More and more nonprofits are launching monthly giving programs, donor clubs, and recurring gift societies—and for good reason. A well-structured monthly giving program can create a reliable revenue stream, increase donor retention, and even boost planned gifts. If your organization hasn’t implemented one yet, here’s why now is the time to start.
1. Generate Predictable, Recurring Revenue
One of the biggest benefits of a monthly donor program is financial stability. Automatic electronic funds transfers (EFTs) and recurring credit card payments provide a consistent cash flow, ensuring that your general operating fund remains strong. Knowing you can expect X dollars per month reduces financial uncertainty, allowing you to focus on major gifts and high-capacity donors.
2. Strengthen Donor Loyalty and Reduce Attrition
Recurring donors are far more loyal than one-time givers. Monthly giving programs encourage donor retention, as contributing on a regular basis becomes a habit. According to Giving USA 2022, nonprofits face an average donor attrition rate of -6.2%—but a strong monthly donor program helps counteract this trend, keeping supporters engaged for years.
3. Increase Matching Gift Opportunities
Many companies offer corporate matching gifts, and a monthly giving program makes it easier for donors to take advantage of these programs. Be sure to mention matching gift opportunities on your monthly donation page. Vendors like Double the Donation and Affiniquest offer APIs that can be embedded into your website, allowing donors to check their employer’s match eligibility instantly.
4. Encourage More Generous Giving
According to Blackbaud’s latest NGO Giving Report, 60% of donors prefer to give online, and 44% are members of a monthly giving program. By breaking down contributions into affordable monthly amounts, donors often give significantly more over a year than they would through a single one-time donation. A donor who might hesitate to give $500 upfront is often comfortable committing to $42 per month, leading to a higher annual gift total.
5. Cultivate Future Planned Giving Donors
Recurring donors tend to have higher RFM scores (Recency, Frequency, Monetary value), making them ideal prospects for planned giving. Even donors with moderate giving capacity during their lifetime may consider leaving a legacy gift to an organization they have supported for years. A monthly donor program nurtures long-term relationships and builds a pipeline for planned gifts.
Start Your Monthly Giving Program Today
A well-structured monthly giving program can help your nonprofit increase donor retention, generate predictable revenue, and boost long-term giving opportunities. With the right strategy, you can cultivate lifelong supporters while securing a more financially stable future for your organization.
Ready to launch? Start planning your monthly giving program today and watch your fundraising revenue grow!
