Something else you want to monitor is expiring credit cards. If you haven’t already done this, set up a system where you can flag any credit cards that are going to expire in the next month or two. Don’t rely on your donors to keep track of this, especially now.

Email or call any donors whose credit cards are in danger of expiring. Of course, thank them for being a monthly donor, and include a donation link and/or give a phone number where they can update their credit card information. You could also encourage donors to give via an electronic funds transfer from their bank account instead. Then neither you nor your donors need to worry about credit cards expiring.

Your nonprofit may struggle for a while so you don’t want to miss out on these donations.

Your monthly donors made a commitment to you with their continuous support. Make the same commitment to them by letting them know they matter.

 

How Monthly Giving is a Win-Win for Your Nonprofit

48257299076_b34347f77e_wA few weeks ago I wrote about ways to help you become more successful in 2020. One of those was to emphasize monthly giving. I’d like to elaborate on that some more in this post.

Monthly giving is a win-win for your nonprofit. You can raise more money and boost your retention rate. Also, once donors opt into monthly giving, it’s an easier way for them to support your organization.

You can raise more money

Monthly or recurring donations can help donors spread out their gifts. They may be apprehensive about giving a one-time gift of $50 or $100. But if you offer them the option of giving $5 or $10 a month, that may sound more reasonable.

It’s easier on their bank accounts. It can also give you a consistent stream of revenue throughout the year instead of certain times, such as when you do individual appeals and events and when grants come in.

Monthly gifts are smaller, but you can raise a lot of money with lots of small gifts. Political candidates do it all the time. Also, monthly gifts aren’t as small as you think. The average monthly gift is $24 a month.

Check out this retention rate

The retention rate for monthly donors is an impressive 90%. That’s significantly higher than other retention rates. 

One reason is that monthly gifts are ongoing. But your donors have agreed to that, so this shows they’re committed to your organization. 

Getting started

If you don’t already have a monthly giving program, make this the year you start one. It’s not as hard as you think.

A good way to start is to invite your current donors to become monthly donors. Your best bet for monthly donors are people who’ve given at least twice. These are donors who have shown a commitment to you. 

That doesn’t mean you can’t ask first-time donors. This could be a good way to connect with donors from your most recent campaign. And if you haven’t officially welcomed your new year-end donors, do that now. 

Are you missing this key fundraising “system?”

Make monthly giving the go-to option

Make monthly giving front and center in all your campaigns. It should be an easy option on your donation page. Include it on your pledge form and make it a prominent part of your appeal, maybe as a PS.

I can speak from personal experience that once I started giving monthly, that’s the way I wanted to give to all organizations. Your donors would probably agree.

A handful of organizations don’t offer a monthly giving option, which is a mistake. Some have a minimum donation, which I would also not recommend, if possible. If you do have a minimum, make it $5 a month instead of $10. 

If your reason to have a minimum donation amount is to save money, is that happening if your minimum deters someone from giving at all? You often have to invest a little to raise more money.

Show some #donorlove

You need to do a good job of thanking your monthly donors. Go the extra mile and segment your monthly donors into new monthly donors, current monthly donors, and current donors who become monthly donors, which I explain more in the post below. 

The Importance of Segmenting Your Donors

This way you can personalize their thank you letters to make them feel special. Be sure to mail a thank you letter, or even better, send a handwritten note. An email acknowledgment is not enough.

Many organizations send a monthly acknowledgment email or letter, and most are just okay. Some are basically only receipts. And while it’s helpful to know the organization received your donation, you’re not practicing good stewardship if that’s all you do.

You could spruce up these monthly acknowledgments, both by not making them sound like they were written by a robot and by providing some donor-centered updates.

One thing you should do is send your donors an annual summary of their monthly gifts. This is extremely helpful for people who itemize deductions. Make this letter more than just a receipt. Thank your donors and let them know how their monthly donations are helping you make a difference.

Reach out at least once a month

Besides showing #donorlove, here are some other ways to reach out to your monthly donors.

You could create a special newsletter for monthly donors or include a cover letter referencing monthly donors. If that’s too much, you could give a shout out to your monthly donors and include information on how to become a monthly donor in your newsletter.

Hold an open house for monthly donors. Even if they don’t attend, they’ll appreciate the invitation. You could also offer tours, either at a specific time or on request.

Include a list of your monthly donors in a newsletter, annual report, or on your website. Donor lists are just one of many ways to show appreciation and not the only one, so do much more than just that. Of course, honor any donor’s wish to remain anonymous.

Thank yous, newsletters, and updates are not a one-time time deal. Keep it up throughout the year. Many nonprofits start out communicating regularly with their monthly donors and then disappear after a couple of months.  

The Holy Grail of Fundraising

These donors made a commitment to you by giving every month. Make the same commitment to them by reaching out at least once a month. Create a special section in your communications calendar specifically for monthly donors to help with this.

Be accommodating

I highly recommend a contact person for your monthly donors in case they need to update their credit card information or make a change to their gift, hopefully, an upgrade. Include this information in their welcome letter.

Another way to help out your monthly donors is to let them know when their credit cards are about to expire. Don’t rely on your donors to remember this, because most likely they won’t.

Set up a system where you can flag credit cards that will expire in the next month or two. Then send these donors a friendly reminder email or letter. This will help you, as well, so you can keep receiving a steady stream of donations.

You could encourage donors to give via an electronic funds transfer from their bank account instead. Then neither you nor your donors need to worry about credit cards expiring.

Once a monthly donor, always a monthly donor

Once someone becomes a monthly donor, you must always recognize them as such. You most certainly should send fundraising appeals to monthly donors, but not the same ones you send to other donors.

I think the best way to raise additional money from monthly donors is to ask them to upgrade their monthly gift. Be as specific as possible. For example – We’re so happy you’re part of our family of monthly donors and are grateful for your gift of $5.00 a month. Could you help us out a little more this time with a gift of $7.00 or even $10.00 a month?

You can also ask monthly donors for an additional gift during one of your fundraising campaigns, but you MUST recognize they’re monthly donors – We really appreciate your gift of $10 a month. Could you help us out a little more right now with an additional gift? We want to expand our tutoring program to three more high schools.

If you send the usual generic appeal, imagine your donor saying –  “I already give you $10 a month and you don’t seem to know that.”

But if you let those committed, monthly donors know you think they’re special, they’ll be more likely to upgrade or give an additional gift.

Don’t miss out on this proven way to raise more money, boost donor retention rates, and provide an easier giving option for your donors. Read on for more about monthly giving.

Planning Your Monthly Giving Strategy For The Year: A Step-By-Step Guide

Quick Tips to Create a Great Monthly Giving Program

How to start a monthly giving program for your small nonprofit

Vector Art by Epic Top 10

Looking at the New Year with 20/20 Vision

49309556946_7d4841c90f_wHappy New Year, everyone! Wow, it’s 2020, and I couldn’t resist the 20/20 pun. Not only are we entering a new year, we’re also entering a new decade.

Many people use the New Year to make changes and improvements in their lives. You can do the same for your nonprofit organization. 

As with personal resolutions, you want to set realistic goals that you can stick with over time. Going back to the 20/20 theme, you want to set these goals and make these plans with clear vision.

Here are a few ways to help you ensure success in 2020.

You must have fundraising and communications plans

One key to success is good planning. 

If you haven’t made fundraising and communications plans yet, do that now! Don’t go too far into the New Year without plans in place.

Take a look back at 2019 to see what worked and what didn’t in your fundraising and communications. Incorporate what you’ve learned into your 2020 plans.

Be sure to include donor engagement and donor retention in your fundraising plan.

If you didn’t have a concrete plan last year and you weren’t as successful as you would have liked, that may be why.

Write your annual fundraising plan with these 6 steps

Here’s a Sample Fundraising Plan for Your Non-Profit

Do’s and Don’ts for Your Annual Fundraising Plan

12 (Amazingly Easy) Step by Step Fundraising Plan Templates

Build a Better Nonprofit Marketing Plan: Here’s How

How to Integrate Your Nonprofit Fundraising Plan With Your Marketing Plan

Measure your progress

Make sure you evaluate your progress at least once a quarter. It will be easier to stay successful if you can continually measure your progress and make any necessary changes before it’s too late.

20 KPIs For Your Nonprofit To Track

Pay attention to your donor retention

Make this a priority. You’ll have more success if you work to keep the donors you already have instead of focusing on getting new ones.

First, if you don’t already know it, figure out your retention rate. Do this after every fundraising campaign.

A Guide to Donor Retention

If it’s low, it’s something you can fix, usually with better communication. Donor retention is a huge problem for nonprofits. Your goal should be to have donors who support you for a long time.

It’s easier and less expensive to keep your current donors than to find new ones, so, once again, make donor retention a priority.

One Thing Most Nonprofits Stink at (Donor Retention) and How You Can Change It

3 Concrete Strategies to Address The Donor Retention Crisis

Also, the New Year is a good time to get in touch with any lapsed donors, especially ones who gave a year ago. They may just need a gentle reminder. 

Emphasize monthly giving 

Staying on the retention theme, the retention rate for monthly donors is 90%. Work on starting or growing your monthly giving program so you can have a bunch of highly committed donors. A good way to start is to invite your current donors to become monthly donors.

Incorporating Monthly Giving Into Your Fundraising

How to start a monthly giving program for your small nonprofit

20 Monthly Giving Intentions for 2020

Make building relationships a priority 

You may think the most important component of fundraising is raising money. While that’s important, so is building relationships with your donors. 

It’s hard to raise money year after year if you don’t build a good relationship with your donors. Every single interaction with your donors needs to focus on building relationships. That includes fundraising appeals. It’s possible to raise money and build relationships at the same time.

Good relationships with your donors will help you with retention.

Build Relationships With Your Donors Every Step of the Way

Build Loyal Donor Relationships in 3 Easy Steps

Show some gratitude, too

A big part of building relationships is showing gratitude to your donors. Many nonprofits do a poor job with this. 

You need to start by sending a heartfelt thank you immediately after you receive a donation and then find ways to thank your donors throughout the year. Put together a thank you plan to help with this.

Nonprofit Donor Thank You’s: What are You Doing to Stand Out?

Start the New Year off by making fundraising and communications plans. Then monitor your progress, pay attention to your retention rates, and work on building relationships with your donors. 

Best of luck for a successful 2020.

Give Your Monthly Donors the Attention and Recognition They Deserve

245744537_9b2401b807_mMonthly donors are special because they’ve committed to donating to nonprofits long-term. Retention rates for monthly donors are 90%, which is considerably better than retention rates for other types of donors.

You’d think because of this, organizations would be jumping for joy and giving these donors extra special attention. But you would be wrong. While some organizations do recognize their monthly donors, unfortunately, many do not.

This post will show you how you can give your monthly donors the attention and recognition they deserve. If you don’t have much of a monthly giving program or want to start one, here’s more information on that.

Incorporating Monthly Giving Into Your Fundraising

Welcome your new monthly donors

When someone becomes a monthly donor, whether they’re a first-time donor or have upgraded from a single-gift donor, welcome them into your family of monthly donors.

Be accommodating

I highly recommend a contact person for your monthly donors in case they need to update their credit card information or make a change to their gift, hopefully an upgrade. Include this information in their welcome letter.

Speaking of letters, tax season is upon us (oh joy), and several organizations have sent me a summary of my monthly donations. This is extremely helpful for people who itemize deductions. Make this letter more than just a receipt. Thank your donors and let them know how their monthly donations are helping you make a difference (more on that later).

Another way to help out your monthly donors is to let them know when their credit cards are about to expire. Don’t rely on your donors to remember this. I’m dreading the day I have to update my credit card information. Most likely I will miss some organizations. This will help you, as well, so you can keep receiving a steady stream of donations.

Make your thank yous more than just okay

When you send your initial thank you letter, you MUST recognize the recipient as a monthly donor.

Many organizations send a monthly acknowledgment email or letter, and I would say most are just okay. Some are basically only receipts. And while it’s helpful to know the organization received your donation, you’re not practicing good stewardship if that’s all you do.

You could spruce up these monthly acknowledgments, both by not making them sound like they were written by a robot and by providing some donor-centered updates.

One recommendation I have is to make sure every monthly donor gets at least one handwritten thank you note a year. You don’t have to write much but you will make a good impression.

Reach out at least once a month

Besides showing #donorlove, here are some other ways to reach out to your monthly donors.

Create a special newsletter for monthly donors or include a cover letter referencing monthly donors. I’m not always a fan of the letter from the Executive Director, so see if you can keep it donor-centered. You could also give a shout out to your monthly donors and include information on how to become a monthly donor.

Hold an open house for monthly donors. Even if they don’t attend, they’ll appreciate the invitation. You could also offer tours, either at a specific time or on request.

Include a list of your monthly donors in a newsletter, annual report, or on your website. Donor lists are just one of many ways to show appreciation and not the only one, so do much more than just that. Of course, honor any donor’s wish to remain anonymous.

Send an email update specifically for monthly donors.

Thank yous, newsletters, and updates are not a one-time time deal. Keep it up throughout the year. Create a special section in your communications calendar specifically for monthly donors.

Keep Monthly Donors Longer With These 6 Engagement Tips

Monthly donors get their own fundraising appeals

As I mentioned before, once someone becomes a monthly donor, you must always recognize them as such. You most certainly should send fundraising appeals to monthly donors, but not the same ones you send to other donors.

I think the best way to raise additional money from monthly donors is to ask them to upgrade their monthly gift. Be as specific as possible. For example – We’re so happy you’re part of our family of monthly donors and are grateful for your gift of $5.00 a month. Could you help us out a little more this time with a gift of $7.00 or even $10.00 a month?

You can also ask monthly donors for an additional gift during one of your fundraising campaigns, but you MUST recognize they’re monthly donors – We really appreciate your gift of $10 a month. Could you help us out a little more right now with an additional gift? We want to expand our tutoring program to three more elementary schools.

If you send the usual generic appeal, imagine your donor saying –  “But I already give you $10 a month and you don’t seem to know that.”

All your donors are special, but monthly donors are extra special. Don’t they deserve some attention and recognition?

 

A Few Ways You Can Raise More Money in 2019

Happy New Year! I expect many of you launched a year-end appeal last year. I hope it was successful. If it wasn’t, I have some suggestions about how you can raise more money – both now and throughout the year.

Reach out to your lapsed donors

Take advantage of this now. Look to see who donated in 2017, but didn’t give this year. It’s possible some people meant to give but were too busy.

Send these donors a personalized appeal or give them a call. Let them know you miss them and want them back. You can go back another year or two, as well.

Take a good look at your list of lapsed donors. They’re not all the same. Do you have someone who’s given consistently over the last few years, but not this year, or are you looking at a person who gave once five years ago?

Eventually you’ll want to move some of your lapsed donors to an inactive file. This will save you money because you won’t be mailing appeals to people who aren’t going to donate.

But you can raise more money with a pesonalized appeal to donors who are likely to give again.

5 ways to win back your lapsed donors

We Want You Back! A Simple Strategy for Reactivating Lapsed Donors

Emphasize monthly giving

A great way to raise more money is by having a monthly/recurring giving program. Monthly donors usually give more and their retention rate is 90%.

If you don’t have a monthly giving program, make this the year you start one. You can also try to get current donors to upgrade to monthly giving.

Your best bet for monthly donors are people who’ve given at least twice. These are donors who have shown a commitment to you. This doesn’t mean you can’t ask first-time donors. You can include information about monthly giving in the welcome packet you send to new donors. You do welcome new donors, right?

Donors who gave in November or December may not be ready to give again so soon. Make a plan to specifically invite people to become monthly donors in the spring or at other times of the year.

Incorporating Monthly Giving Into Your Fundraising

Quick Tips to Create a Great Monthly Giving Program

Remember the two R’s

Now I’m going to tell you how you can raise more money without asking for money. You need to remember the two R’s – retention and relationships.

It’s easier and less expensive to keep your donors than to find new ones. Yet, many nonprofits have abysmal retention rates, especially for first-time donors. Now is a good time to figure out your retention rate.

One way to raise your retention rate is with the second R – relationships. Building relationships with your donors is a key component of fundraising.

This starts with a good thank you experience and continues as you update your donors regularly throughout the year letting them know how they’re helping you make a difference.

One reason you may be behind in your fundraising goals is because you just blasted out a bunch of generic appeals without targeting them to specific donors and trying to build relationships.

How To Actually Calculate Donor Retention (The Right Way) & 8 Essential Tips For Effective Donor Retention

What Comes Next

The New Year is a good time to evaluate what’s working and what’s not in your fundraising. You should be able to raise more money by reaching out to your lapsed donors, starting or growing a monthly giving program, paying attention to your donor retention, and focusing on building relationships.

Photo by: http://401kcalculator.org