Guest Author: Liz Murphy, Allegiance+Pursuant Group
Monthly giving is on the rise in the nonprofit sector. While total online giving revenue dropped slightly in 2023, monthly giving increased by 6%. In addition to this positive trend, monthly giving brings other benefits to the table. These donations happen on a regular schedule, giving organizations a reliable source of funding. This allows nonprofits to plan and budget more accurately, complete more impactful work in the short term, and achieve long-term financial stability.
Because monthly giving programs can have such a positive effect on your organization, it’s crucial to do everything you can to recruit and retain a strong base of recurring donors. In this guide, we’ll walk you through how you can do this through targeted outreach and personalized interactions. However, let’s begin by looking more closely at why these efforts benefit your nonprofit (and donors) alike).
What are the benefits of monthly giving programs?
As mentioned, monthly giving programs offer consistent funding on a regular basis, and broader trends indicate that this form of giving is growing in popularity among donors. While these are the primary benefits of recurring giving, these programs can also improve your operations. Double the Donation’s guide to recurring giving outlines these additional advantages:
- Reduced strain on staff. Rather than chasing down donations each month, your staff can focus their time on securing the first monthly gift. From there, donations are made automatically without much input needed—apart from regular thank-you messages. Therefore, staff can invest their extra time back into other ways that further your mission.
- Higher donor retention rates. Donors involved in recurring giving programs are more loyal than donors who only give once or twice. By prioritizing recruitment and stewardship of monthly donors, you’ll likely see an increase in your nonprofit’s retention rate.
- More convenience. Monthly giving programs make the process of giving to their favorite cause easy for your donors. They can set up automated monthly donations once and then not have to remember to give again or do anything additional to support your work.
Attracting and retaining monthly donors can also be more cost-effective in the long run. Consider this: the effort and resources needed to obtain one donation are similar for one-time and recurring donations. However, monthly donors continue to give after the initial gift, resulting in a higher total return on investment.
How can you target potential monthly donors?
Whether you’re just starting a sustainer program or want to grow an already successful one, you’ll need a plan for reaching new donors, engaging those already contributing, and retargeting supporters who may have stopped giving. Tailoring communications to each of these points in donors’ journeys will make them more compelling and relevant.
When drafting your plan, follow Allegiance Group + Pursuant’s advice by considering the three pillars of nonprofit marketing: the market, your supporters, and your resources. In other words, dig into your data to understand the greater context in which you’re promoting the program, what drives your supporters to give to your cause, and what resources you have at your disposal.
When you’ve done your research, you can start implementing the following communication strategies at each stage of the donor journey.
Recruit New Donors
During this phase, you’ll be targeting supporters who have never enrolled in your monthly giving program before. They may have contributed one-time gifts in the past, but they could also be new to your organization. If you’re unsure of which donors would be receptive to these appeals, consider analyzing past trends, identifying common traits among your current monthly donors, or even testing AI tools to identify the best candidates.
To attract new donors to your program, consider communication strategies like:
- Sharing statistics. If you have an established monthly giving program, share statistics like, the number of other donors enrolled, and the impact of their donations. This is also a good time to highlight success stories.
- Making the benefits tangible. The last thing you want for donors is for them to feel like they’re throwing their money away or that their modest donation isn’t making a difference. Combat this by assigning some kind of tangible impact to each donation. For example, an animal shelter might share what different dollar amounts can accomplish (e.g., $5 a month can feed a litter of kittens) or allow monthly donors to sponsor specific animals until they’re adopted.
- Offering incentives. Consider extending incentives or exclusive benefits to your monthly donors. For example, you might offer new donors special gifts or VIP access to an upcoming event. Or, becoming a “member” could provide year-round benefits like discounts on your merchandise or a subscription to an exclusive newsletter.
Once these donors make the first donation in the series, send them a heartfelt thank-you message along with any welcome materials they might need. For example, you might walk through the benefits or opportunities your nonprofit offers to its monthly donors. Always give them access to a person at your organization.
Retain Current Donors
This segment of supporters are those who are currently enrolled in your monthly giving program. While you won’t need to convince them to join, your nonprofit will need to keep them interested and engaged.
The following digital marketing strategies and ideas can help you do so:
- Share personalized messages. While you should always strive to personalize supporter communications, it’s especially important for recurring donors. After all, they are exceptionally loyal, so repay them by taking the time to learn about them and address their interests, passions, and giving motivations. Share tailored thank-you messages, updates, and content based on their preferences.
- Provide regular updates. Offer impact updates about what their monthly donations are helping your organization accomplish. Showcase any success stories, statistics, or other tangible results to make these updates engaging (e.g., adding photos or video from a community outreach event their donations helped fund).
- Recognize their support. Give these donors public shoutouts to acknowledge their support (with their consent, of course). This could look like featuring their names on a dedicated landing page on your website, posting social media spotlights, or simply mentioning your recurring donors at events.
Remember to regularly ask members of the program for feedback. Share surveys that ask them to identify the program’s strengths and weaknesses and make constructive suggestions. This way, they can collaborate with your nonprofit to shape a program that meets their needs and expectations.
Re-engage Lapsed Donors
Although the strategies listed above can help you prevent supporters from dropping out of your monthly giving program, it’s inevitable that some supporters might stop making monthly contributions. This could be for many reasons, from financial hardship to a change in philanthropic priorities but most typically this is caused by an issue with their payment method (like their card changed, expired or declined).
Whatever the reason, your nonprofit should always keep track of the reason why a monthly donor drops out and then make an effort to contact these lapsed supporters in some way. While remaining sensitive to the possible reasons they may have withdrawn support, consider gently reconnecting with methods like:
- Targeted reactivation campaigns. Explain that you’ve noticed their absence from your program and remind them of the impact they made as a recurring donor. However, avoid making them feel guilty about leaving. Express that no matter their reason for pausing, your nonprofit will be there if/when they are ready to come back.
- Updates on organizational growth. Fill these supporters in on any interesting and exciting updates that have occurred since they paused their monthly gifts. This could be a new program, impactful milestones, expansion of your facilities, etc. Lapsed donors may then feel inspired to be a part of your exciting period of growth and progress.
- Special offers. Similar to when you’re recruiting first-time monthly donors, offer time-sensitive incentives to those who re-enroll. For example, maybe a corporate partner is matching all gifts made that month. Or, perhaps you’re giving away free totes, shirts, or other fun merchandise if they re-enroll.
With these donors, take extra care to make your communications feel personal. Reach out through their preferred communication channel, and go the extra mile if you can. For example, if they prefer direct mail, you might send a handwritten note rather than a typed one. This can make donors feel seen and valued as a core part of your organization’s success.
Monthly donations offer an accessible form of funding that you can count on, giving you the power to quickly address emergent situations, make accurate financial decisions, and properly plan for the future. However, none of this would be possible without your loyal supporters!
Always remember to put your relationships with these donors first by consistently expressing your genuine gratitude for their generosity. This makes them feel valued as more than just a dollar sign, paving the way for years of additional support.
Liz Murphy is an EVP at Allegiance+Pursuant Group, a direct response fundraising agency and technology company. Liz has more than 30 years of experience growing digital and integrated fundraising and communications programs for social justice, health, and international relief nonprofit organizations.
Liz is an award-winning copywriter and is a frequent speaker at industry conferences, including ANA, DMAW, Bridge, and NTC. She is also a member of the Board of Directors of the Direct Marketing Association of Washington Educational Foundation.
