A brief fundraising guide to monthly giving
The focus of many fundraising campaigns is to reach as wide an audience as possible, which has both benefits and drawbacks. While nonprofit organizations can likely get their message to a sizable group of people, it’s unlikely that a large percentage of them will be inspired to donate because the message won’t resonate with them. What’s more, charitable groups that use this type of strategy won’t be able to take advantage of recurring gifts, which can strongly influence loyalty and future participation in pledge drives.
According to The NonProfit Times, the retention rate for individuals who contribute only once ranges between 41 and 50 percent. In other words, organizations have a 50-50 shot of hanging onto this type of donor. On the other hand, roughly 70 to 80 percent of those who have signed up for a recurring giving program will remain active as contributors.
- One approach organizations can take, according to The Chronicle of Philanthropy, is to make monthly donations the default option when individuals sign up to give the first time.
- It’s also important to stress how convenient and logical it is to make a recurring gift. Make sure donors recognize they won’t have to submit their payment information every month and can easily stop if they wish to cancel.