9x Donor Value with Recurring Giving

Everyone likes to feel like they’re part of something bigger than themselves. Like every day, they’re doing just a little something to make the world a better place.?

Recurring donations do just that for potential donors. It invites them in the door and gives them a seat at the table. Bringing them along for the journey and showing them that their contributions are the reason for an organization’s success.

Establishing that connection is extremely important—and the numbers prove it.

Recurring donors are 9x more valuable than one-time donors. - The State of Modern Philanthropy 2023

Attracting more recurring donors leads to sustainable revenue growth. Of the top nonprofits on Classy, nearly 40% of their revenue comes from recurring donors.

But the benefits don’t stop there. Recurring donors help you grow exponentially. Your top-line revenue will increase yearly with a more extensive, solid donor base. And you’ll have a steady stream of revenue that you can count on.

So now that you know the benefits of recurring donors, here’s how to get and keep them.

Eliminate Adoption Barriers

When you only have a few seconds of people’s attention, making things as easy as possible is essential. Start with your payment options. 20% of supporters reconsidered donating when their preferred payment method was unavailable.?

And that number only increases when looking at younger generations. Adding payment options like PayPal and Venmo makes millennials 72% more likely to donate to your cause.

Most importantly, don’t forget to go mobile. At least half of campaign traffic comes from mobile devices. Optimizing donation pages and offering alternative donation options like digital wallets can significantly increase donor revenue .

Make Donors Feel Valued

Whether it’s a team, a family, or a community, everybody wants to feel like they’re part of something. Monthly giving programs and donor recognition are a great way to do just that.

Maybe it’s a special day or an upcoming event, but a well-executed campaign can attract new donors and convert existing donors into recurring ones. It’s also an opportunity to rally donors and give them something to get excited about.?

Denver Rescue Mission did a great job of this with its ‘Double Your First Three Months of Giving’ challenge. It led to 125 new or upgraded monthly donors with an average long-term value of $580,000! Changing lives for Denver residents experiencing homelessness every day.

Another way to connect with your donors is by celebrating and recognizing their achievements. Social posts, newsletters, and recap emails are perfect for spotlighting donors and increasing their sense of community.

Finally, show donors their impact. Let them see the changes you’re making with their money. Keep them informed of big decisions, new initiatives, and success stories.

Retain, Retain, Retain

Donor retention is critical to the long-term success of your fundraising endeavors. So the big question is, how do you retain your donors?

First, it’s important to keep your donors engaged. Building a robust email marketing campaign and following up with your donors on a regular basis does just that. Send them updates on the business, significant accomplishments, and new initiatives.

Another way to increase donor retention is by hosting events and meeting your donors face-to-face. Not only is this a fun way to connect, but it makes donors feel valued. Plus, dressing up and going to a gala is fun for everyone.

Like galas and events, rewarding your donors is an effective way to keep them around. Give them real-life perks—like gift cards, dinners, etc.—when they reach milestones in their donating journey.

The average monthly donation is $31, and monthly donors have the highest retention rate. - The State of Modern Philanthropy 2022

And lastly, don’t forget to be flexible. There’s no one-size-fits-all strategy to donating. Some people want to give monthly, some want to give yearly, and some might even want to give weekly. It’s up to you to present an offering with a spot for every donor.

Classy is a giving platform that enables nonprofits to connect supporters with the causes they care about. Classy's platform provides powerful and intuitive digital fundraising tools to convert and retain donors.