In an age of automation and subscription-based services, monthly giving programs allow donors both ease and consistency. In short, monthly giving programs are donation plans that enable donors to give recurring gifts on a monthly basis. Nonprofit organizations can reap the benefits of setting up this option for their supporters in three key ways.
1: Administrative Peace of Mind
Not only will the automated aspect of monthly donor programs save you time, your fundraising team can save the effort usually spent on seeking lots of one-time gifts. And aside from the initial setup, offering donors a monthly giving option can cut back on administrative costs in the long run.
An additional consideration is the extra ease for budgeting and goal-setting. Nonprofit organizations love knowing they can plan ahead based on a steady stream of funds they can count on. Monthly donor programs can provide a sense of stability, and if monthly donors need to cancel, this notification can still serve as a helpful tool when looking ahead. Either way, your nonprofit will be less in the dark about funding each month, which means a tighter budget and greater confidence to invest in your mission.
2: Donor Peace of Mind
How would you feel if your Netflix or Spotify accounts asked you to renew your plan every five weeks? And if every time, they asked you to re-enter your information and card number? This is essentially what’s happening when you ask online donors for their information every time. A monthly option makes it easy for donors, taking funds each month just like a subscription service.
Donors love knowing they can support causes they care about with both consistency and simplicity. Monthly donor programs also have the added benefit of increased donor engagement, as financial investment tends to bring an extra level of personal responsibility (also known as “putting your money where your mouth is”). If donors can see that their $25 dollars a month feeds a rescue puppy, or their $200 a month educates a girl who wouldn’t otherwise get to attend school, this tangibility of impact is meaningful.
3: New Ways to Measure Outcomes
Organizations with monthly donor programs can draw from the data they collect from monthly donors to help measure outcomes. While the phrase “data collection” often brings to mind headlines of privacy breaches and uncomfortably specific advertisements, in this context, we’re talking about being able to track how your funders are helping your organization. Being able to quantify your impact is not only helpful for reporting requirements, it’s a valuable tool for evaluating how donors are contributing to your cause.
Imagine if you could tell donors that their monthly contributions enabled your organization to purchase 100,000 meals for homeless veterans or plant 100,000 trees at the end of the year. The possibilities are endless with a bit of creativity. A study conducted by The 2016 U.S.® Trust Study of High Net Worth Philanthropy, in partnership with the Indiana University Lilly Family School of Philanthropy, revealed 44% of donors were motivated to give if they believed their donation would make a difference.
For more ideas on how to get the most out of your monthly donor program, build a great donation page, or other strategic planning initiatives, feel free to contact us. We’d love to help you set your nonprofit on a trajectory for success.