Why Your Organization Needs Recurring Donations
The Leading Edge in Donor Relations
It’s undeniable: monthly or recurring donors can be a huge boon for your organization. Back in 2004, the Principal Fundraising Consultant for Blackbaud, Bill Connors, stated as much in saying:
“Fundraisers are on a search for new techniques to increase donations, build donor loyalty and add a new level of predictability while also improving operational efficiency… the concept of recurring gifts is simple: donors commit to a donation amount that is paid regularly.”
That Connors noted this trend in 2004 makes it very prescient, especially considering the fact that monthly giving in America at that time pales in comparison to today’s rates.
Why was Connors so spot-on in his assessment of the importance of recurring gifts as opposed to one-time donations?
Connors was well ahead of the curve in positing that monthly gifts are better for organizations and benefactors because monthly giving:
- Is funding that organizations can count on
- Is more cost-effective (especially when donors save money on postage by donating from their bank accounts directly)
- Is easier for organizations to process
- Provides upwards of 25% of an organization’s yearly revenue
- Increases retention rates with donors
- Drives up the long-term value of donors, 80% of whom on average give for more than 7 years
And here’s possibly the most noteworthy statistic when it comes to recurring donors: the typical monthly donor gives more in a single year than a donor who makes a one-time gift – 42% more. Because monthly giving can be automated, it’s much easier for donors to incorporate a reasonable sum to give in their monthly or annual budgeting.
When more of your funding can be anticipated weeks or months ahead of time, your organization has the freedom and time to strategize campaigns and projects since you aren’t being held hostage by not knowing the volume of your revenue stream.
Want to learn how to turn one-time donors into recurring givers? Check out “The 2 Tips to Develop Recurring Donations” here!
VP Client Service
For 30 years, Lolly has been on the front lines with some of the most recognizable charities such as The Salvation Army, Operation Blessing International, CBN and others. Lolly brings a wealth of experience in direct response, Spanish marketing and broadcast to make her an invaluable asset when it comes to serving her clients’ fundraising needs.