The Power of Recurring Donations: Convert 10% of One-Time Donors for Sustainable Giving

Originally posted at Mobile Giving Foundation Canada Blog

To maximize the impact of every dollar donated, nonprofits are increasingly adopting innovative strategies to stretch resources further. Monthly giving has become a cornerstone for sustainable funding, providing stability for organizations through steady, predictable donations. In fact,

The Giving Report 2024 by CanadaHelps highlights an 11% rise in monthly giving, reflecting a shift towards this stable support model, even amidst financial uncertainty.

For many donors, monthly contributions offer a more manageable way to give consistently, allowing them to make an impact without straining their budget. Suburban and rural families have embraced this model, contributing to the resilience of recurring donations during tough economic times. By not offering a monthly giving option, nonprofits may miss out on a critical source of sustained support, especially as alternative giving preferences continue to grow.

This is why forward-thinking nonprofits are embracing easy, recurring options like text-to-donate campaigns, allowing donors to set and forget their contributions. Instead of waiting for end-of-year appeals when resources are already stretched, monthly giving provides financial stability and builds a reliable foundation for lasting change.

Looking to boost donor retention, loyalty, and lifetime value? Hoping to reduce fundraising costs and improve cash flow? Implementing a monthly giving solution can amplify your mission’s impact, empowering donors to make a difference year-round.

If you answered yes to any of these questions, then you need to consider recurring monthly giving as a key part of your fundraising strategy, and the Mobile Giving Foundation Canada’s (MGFC) text-to-donate platform makes it easy (and affordable) for nonprofits to get started.

What is monthly giving?

Monthly giving involves setting up regular, automatic financial donations to the charitable organizations you support. Monthly giving has become an increasingly crucial aspect of non-profit fundraising strategies and enables them to design and invest in initiatives that generate long-term, sustainable change. It’s also a great predictor for future planning and forecasting. Through text-to-donate, donors can conveniently sign up for recurring donations, making it a great solution for those who want to contribute regularly with ease.

Charities often face challenges in reaching their monthly giving goals due to the expensive and complex outreach strategies they typically use. These tools require significant investment and extensive donor profiles, making monthly giving seem unattainable for many.

Why Donors Love Monthly Giving

For donors, it’s a convenient and hassle-free way to show their support and make a difference. They don’t have to worry about forgetting to donate or missing deadlines. They can also spread their donations over time and fit them into their budget.

Pro tips for effectively managing your monthly giving donors:

Donors should be thanked each month in a text message or email (if they have opted in) – Not being thanked has been cited as a major reason for unsubscribing from monthly giving. This also serves as a reminder to the donor that they are still signed up for monthly donations, avoiding any unrealized intent or forgetfulness down the road.

Give monthly donors the opportunity to participate in other donation campaigns. Monthly giving is a means to regularly contribute, but many donors will welcome the opportunity to give more if they can, so be sure to include them in future campaigns.

Effective communication about the allocation of funds and the outcomes of their donations is of utmost importance for engaging and retaining monthly donors. Failing to provide regular updates on how their contributions are being utilized and the impact they are having can create a disconnect. Actively share information about the use of funds and the tangible results achieved to foster a deeper sense of trust, transparency, and satisfaction with your valued monthly donors.

Following these tips will strengthen your monthly donor relationships and reinforce your donor’s belief in your organization’s mission and the significance of their ongoing support.

But how do you get your donors to sign up for recurring monthly giving? That’s where Text-to-Donate comes in.

Text-to-Donate is a simple and effective solution that lets your donors subscribe to recurring gifts through text messages. They must simply text a keyword (such as LOVE) to a Short Code (such as 20222) and follow the prompts on their mobile phone to set up their monthly donation. Their monthly donations are charged to their cell phone plan, and the MGFC issues a tax receipt on the charity’s behalf.

Text-to-Donate has many benefits for both donors and charities. Here are some of them:

• It’s easy and convenient. Donors can sign up for recurring gifts anytime, anywhere, with just a few taps on their phones. They don’t need to fill out forms, visit websites, or make phone calls.
• It’s fast and secure. Donors can complete their donation in less than a minute where the donation is charged directly to their monthly cellphone bill that protects their personal and financial information.
• It’s engaging and rewarding. Donors can receive instant confirmation and gratitude messages from the charity, as well as updates and stories on how their donations are making an impact.
• It’s flexible and customizable. Charities can choose their recurring gifts’ amount and donors can cancel at any time – hassle free.
• Donors and charities can both benefit from text-to-donate. Text-to-donate can save you time, money and resources compared to other fundraising channels, such as direct mail, email, phone calls, etc.

MGFC’s Monthly Giving Campaign Tools

Partnering with MGFC can make a difference for nonprofits looking to increase their recurring donations. Through this partnership, an average of 10% of one-time donors can become monthly donors, providing ongoing support to the charity. On average, these monthly donors will continue to donate for 50 months, contributing around $1,100 to the cause. It’s inspiring to see the impact that can be made through these sustained contributions.

$1,000 Donor Lifetime Value

“On average, a charity partner can expect to receive 4-5 years of consistent income from a single donor with our monthly giving feature. Some of our donors have been subscribed to give monthly since 2012.” – Caitlin O'Neill , Director at MGFC

Calculating Potential Donor Lifetime Value:

Donor Retention Rate X Monthly Donation Value = Donor Lifetime Value

• Average Donor Retention Rate: 50 Months
• Monthly Donation Value: $20
• Donor Lifetime Value = $1,000

Here are some of the advantages of text messaging as a fundraising tool:

• High open rates. Text messages have an average open rate of 98%, compared to 20% for email and 4% for direct mail.
• High response rates. Text messages have an average response rate of 45%, compared to 6% for email and 1% for direct mail.
• Low cost of acquisition. Text messages have an average cost per acquisition of $0.05, compared to $0.50 for email and $1.50 for direct mail.
• Simplify Administration: MGFC takes care of all tax receipt administration so you can stay focused on your mission and impact.

Text-to-Donate is Easy and Compliant

Text-to-Donate is powered by MGFC, a reputable and experienced service provider that ensures a donation’s security, privacy and compliance. They follow the guidelines and standards of the Canadian Radio-television and Telecommunications Commission (CRTC), the Canadian Telecommunications Association (CTA), and the Canada Revenue Agency (CRA). By partnering with Canada’s trusted wireless carriers, donors and nonprofits can rest assured that their data, banking information, and money are managed safely and securely.

Text-to-Donate is a proven and powerful solution that can help you convert more one-time donors into recurring monthly donors. Don’t miss this opportunity to grow your donor base, increase your revenue and make a lasting impact on your cause. Sign up for text-to-donate today!

If you want to learn more about partnering with MGFC, please visit our website at https://www.mobilegiving.ca/en/contact-us/.

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A Special Thank You to MGFC’s Amazing Partners

MGFC can provide Canada’s only carrier-billed Text-to-donate platform due to its incredible partner network—a special thanks to all our delivery, technology, and strategic partners that make what we do possible.

Carrier Partners: BCE Inc. (Bell Mobility, Bell MTS, PC Mobile, Virgin Plus, Lucky Mobile), Eastlink, Shaw Communications (Freedom Mobile, Shaw Mobile), Rogers (Chatr, Fido), Tbaytel, TELUS (Koodo), Videotron (Fizz).

Technology Partners: ICF Next, Bandsintown, AWS, and Dirox.

Executive Partner:?The?Canadian Telecommunications Association.

U.S. Partner:?The?Mobile Giving Foundation?is the sister organisation to MGFC and shares technology resources.

Strategy Partners: designACE This blog was written in partnership with Andrew Edwards and Christine Reynolds, designACE.