Establishing a recurring giving strategy before online giving came into existence was nothing but a hassle. Organizations had to get donors to commit to making regular contributions either by phone or mail and then often had to follow up with those same donors to make sure they followed through with their commitment.
If you were on either side of that situation, it was inefficient and stressful.
Now, we have technology that makes it easier for your donors to give monthly without the burden of forgetting, and your organization has the peace of mind that donors are following through with their commitment. Plus, now you can avoid all those awkward phone calls.
Even with all the technology available today, most organizations haven’t created a strategic recurring giving program. Why should your nonprofit add recurring giving to your fundraising plans?
1. Recurring giving offers a steady income stream
Recurring giving offers regular, dependable funds to a nonprofit.
External factors, such as elections or natural disasters, can hurt one-time donor numbers. Where reactive giving moments can benefit some organizations, others are left with fewer donors and dwindling donations as certain organizations organically take priority.
If you have a robust recurring giving program established, those steady donations can save nonprofit programming and support constituents, even as one-time donations wane.
From One-Time to Lifetime: Turning Year-End Donors into Recurring Supporters
Recurring donors give 42% more annually than one-time givers. Year-end giving, including #GivingTuesday, is the perfect time to attract donors and turn them into loyal, recurring supporters.
Watch this webinar on-demand, featuring Giving Tuesday’s US and Canada Hub Director, to discover strategies for nurturing donors, building recurring giving programs, and boosting donor retention.
2. Maintaining a recurring giving program is simple
If you’re using a fundraising platform, you can offer donors a seamless and secure way to keep giving without missing a beat.
One of the best ways to do this is to set all your forms to ‘recurring’ as default. This is a sure way to let your donors know that they have the option to set up a recurring donation. You can also implement a text message campaign or offer pop-ups on your donation form.
3. Recurring giving leverages existing campaigns and events
Recurring giving is a logical thing to add to your existing campaigns and events. From Giving Tuesday to your golf event or gala, you can experiment with messaging to encourage regular giving.
Communicate the benefits regular donations have to your mission and constituents. Consider segmenting your donors and asking people to level up their giving slightly by splitting their $100 donation or $200 donation into $10 or $20 a month automated gifts.
12% of new recurring gifts are first placed on Giving Tuesday.
Sources: From One-Time to Lifetime: Turning Year-End Donors into Recurring Supporters
4. Donor retention for recurring giving is high
The average donor retention rate hovers somewhere around 40%. This means if you receive 1,000 individual donations, by the following year, only 400 donors will remain.
Establishing an easy way for your donors to choose if they want to opt-in to a recurring giving program will help boost your overall retention rate, allowing your organization to keep more and more donors year over year.
A strong recurring giving program has the power to more than double your retention rate.
Donors who gave 7+ gifts a year have a retention rate of 87.9%.
Sources: Fundraising Effectiveness Project
5. Recurring donors have a higher average lifetime value
The average lifetime value (ALV) of a donor is the predicted total contribution from a donor over time. Why does ALV matter?
Unsurprisingly, the ALV of a typical one-time donor, with unimpressive average retention, is lower than that of a highly engaged recurring donor.
Given that the cost of getting a new donor is five times that of retaining an existing one, your organization is losing out on money and spending more on staffing and marketing by not implementing recurring giving.
Since monthly donors are more engaged, they are a smaller group to engage further in things like volunteering and advocacy, in addition to folding them into a major giving pipeline.
6. Have more time to focus on your mission and programs
Nonprofit staff are spread thin, and turnover is rampant. One in four organizations reported that they lost more staff in 2024 than was typical.
A lot of staff time is dedicated to the fundraising grind. Imagine what a steady, dependable stream of income could mean for staff resource allocation. Wouldn’t it be nice to build relationships and steward donors rather than brainstorm another e-mail subject line that will have a 2.3% open rate?
Recurring giving is more than just a fundraising tactic—it’s a strategy that provides financial stability, strengthens donor relationships, and allows your organization to focus on its mission. From offering a dependable income stream to boosting donor retention and lifetime value, the benefits are undeniable.
By integrating recurring giving into your fundraising plans, you can reduce staff workload, create more predictable revenue, and deepen engagement with donors who are committed to supporting your cause. Start small, experiment with messaging, and make it simple for donors to opt in. The result? A thriving nonprofit that’s better equipped to fulfill its mission, even during uncertain times.
Curious how to kick off or improve recurring giving at your organization? These Recurring Giving Appeal Templates offer easy, pre-made messaging for you to copy and paste for e-mails, social media posts, and text messages.
