Making the Most of Monthly Giving

 

Image via Bloomerang

Monthly or recurring giving is a great way to raise more money and give you a constant stream of revenue throughout the year. More nonprofits are taking advantage of this. According to CauseVox, 54% of donors give through a sustainer (recurring) program, with 82% giving monthly.

Plus, monthly giving will raise your retention rate. According to the Fundraising Effectiveness Project, the retention rate for monthly donors is 90%. These donors are committed to your organization!

How to get started

If you don’t already have a monthly/recurring giving program, get one set one up before your next big appeal and let your donors know about it. While this post will focus on monthly giving, you should certainly give your donors other options for recurring giving, such as quarterly.

Setting up a monthly giving program will take a little work upfront, but will pay off in the end.  Mention it in your appeal letters and make it a prominent option on your donation page. How to Create a Monthly Giving Program for Your Nonprofit

Get donors on board

One way to get monthly donors is to ask your current donors to switch to monthly giving. Send targeted appeals to donors who have given at least twice. These donors have already shown you their commitment.

Let them know how much you appreciate their support and invite them to join your family of monthly donors. Show them how their $50 or $100 gift is helping you make a difference and how they can help even more with gifts of $5 or $10 a month. The 7 Steps to Launching a Monthly Giving Program at Your Non-Profit

Monthly donors get their own special appeal

If you already have monthly donors, send a special appeal just for them. Don’t send them a generic appeal that doesn’t recognize that they’re monthly donors. You should be personalizing and segmenting all your appeal letters, anyway.

Thank them for being a monthly donor and let them know you couldn’t do your work without their continued support. Politely ask monthly donors who’ve supported you for at least six months if they can upgrade their gift.

Keep in touch throughout the year

I donate monthly to a number of organizations and wrote about my experience earlier this year. Raise More Money With Monthly Gifts

Some organizations do a better job of communicating with their monthly donors than others. Be one that shows these donors how much you appreciate them.

Since your donors have committed to donating every month, show them the same courtesy by communicating with them at least once a month. You could send an e-mail update and at least a couple of updates by mail. Show your donors how they’re helping you make difference in your updates. Share a story or give specific examples.

A few ways I’ve seen organizations recognize their monthly donors are by giving them a special shout out in their newsletter, thanking them in their annual report, and inviting them to take a tour of the organization. Other ideas could include an open house, a thank you video, a thank you postcard, or a handwritten note. Whatever you do, keep in touch throughout the year and make your monthly donors feel special.

Take advantage of this opportunity to raise more money and boost your retention rate by starting or enhancing your monthly giving program.

More monthly giving resources.

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Raise More Money With Monthly Gifts

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Although I often encourage monthly (or recurring) gifts as a great way to raise more money, I just started making them at the end of last year. I made all my pledges online, and it was easy to do.

It should also be relatively easy for you to start or grow a monthly giving program. Of course, this doesn’t just include asking for donations. You’ll need to thank your monthly donors and stay in touch throughout the year.

Here’s what you need to get started.

Make a special request

You should always promote monthly giving in your fundraising appeals. Your best bet to get a monthly commitment is long-term donors. One idea is to send specially targeted appeals to donors who have given for at least two years. Thank them for their past support and ask them to upgrade to becoming a monthly donor. Their previous donation of $50 could become $5 a month or $100 becomes $10 a month.

Make it easy

Be sure monthly or recurring giving options are prominent on your pledge form and donation page. Let your donors know what $5, $10, $15 etc a month will fund.

Make the online process easy, but keep in mind that some donors won’t want to set up their monthly giving online. Some may want to do this by mail or phone, and if it’s by phone, make sure there’s a friendly person on the other end to help them.

If possible, make one person responsible for monthly giving. There needs to be a contact person if your donor needs to change her credit card/bank account information or has questions.

Create an attitude of gratitude

Welcome your monthly donors with open arms. If they’re first-time donors, welcome them to your organization. If they’re current donors, thank them for going the extra mile and becoming a monthly donor.

Most of the organizations I donated to thanked me specifically for being a monthly donor. Some did it better than others.  One organization refers to their monthly donors as Friends for all Seasons. Another told me “I have joined an elite group of dedicated supporters we call our Friends of the Center.” Another thanked me for being a Monthly Partner.

These organizations are telling me I’m extra special, and most of my gifts were $5 a month.

Several organizations send me monthly thank you letters either by mail or email. While this is nice, most of them are exactly the same generic thank you every month. One sends a statement, but it includes a different update each month.

Here’s how you can do better. Yes, send your these donors a thank you each month, but don’t resort to the same old same old. One organization that helps low-income families does a good job of sending engaging updates. Here’s an excerpt from their most recent email thank you.
Boys with shoes

When a mother of three children picked up her children’s Kidpacks, she burst into tears and said “My kids will be so happy.” She couldn’t afford to spend extra money on new clothes, shoes, books or school supplies because she was barely making ends meet.

Much better than a boring letter or receipt.

Take your donors on a journey

You want to stay in touch with your monthly donors and let them know how they’re helping you make a difference. You can do this with your monthly thank you letters and other updates. You may also want to consider a special newsletter just for monthly donors.

Another idea is to introduce your monthly donors to an individual or family your organization is working with. Let’s say you run a tutoring program. You can introduce your donors to Kira and her tutor, Sophia. Each month you can share updates on how Sophia is helping Kira do better in school.

Make your monthly donors feel special

Of course, all your donors are special, but go out of your way to show the love to your monthly donors. Find creative ways to show appreciation. You could make a video or hold an open house just for monthly donors. You want them to stay committed to being monthly donors for a long time.

Erica Waasdorp is an expert in monthly giving and has tons of information to help you.

And here are some more monthly giving tips.

18 Tips to Create a Wildly Profitable Monthly Giving Program

3 Tried and True Techniques That Encourage Monthly Giving

 

The Good, the Bad, and the Ugly in Year-End Fundraising – Part One

At the end of November, I made year-end donations to 25 organizations. Because I was worried about people who would be left behind in the new administration, 11 of these were new donations.

I wish I could tell you that all these organizations sent glowing thank you letters and have been following up with engaging updates and minimal additional requests for donations, but, alas, that is not the case.

Some organizations are doing a better job of communicating than others. Here is the good, the bad, and the ugly of what I experienced after I made my year-end donations.

Saying thank you

I made all my donations online, but only four organizations sent me thank you letters, and one sent a handwritten postcard. I’m a big believer in sending a thank you by mail or making a phone call even if someone donates online.

Two of the letters started with the dreaded “On behalf of.“ If you’re sending something on your letterhead, I already know it’s coming from your organization. The first words in your letter should be Thank you or something like You’re incredible.

One of the letters included a pre-printed Thank You! in big, bold, blue scripted letters at the top. Another opened with Welcome, and thanks so much … since I’m a new donor. These are simple things you can do to make your letters stand out.

All of the organizations sent email thank you messages. Some were generic receipts. Others opened with a story and an engaging photo.

Automatic emails won’t be personalized, which is why you should also thank by mail or phone. You can, however, still write a warm, heartfelt thank you message.

Another way to stand out is with a good email subject line. You have to include a subject line, so give some thought to it. Many of the organizations said thank you in the subject line.  One acknowledged it was a monthly gift.

A couple of good examples are Thank you, Ann and Thank you for your generosity. Some not so good examples are Donation received, Thank you.Your gift has been received (they get additional demerits for using the passive voice), and X organization Gift Acknowledgement

If you use a lame subject line, it’s less likely someone will even open your thank you email. Once they do, inspire them with opening lines such as You did something incredible, You are taking a stand for justice or You did something important.

Welcoming new donors

I made a number of first-time donations, but I’m not feeling a whole lot of new donor love. As mentioned above, I did get welcomed as a new donor and the thank you letter included links of ways to get involved.

One organization offered me a t-shirt, which I declined.  A thank you letter included contact information and a link to tell the organization why I supported them. Another invited me to take a tour of the organization, which is a great way to connect.

Otherwise, it was business as usual. Don’t fall into that trap. You need to go the extra mile to welcome new donors. With first-time donor retention rates at about 30%, you can’t afford to be complacent.

Monthly giving

This is the first time I’ve done monthly giving – approximately half of my gifts were monthly ones. I actually got more response to being a monthly donor than being a new one.

One organization gave me the name of a contact person if I needed to change anything. Another specifically sent me a story letting me know how my monthly donation is helping them make a difference.

Here’s a good example of a way to communicate your thanks to your monthly donors  –  I really can’t emphasize enough how much we appreciate our monthly donors. Your consistent support is the backbone of our program.  Another organization refers to their monthly donors as Friends for All Seasons.

A different organization sent me an email thank you acknowledgment for the second installment of my monthly gift. I assume this will be a regular occurrence, which is a great idea. You want to encourage monthly donations and ensure your donors will keep supporting you this way. Setting up an engaging thank you email to go out each month is a great start.

Stayed tuned for Part Two where I share the good, the bad, and the ugly of how these organizations are staying in touch, or not.