Creating a Successful Monthly Giving Program: A Comprehensive Guide
Monthly giving programs adopt a community-centric approach to fundraising, firmly anchored in partnership, mutual understanding, and shared values. Not only do they nurture sustained trust, but they also transform smaller contributions into a consolidated force for positive change, channeling collective efforts toward achieving a shared mission and objectives.
Many schools and organizations, surprisingly have not tapped into the potential of monthly giving programs. However, for those that have, the results are significant. Joe Callahan, Chief of Staff at E.L. Haynes Public Charter School and a long-time FundEd partner, recognized this potential early on. Initially, his program had few monthly donors, but Joe, drawing from past experience, knew its potential. Prioritizing donor engagement over sheer funds raised, he recognized the amplified value of modest recurring donations. Then, the pandemic marked a turning point. Highlighting the urgent need for support during the virtual school year led to a surge of nearly 50 monthly donors. Most remained loyal, particularly those resonating with specific initiatives like food pantries, mutual aid, wellness, and transportation. To those considering launching a monthly giving program, Joe advises being attuned to your community’s needs, tailoring outreach to unique causes such as arts or athletics; and acknowledges the importance of making every monthly gift tangible and impactful.
Below is a comprehensive guide on the benefits of a monthly giving program and how to get started.
Why Create a Monthly Giving Program
Launching a monthly giving program is a strategic move that can transform the way your school and organization attracts and retains donors. It presents a myriad of benefits which include:
Raising More Money: Consider this – a donor who gives $50 once versus a donor who commits to $15 a month ($180 annually). The difference is an additional $130 per year. On average donors who set up a recurring donation give 42% more annually than one-time donations.
Increasing Retention Rate: Monthly donors tend to support your cause for longer periods, resulting in a steady influx of funds. The retention rate for monthly donors is a striking 76.4%, leading to sustained support. Their sustained commitment amplifies the potential impact of your organization's work.
Deepening Impact and Investment: A monthly giving program encourages a relationship-building model, fostering deeper connections between your organization and its donors.
Stable Income for Organizations: Regular monthly donations provide a predictable and reliable revenue stream.
Lower Costs and Greater Convenience: Acquiring new donors can be an expensive process. Monthly giving programs help in retaining donors, effectively lowering your costs. Furthermore, they offer convenience to both parties – for organizations in managing funds, and for donors in terms of affordability and ease of donation.
Greater Impact for Donors: Monthly donors transition from being mere contributors to becoming investors in your cause. Their continued support allows them to make a significant and lasting impact on the programs they care about.
Provide Donors What They Want: Offering a monthly giving program provides an easy and effective way for donors to support your cause. They can choose an affordable amount to donate each month and receive a single receipt at the end of the year (versus monthly), simplifying their contribution process.
Steps to Starting Your Monthly Giving Program
Get Your Organization Ready:
Preparing your organization for a monthly giving program involves a multi-faceted approach which includes:
Staff and Resources: Dedicate a staff member to manage monthly donors. Have a bank account that accepts electronic funds, and ensure you have a plan and the necessary stewardship materials.
CRM System: Use a CRM system to manage monthly donations and create an online donation page. Make sure to have pop-ups that explain the "why" behind monthly giving.
Personal Testimonials: Share stories and testimonials that emphasize the value of monthly giving. Ensure your message is donor-centric, focusing on their potential impact and convenience.
Embed Monthly Giving: Make monthly giving an integral part of your overall fundraising strategy and communication/ stewardship plan. Recognize the unique ways that you can connect with monthly donors and celebrate their commitment.
Identifying Monthly Donors:
Recognizing and understanding the profile of monthly donors is a crucial step in creating a successful giving program. Below are some characteristics of monthly donors:
Multiple Yearly Gifts: Monthly donors are those who give more than once a year and are happy with how you use their gifts.
Belief in Impact: They believe their contributions are making a significant impact.
Awareness of the Need: They recognize the growing need for your services.
Remember, your monthly donors are already in your database. They likely donate $100 or less and give three or more times a year. They may also be giving to multiple programs, which signifies their desire to make an impact.
Promote Your Monthly Giving Program:
Once you've set up your monthly giving program, it's time to let the world know about it. Consider the following:
Branding: Consider using a catchy name for your monthly giving program. Something like “Eagles Nest or” Trailblazers” can be attractive to potential donors.
Direct Mail: Feature monthly giving prominently in your direct mail. Make a personal connection with the reader through a special invitation letter.
Event Sponsorships: Advertise your monthly giving program at events and have staff members help spread the word.
Email Marketing: Lastly, don't underestimate the power of email. It's more effective than any other channel for promoting your monthly giving program.
Starting a monthly giving program can be a game-changer for your organization. It brings in more funds, fosters stronger relationships with donors, and provides a stable revenue stream. Don't let myths or lack of preparation stop you. Your donors, your cause, and your organization will reap the benefits.
