What are the benefits of using recurring donations for non-profits?

1 Why recurring donations matter

Recurring donations are regular contributions that your donors make to your non-profit, usually on a monthly, quarterly, or annual basis. They are different from one-time donations, which are given only once or sporadically. Recurring donations matter because they provide you with a steady and predictable source of income, which helps you sustain your programs and services, especially during times of crisis or uncertainty. They also show that your donors are committed to your mission and vision, and trust you to use their money wisely.

2 How recurring donations increase retention

Recurring donations increase your donor retention rate, which is the percentage of donors who continue to support your non-profit over time. Retention is crucial for your non-profit's growth and sustainability, as it costs more to acquire new donors than to keep existing ones. Recurring donors tend to have higher retention rates than one-time donors, because they are more engaged, loyal, and satisfied with your non-profit. They also receive less solicitation from you, as you don't need to ask them for money every time you launch a campaign or appeal. Instead, you can focus on thanking them, updating them, and involving them in your work.

3 How recurring donations reduce costs

Recurring donations reduce your fundraising costs, which are the expenses you incur to raise money for your non-profit. Fundraising costs include staff salaries, marketing materials, software fees, event expenses, and more. Recurring donations reduce these costs by simplifying your fundraising process, saving you time and resources. You don't have to spend as much on acquiring new donors, creating new campaigns, or processing multiple transactions. You can also leverage online platforms and tools that automate and streamline your recurring donation system, making it easier for you and your donors.

4 How recurring donations enhance impact

Recurring donations enhance your non-profit's impact, which is the positive change you create in the world through your programs and services. Impact is the ultimate goal of your non-profit, and it depends on your ability to deliver quality and effective solutions to the problems you address. Recurring donations enhance your impact by allowing you to plan your budget more accurately, allocate your resources more efficiently, and invest in your capacity and innovation. You can also use recurring donations to demonstrate your impact to your donors, by showing them how their consistent support makes a difference in the lives of the people or causes you serve.

5 How to implement recurring donations

Implementing recurring donations is not as complex as it may seem. To start or improve your recurring donation program, set a clear and realistic goal, identify and segment your target audience, create and communicate a compelling value proposition, choose and integrate a reliable online platform, promote and ask for donations through various channels, monitor and evaluate your program regularly, and thank and steward your donors frequently. Recurring donations are beneficial to both non-profits and donors - they provide increased revenue, retention, impact, convenience, satisfaction, and meaning. Consider using recurring donations as part of your fundraising strategy to take your non-profit to the next level.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?