So, you’re now offering donors an option to give monthly. Fantastic!
How’s that going?
Did you know . . . with a few tweaks and targeted strategy, you can grow your monthly giving program to provide a reliable source of revenue to sustain your organization long-term?
The average retention rate for monthly donors is 70%. So the average attrition rate is 30%.
The average retention rate for first time donors is about 40%. The average attrition rate is 60%.
"Donor attrition is the equivalent of termites eating away at your home. Many home owners are unaware that the support system of their flooring is being destroyed."
If you do these simple things, you’ll boost your overall retention rates and reduce the risk of “termites” eating away at your foundation. Fewer lost donors (“termites”) mean more revenue for your mission and ministry.
And a well thought out and organized monthly giving program will keep your organization free from the pesky termites. *
Monthly Giving is a win/win for the donor and your organization because . . .
© Donors give more overall
© You are helping to build stronger relationships with your donors
© Donor Retention increases and “termites” (attrition) decreases
© Monthly Donors have a higher likelihood of becoming major and legacy donors
© There is now ongoing, reliable, and predictable revenue to support your life-changing mission.
© Fundraising costs are lower overall
So, how can you grow your Monthly Giving program?
#1 Shower Donors with Gratitude and Appreciation
“Making donors feel truly appreciated is what can separate you from the average nonprofit.” ~ Jay Love, Bloomerang
Mail your thank you letter within 48 hours of receiving the initial gift. The letter should be personalized to that donor and make the donor feel truly appreciated. And remember: “A receipt is not a Thank You.”
No need to send form letters every month after you’ve processed the payment. Send the receipt at year end.
A thank you call is a must for ALL donors. Recruit your ED, Board, and staff to make those calls. All gifts of all sizes matter and should be acknowledged with a phone call. Many legacy givers started out as small one-time donors.
Thank your donors often and sincerely. Remind them that they’re part of an important cause.
“When people give to charities, it activates regions in the brain associated with pleasure, social connection, and trust; creating a ‘warm glow’ effect.” ~ 2006 Nat’l Institutes of Health
After all, your organization is responsible for keeping the ‘warm glow’ alive in your donors for years to come.
#2 Communicate Regularly
Your organization should communicate with the donor regularly. Communication is so much more than just “asking” and receipting. It is about a well-planned year-long effort to inform and engage your donor in the good work their gift made possible.
Not all donors are the same, so make sure your communications are tailored to fit the donors in your monthly giving program. And communications to the exclusive Monthly Giving Club, will make your donors feel even more special.
Your job is to communicate enough, so that donors feel good (‘warm glow’) every single month they give.
© Demonstrate the impact of the donor’s gift,
© Show donors how their monthly gift makes a difference,
© Celebrate serving constituents more efficiently and even serving more constituents, and
© Provide opportunities for donor input and feedback.
#3 Offer Additional Giving Opportunities
Just because you now have a Monthly Donor, don’t stop asking for additional gifts of support. Monthly donors are loyal and if inspired they will give again and in other ways.
Give them opportunities to:
© Upgrade their monthly gift at least annually
© Support special initiatives
© Give to capital campaigns
© Give a one-time gift at year end
Always the best way to find out if your monthly donors are amenable to additional giving opportunities is to ask. Not ask for the gift, but rather ask them “are there other ways you would like to support the mission”. Engaged donors will likely welcome additional opportunities to support their beloved cause.
So take your current monthly giving opportunities, tweak them a bit, and watch the revenue stream in for your life-changing mission and ministry.